Like other commercial real estate markets around the country, Boston commercial real estate showed significant declines in the last quarter of 2008. This trend has led to some interesting new developments in the beginning of 2009, giving rise to new players such as the small business sector. Smaller chains are taking advantage of the new market environment, the silver lining so to speak.
While big chains are putting things on hold, smaller players are stepping up to the plate. There is always opportunity in crisis – for those players that can adapt, each day gets more unique. Interestingly enough, Brokers without a narrow focus are excelling as they meet the needs of so many different types of entities jumping into the commercial game. Pricing and market timing have never been more critical components.
The average size of transactions will likely shrink across the board too. Properties in the $1 million to $2 million range will become increasingly attractive as they are more financeable. These are the properties that were likely never even really noticed before now. Smaller spaces for military contractors, medical, biotech and health care companies will become more and more common commercially brokered deals.
It will be interesting to follow as business evolves everywhere with the ever-changing financial landscape.