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The City of Cambridge has a vibrant commercial real estate market consisting of over 19 million square feet of office (11.2 million) and laboratory (8.4 million) space. This inventory is divided into three major sub-markets: East Cambridge (approximately 60% of the market) encompassing MIT, Kendall Square, Technology Square and University Park; Mid-Cambridge (approximately 27% of the market) in Harvard Square; and West Cambridge (13% of the market) in the Alewife and Fresh Pond sections of the City. Laboratory and research & development space account for approximately 43 percent of this inventory.
The average asking prices for office space in the Cambridge market in the fourth quarter of 2007 was $44.78 and the average asking price for laboratory space was $51.97. The driving force for increased rents is demand for space as vacancy rates for office space continue to decline from 11.5% at the end of 2006 to 6.8% in the fourth qyarter of 2007. Labaoratory vacancy rates rose in the fourth quarter of 2007 to 11.8%. (Source: CB Richard Ellis MarketView Cambridge Office/Lab Market 4th Quarter 2007 -- Download full report, 790K PDF)
The commercial tax base in Cambridge provides approximately 64% of the City’s property tax dollars. This exceptionally healthy market is a significant factor in improving the quality of life in the City, allowing the City to spend more per capita on education and human services than any other city or town in the Commonwealth. Also, the City of Cambridge is one of a handful of communities in the nation to secure the highest possible rating (AAA) from the three major agencies that issue reports on municipal bonds.
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