The downtown Boston office market is still very tight. Vacancy rates are around 3 percent in prime buildings and around 5 percent overall. Downtown rental rates are at record high levels. The suburban Boston office market is also very strong, with vacancy rates only slightly higher than downtown. Apartment buildings are in demand, but the retail sector is weak, with higher vacancy rates and lower rental rates than last year.
Contacts report various market conditions elsewhere in New England.
Office vacancy rates in the Greater Hartford area are around 18 percent while the Stamford office market is strong. The Maine commercial market, however, has not recovered so far this year. Demand for commercial space is low and banks have little confidence in the market, leading to a tight credit market and lack of new construction. The Rhode Island market is very strong, with low inventories and plans for new industrial and office construction. Moderate increases in rental rates are reported in Connecticut and Rhode Island.