Credit: BBJ

Class A office rents have experienced a 76% increase in the 2nd quarter for some of Boston Properties local assets. Combine that with reduced tenant improvement dollars and little-to-no rent concession, and the net effective cost to occupy has increased even more.

According to an article in the BBJ, “Boston Properties raised net rents by a median average of 28 percent companywide for tenants with leases starting in the second quarter. But in Boston, Cambridge and the markets along Route 128, that net rent increase shot to 76 percent.”

From the Bizjournals:

“We continue to see the Boston suburban market as having the strongest relative demand growth across our portfolio,” [Boston Properties President Doug] Linde said on the earnings call. “We have more than 400,000 square feet of leases in negotiations from a series of life science, technology and even a few financial services organizations. Leasing velocity in the Waltham, Lexington submarket has accelerated during the last few months as a result of this demand, and much of it is organic expansion.”