From Jones Lang LaSalle’s quarterly market report:

Overview – While the U.S. economy may have already entered into recession, the same cannot be said for Boston. The city is fairing far better than other metro areas and thus far in 2008 remains active. The healthy market fundamentals established in 2007 are mostly unchanged, as positive absorption offsets the arrival of new sublease space. In the second quarter, Boston experienced 166,740 square feet of positive net absorption which helped counteract a negative first quarter, bringing the year-to-date total to a positive 20,942 square feet …

… On the other side of the scale, the market did gain approximately 100,000 square feet of sublease space, the majority of which is from Houghton Mifflin’s lease at 500 Boylston Street in the Back Bay. However, the volume of positive activity outweighed the increase in new space and kept the vacancy and availability rates relatively flat at 7.7 percent and 12.1 percent, respectively.

This is very encouraging. Hold your breath for another couple of quarters, but maybe we’ll get through this, relatively unscathed. (It sure helps that we don’t have any office buildings finishing up, anytime soon.)

Source: 2nd-Quarter 2008 Market Highlights: Boston – William P. Barrack, Managing Director, Brokerage Group, Jones Lang LaSalle

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