REBusinessOnline

Entertainment, Grocery Sectors Expand in Greater Boston Retail Market

The greater Boston retail market experienced a substantial rise in the vacancy rate to 9.5 percent through June 2018, reflecting an 11.3 percent increase in unoccupied space, compared to a level of 8.6 percent in 2017. At the same time, total inventory ended the year at 196 million square feet, a gain of 1 percent, nearly the same square footage as the increase in vacant space. This resulted in a nominal negative absorption rate of only 21,900 square feet. A considerable number of large …

Greater Boston Commercial Market Remains Robust

While other U.S. cities have demonstrated volatile economic markets, Boston has sustained a strong, healthy economy for more than 40 years. This economic health coupled with the city’s diversity of industries has had a lasting, positive impact and increased demand for commercial space in the greater Boston market. The snapshot of the Class A and B, lab and office market is strong but shows some signs of regression. Today, overall vacancy for lab and office including sublet space is 12.8 …

Office Demand Holds Steady in Suburban Boston Markets

Boston’s metro west office market continued to move along at a steady clip in 2018. Many of the trends seen in the west market have been consistent over the past few years.  One of the most prominent trends is that tenants continue to prefer high-quality properties. Class A product has benefited from the demand, resulting in a limited supply of Class A large blocks. In contrast, commodity space is still lagging from a demand standpoint. Additionally, many landlords have been …

Elevated Home Prices, Housing Shortage Keep Vacancy Tight in Boston Multifamily Market

A highly educated workforce is driving corporate growth throughout Boston, particularly in the finance, technology and medical sectors.  PNC Financial Services and JPMorgan Chase have announced considerable expansions and some international companies, including LogPoint, are setting up North American operations in the Boston metro. As a result, approximately 47,100 positions were created since October 2017, building on the 39,400 jobs added in the prior 12-month period. Tim …

Developers Behind Boston’s Newest Retail Neighborhoods

In the greater Boston area, over just the past decade, a whole new kind of neighborhood has been popping up. From Ink Block in the South End to the Seaport of Boston and Assembly Row in Somerville, it’s no secret that retail developers are evolving with the times by shifting their focus from traditional shopping malls to integrating retail into new and dynamic mixed-use developments offering housing, retail, entertainment, office space, parking and more. Kerry Dowling, Senior Vice …

Boston Industrial Market Continues Hot Streak

Greater Boston’s industrial market continued its hot streak in 2018. Positive net absorption of 350,000 square feet in 2018 marked the eighth straight year of gains.  Vacancies, which ended the year at 10.1 percent, have halved since peaking at the end of 2010. Over this time, the market absorbed 17.5 million square feet and is now poised for continued growth.  Tenant demand remains strong and some of the larger tenants in the market— Albertsons, Premier Distribution, …

Small But Mighty Cambridge Office Market Primed for More Growth

Although one of New England’s smallest geographical submarkets, spanning only 7.1 square miles, Cambridge packs a serious one-two punch between its thriving office and life science sectors.  Routinely ranked as one the nation’s most densely populated cities, universities, research institutes and private corporations employ many of the 110,000 residents of Cambridge. Not surprisingly, 44 percent of those residents are highly educated millennials between the ages of 18 and 35, …

Boston Relishes Status as Hot Spot for Tech, Life Science Firms

The Boston office market continues to see established out-of-market tech users from a diverse group of industries take large blocks of space. In the Seaport District, Aptiv, a division of the car technology company Delphi Technologies, took 93,000 sq. ft. at 100 Northern Avenue. In the central business district, Spotify, a digital music service company, opened its first Boston location and leased 73,000 sq. ft. at Center Plaza. Verizon’s Oath, the digital publishing arm of the company, …

Greater Boston Industrial Market – ‘If You Build it, They Will Come’

The Greater Boston industrial market is busier than ever. Supply for quality warehouse and flex space is limited and the demand is at an unprecedented high. As a result, we have seen rents soar, achieving upwards of $7 to $7.50 Triple Net rent along I-495, and $9 to $11 Triple Net rent along Route 128, notable increases from just a few years ago. To coin a well-known quote from the 1989 film Field of Dreams, “If you build it, they will come,” and both investors and tenants continue …

The Boston Office Market Keeps On Marching

Simply put, Boston is — and will continue to be — a top destination for tenants and capital alike. With strong market fundamentals and key drivers (education, finance, healthcare, life sciences and technology), 2018 is likely to be another terrific year for the commercial real estate sector. [caption id="attachment_196361" align="alignright" width="100"] Ben Sayles, HFF[/caption] Market Metrics Boston’s urban core comprises four major submarkets: Downtown, Back Bay, Seaport and …

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