REBusinessOnline

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 …

Evolution of Seaport District as a Retail Hotspot, Other Trends to Watch

From new mixed-use developments popping up in the skyline to the increase of small-format stores, 2017 saw robust growth in downtown Boston’s retail landscape. Specifically, stabilizing rental rates have led to an uptick in retail leasing activity, showing the strength of both traditional retail destinations such as Newbury Street, as well as new mixed-use developments like One Seaport Square. While the downtown retail market is poised to remain stable, 2018 will welcome new trends fueled …

Urbanizing the Suburbs: Retail’s Role in Reshaping Boston’s Landscape

Over the past decade, urbanization has emerged as one of the most impactful trends to hit the real estate industry. This trend, embodied by the live-work-play concept, has been embraced by all demographic cohorts, from millennials to baby boomers and even retirees. While the impact has been most visible in the urban core, Boston’s suburbs are also being transformed, and the inclusion of ­pedestrian-oriented retail into new and existing projects is playing the integral role. Modernized, …

Boston Industrial Market Posts Lowest Vacancy Seen in Decades

The commercial real estate market in the Greater Boston area continued its torrid pace in the first half of 2017. All sections of the commercial real estate market inside Route 128 are white hot, especially after the announcement that General Electric will move its corporate headquarters to the Seaport District. Recent data indicates that Boston has one of the hottest economies in the United States and ranks as one of the top economies in the world. The 2017 Investment Intensity Index ranks …

Demand for Multifamily Units Keeps Pace With Increasing Supply in Boston

Despite the maturing commercial real estate cycle, Boston’s thriving economy continues to generate positive momentum for the metro’s multifamily property marketplace. Over the 12-month period ending June 30, 2017, area employers added 55,700 positions, growing the employment base by 2.1 percent. Job creation was driven by the typically high-wage healthcare and professional fields, and more than 30 percent of the new roles created were in office-using sectors. This healthy growth has …

The Boston Office Market is Still Extremely Active

The Financial District, Back Bay, and Seaport continue to experience strong tenant demand with a vacancy of 10.3 percent and continued rent appreciation. The Seaport, which has experienced tremendous growth for the last four years, received national attention with GE committing to move its corporate headquarters to the market and continues to make headlines with Amazon committing to 150,000 square feet. In addition, 121 Seaport Boulevard just leased to PTC (250,000 square feet) and Alexion …

E-commerce Impacts Retail Market in Eastern Massachusetts

Retail vacancy levels declined in 2012 and 2013 in Eastern Massachusetts following several years of rising vacancy rates during the Great Recession. But since 2013, vacancy rates have been on the rise as shopping habits continue to tilt toward online options. In 2016, retail inventory gained modestly, reaching 194.2 million square feet, an increase of 0.5 percent, although no major center opened during the year. The region added 488,800 square feet of vacant retail space, and the vacancy rate …

E-commerce Activity Drives Boston Industrial Vacancy to Lowest Rate in 15 Years

E-commerce and the growth of the digital age have become important factors in the tightening industrial real estate market. With single-digit vacancy rates becoming the norm in nearly all of the Greater Boston submarkets, existing product cannot supply the space necessary to meet current market demand. Consumers’ shopping attitudes have changed, and retailers are having to adjust their strategies to meet their needs. [caption id="attachment_184228" align="alignright" width="100"] Steve …

Boston Office Market Continues Its Run of Positive Returns

Greater Boston’s office market is continuing a very strong streak, closing 2016 and the fourth quarter on a good note. The year saw 1.4 million square feet positively absorbed with 789,000 square feet absorbed in the fourth quarter. The current vacancy rate is 12.7 percent, slightly lower than the market average over the last five years of 13.6 percent. Average Class A asking rents are $43.12 per square foot, which has appreciated 9.1 percent in the last three years. [caption …

Key Factors Driving Greater Boston’s Multifamily Outlook in 2017

Investors are attracted to Boston due to its diverse economy, education base and strong market fundamentals. In fact, major corporations like GE, Reebok, New Balance, and most recently Asics have all relocated to the city or are in the planning to relocate or rebrand here. As a result of this heightened interest in Boston as a global headquarters destination, the city is expected to grow, which in turn creates housing demand. [caption id="attachment_184093" align="alignright" width="100"] …