Boston – According to the Avison Young’s Office Insights Report for the second quarter of 2021, the recovery rate of offices in Boston is one of the highest in the country. Biotech and pharmaceutical companies, which are among the most prevalent sectors of employment in Boston, are returning to work at a rate of 46.4%, more than double the national average of 19.2%.
“The lab staff were among the first to return to work in Boston, likely due to the nature of their industry, which does not allow telecommuting,” said Tom Collins, director and managing director of Avison Young’s New England office. “With top companies also starting to return to offices and the city seeing an increase in tourism, we are seeing encouraging signs of economic recovery and a resurgent demand for office space.”
Leasing activity has declined since the start of the pandemic, down 34.7% per year from the previous 20-year historical average. However, demand for life sciences space has not diminished, reaching a staggering $ 93 per square foot effective rent.
“Prices and demand for labs are expected to remain strong, with a steady stream of life sciences buildings under construction, refurbishment and proposed projects demonstrating investor optimism for this asset type,” said Elaine Wall, Head of Northeast Data Group at Avison Young. … “Net effective lab rents continued to outpace office space in the second quarter by an 82.5% margin, and this trend has only intensified.”
Job resumptions and higher vaccination rates have allowed Boston’s unemployment rate to bounce from a high of 15.6% in April 2020 to 5.4% in April 2021. The overall recovery rate from COVID, based on extrapolated cell phone data, has reached a post-pandemic peak. 43.4%, while the Type O’Neill Tunnel has a recovery rate of 60.5%, indicating that people return to the city by car rather than public transport.
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