City's Vacancy Rate Decreases

Despite the growing concerns of the city's government and businesses about surviving the recession, Cambridge experienced a decrease in commercial vacancy rates during 1991.

The vacancy rate in Cambridge fell from 12.4 percent to 12 percent, according to a report from Meredith and Grew, a Boston-based real estate company. Other Boston neighbourhoods generally experienced an increase in vacancy rates. The main area of commercial activity was centered in East Cambridge, where the vacancy rate dropped from 9.4 to 7.9 percent during the past year.

Cambridge's trend of decreasing rates is likely to continue, according to Ian M. Grant, vice president of Spalding and Slye Colliers, a Boston brokerage firm.

University Impact

Grant attributed the behavior of the Cambridge market to the proximity of Harvard and MIT.

He said office space in Cambridge is in demand because "Harvard and MIT churn out start-up companies, especially in biotechnology."

"Biotechnology is probably the biggest growth factor," Grant said.

These research and development companies are not affected by the recession because they receive financial backing from venture capital or large stock issues, he said.

Other observers attributed the decline in commercial vacancies to trendiness of Cambridge's shopping districts. Grant said, "Cambridge will remain fairly healthy."

"Generally, Cambridge is a very popular place to be," said Sally R. Alcorn, executive director of the Harvard Square Business Association.

Councillor Alice K. Wolf said the Harvard Square area is particularly popular because "it's a locus. It's right at a T-station."

The only other real estate market in the Greater Boston area to have a vacancy drop was the financial district, where the vacancy rate fell from 18.7 percent to 18.1 percent.