In Massachusetts, Boston has the same challenges as any other similarly-sized metro area. However, despite turbulence in the national economy, the Boston commercial real estate market continues to be a bright spot. Many amenities, such as the public transportation system, make it easy to get around the city, which is a plus for any business looking to invest in commercial real estate.
Another draw to Boston is the many activities to do in the area. Numerous historic sites are scattered all over the city, and there is also a plethora of history to soak in. From Fenway Park to Beacon Hill to Copley Square, there is something for everyone regardless if you’re a first-time visitor or a long-time resident.
In addition, the city draws leaders in biotechnology and education, as the area is the home to numerous colleges and well-respected hospitals. Biotech, life sciences, and medical research have continued to help Boston commercial real estate market stay ahead of other large cities in the country with the increased demand for commercial real estate space that can be used for life-science lab facilities.
Millions of dollars are being poured into many areas of Boston. 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 in the next decade. Boston’s other strong markets are in the Back Bay, downtown area, and Cambridge.
The commercial real estate market remains red hot as there are multiple offers on a property listing, and the prices are often exceeding the asking price on properties for sale. The competitive market continues to play a part which is driving up prices for commercial real estate in Boston.
Moreover, developers and builders are buying commercial land and lots in neighborhoods around the city and surrounding communities. The city has a population of 695,506 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 a savvy investor.
If you are thinking of buying, selling, or leasing commercial real estate, the rental market is in demand. Due to business growth and job opportunities drawing people to Boston, the prices continue to rise as available inventory decreases. This continues to be a strong trend with low mortgage rates, and this is an attractive time for individuals and businesses to relocate to the greater Boston area.
Though there are rising prices, buyers are investing in commercial real estate wherever they can. With such high demand, the prices will continue to increase, and with a continued need for businesses and housing for those workers, the commercial real estate developers are scooping up land for sale.
The bottom line is Boston has a tight market. People want to live in the city, and businesses want to operate in the city.
Since a strong commercial real estate market is good news for many employed in this sector, there are still some lingering concerns about the pandemic. For instance, some buyers may avoid going to tour the property. However, options for gathering information about a commercial property listing are getting easier with virtual tours. Many buyers are making offers without ever stepping foot into a property.
The Boston market continues to appear strong. As leasing activities increase, you can expect the market to become more competitive.
Several reasons are contributing to this. Due to low interest rates and high demand for properties around the city, you can expect to see this be an advantage for buying, selling, and leasing commercial real estate. You can expect the market to remain strong as interest rates should be low for the next few years.
The Boston Business Journal reports that “investment in commercial real estate in Boston has surpassed Manhattan to lead the country as the most liquid market.”
Capital continues to be inserted into the Greater Boston Real Estate market, and this trend should continue for the next few years. The strong market demands have fueled investor demands.
In summary, people worldwide have been taken by surprise by Boston’s strong commercial real estate market. The robust appetite for commercial real estate in Boston will continue to be in high demand, and you can expect to see more companies looking to lease space.
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