Tenants facing a lease rollover in 2017 can anticipate higher rent and slightly stingier concession packages. More tenants are likely to renew in place, or delay space-use decisions in hopes that rental rate growth will moderate in 2018.
As companies explore more of the region, industry clustering in Boston is breaking down a bit. Limited availability and spiking rents have forced many industries such as biotech, banking, and the legal sector to look outside their “comfort zones.”
High wages and cost of doing business will make it challenging for Boston-area startups to acquire and then retain talent to help their young companies succeed.