Specialized Labor, Tenant Demand Fuel Growth of Boston’s Life Sciences Market

By Brendan Carroll, research director, Cushman & WakefieldThrough the first three quarters of 2020, the Boston life sciences market is seeing record occupancy, a continuation of large new-building leases, stable rents at record levels, high levels of pre-committed new construction and an insatiable appetite for inventory in new submarket clusters.Cushman & Wakefield defines laboratory properties as facilities optimized for the physical scientific research of biotechnology …

October 30, 2020Healthcare, Market Reports, Massachusetts, Northeast, Northeast Market Reports, Office

Wanted: Essential, Durable Retailers in Boston

By Alex Patton Retail real estate investors in Boston are cautiously evaluating the risk profiles of tenants even as businesses reopen following temporary closures due to the COVID-19 pandemic. The emerging consensus is that until a vaccine is developed to safely treat the virus, the safest investments are tied to essential tenants with reliable incomes. That short list includes grocers, drugstores, home improvement businesses and liquor stores. Like the rest of the country, all nonessential …

August 7, 2020Market Reports, Massachusetts, Northeast, Northeast Market Reports, Retail

Boston Life Sciences Market Shows No Sign of Slowing in 2020

At this point, it sounds like the movie “Groundhog Day,” but 2019 was another impressive year of growth and success for the greater Boston life sciences real estate market — and that growth shows no signs of subsiding any time soon.Duncan Gratton, Cushman & WakefieldStrong levels of venture capital investment, big pharmaceutical partnerships and merger and acquisition activity continued to fuel unprecedented demand for life sciences space, not only in and around …

February 18, 2020Market Reports, Massachusetts, Northeast, Northeast Market Reports, Office

Selling Affordability is Crucial in Metro Boston

With a pressing demand for new housing in the Boston area and communities struggling to provide affordable options to mitigate the effect of rising prices, the barriers to providing new affordable multifamily properties remain significant. Here in the Boston region, the scale of the problem is immense. Boston’s Metropolitan Area Planning Council recently declared a need for 185,000 new units of housing over next 10 or so years in the 15 cities and towns that comprise the inner core of the …

January 22, 2020Market Reports, Massachusetts, Multifamily, Northeast, Northeast Market Reports

Developers Adapt to Tight Office Market in Northeast

Office vacancies are falling across the big metros of the Northeast as robust user demand outpaces the supply of new construction. Deliveries in the last year have primarily been limited to Class A, build-to-suit properties and mixed-use developments. Meanwhile, office tenants are seeking high-end amenities at favorable prices. Nationally, the office vacancy rate stood at 16.8 percent in the second quarter, up slightly from 16.6 percent a year ago, according to real estate research firm Reis. …

December 4, 2019Market Reports, Massachusetts, New York, Northeast, Northeast Market Reports, Office, Pennsylvania

Boston’s Retail Market Continues Move Toward Efficiency

With older, pure-play retail space being repurposed into mixed-use developments and e-commerce-resistant users growing their regional footprints, the Boston retail market is evolving in lockstep with that of the United States. At the same time, new, trendy retailers and restaurant concepts are vying to get their feet in Boston’s door, drawn to the market’s healthy fundamentals and above-average levels of disposable household incomes. The net result of all this activity is a revitalized …

November 20, 2019Market Reports, Massachusetts, Northeast, Northeast Market Reports, Retail

Boston’s Exceptional Fundamentals Continue to Fuel Higher Land Values

With a large influx of some of the world’s best and brightest residents, Boston has evolved from a regional powerhouse into one of the world’s foremost innovative cities in less than 10 years. Boston is both the second-oldest and the third-densest major city in the United States, and since its founding 389 years ago, the city has experienced super-charged growth, urbanizing faster than almost all its peers. Because of that unprecedented growth, undeveloped parcels in desirable areas …

November 13, 2019Market Reports, Massachusetts, Northeast, Northeast Market Reports

Demand for Retail Space Surges in Boston

Bolstered by strong growth in its millennial population and high-paying jobs, Boston’s urban core continues to boast one of the lowest retail vacancy rates in the country. But this trend has also led to a wave of new development that could temper that good news for Boston retail owners. According to data from Marcus & Millichap, metro Boston’s retail vacancy rate is expected to rise by 40 basis points from 3.2 percent to 3.6 percent in 2019, a year in which 1.3 million square feet of …

July 24, 2019Market Reports, Massachusetts, Northeast, Northeast Market Reports, Retail

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 …

April 3, 2019Market Reports, Massachusetts, Northeast, Northeast Market Reports, Retail

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 …

March 13, 2019Market Reports, Massachusetts, Mixed-Use, Multifamily, Northeast, Northeast Market Reports, Office