Even With a Sluggish Economy, the Commercial Real Estate Market in Boston Is Booming
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
This article was updated on 7/17/2023.
Boston's commercial real estate market continues to be a bright spot in the economy despite facing many of the same challenges as any other similarly-sized metro area. Many of the city's amenities, such as its public transportation system, make it easy to get around the city, a considerable advantage for Boston commercial real estate investors.
What's Drawing Investors to Boston Commercial Real Estate?
There's no shortage of things to do in Boston: Numerous historic sites lie scattered all over the city, and there's a plethora of history to soak in. From Fenway Park to Beacon Hill and Copley Square, there's always something for both residents & tourists alike.
In addition, the city draws industry leaders in biotechnology and education, as the area houses numerous colleges and well-respected hospitals. Biotech, life sciences, and medical research have continued to help Boston's commercial real estate market stay ahead of other large cities in the country amidst its increased demand for commercial real estate space that can be used for life science lab facilities.
Recent Commercial Real Estate Activity in Boston
Millions of dollars have been poured into many areas of Boston in recent history. For example, the Boston Seaport District has leased most of its space.
Many more projects are under construction or are being planned, and the region is set to double its size within the next decade. Notable Boston submarkets include Back Bay and Cambridge.
As of Q4 2022, Boston remains one of the most expensive places to live and work in: Prices for properties often exceed asking rates, and the market's competitiveness continues to place upward pressure on Boston's commercial real estate prices. Boston CRE investors are chasing multifamily in 2023, followed by medical and logistics facilities.
Boston Commercial Real Estate Development Activity
Moreover, developers and builders are buying commercial land and lots in neighborhoods around the city and its surrounding communities. The city has a population of 654,776 people, and more than 22 million people visit the city every year. Boston's diverse mix of brownstones and sleek new developments offer quite a generous blend of real estate opportunities for savvy investors.
Advice for Investors Looking Into Boston's CRE Market
If you're thinking of buying, selling, or leasing commercial real estate, Boston's rental market is in demand. Due to business growth and job opportunities drawing people to the city, prices continue to rise as available inventory decreases.
Despite the city's rising prices and softening office space market, buyers are still investing in the city's commercial real estate: Several large tenants that vacated the city at the onset of the pandemic are returning, including the LEGO Group.
What's Happened and What Lies Ahead
Despite ongoing economic uncertainty, rising interest rates, and a distressed office space sector, investors still seek Boston commercial real estate in 2023. This is true even as lenders tighten monetary policy, borrowers adopt more selective mindsets, and the majority of investors, according to a recent poll, plan to hold onto their properties in H2 2023.
What's more is that, in 2021, The Boston Business Journal reported that “investment in Boston commercial real estate surpassed that of Manhattan to lead the country as the most liquid market.” Even today, institutional dollars continue to flow out of New York City's boroughs and into other areas of the country.
List & Browse Boston Commercial Real Estate for Free on MyEListing.com!
MyEListing.com maintains one of the largest directories of Boston commercial real estate listings in the country. Use it for free to list & find commercial real estate in Boston.
Other recent articles
Article Search
Share
All Article Categories
