Will Global Events Affect Boston Metro Commercial Real Estate?

At the beginning of 2022, Boston Metro Commercial real estate investors had the usual concerns about finding the ideal property. Just a few months later, decisions are complicated by worries about inflation, rising interest rates and geopolitical events. Managing the pandemic was just a warm-up!

Yet there are reasons to remain optimistic about business conditions and commercial real estate in the Greater Boston area. First, our market is less volatile than other areas of the country. This was true during the Great Recession, and it remains true today. For example, industrial sector vacancy rates in the Boston area hit a record low of 1.5% at the end of 2021. The Boston Metro multifamily sector has a vacancy rate of just 4.5%. Burgeoning demand for lab space and bio-manufacturing facilities, combined with a healthy office market, keeps us well-positioned in the face of global headwinds.

There also tends to be a “flight to quality” when investors grow nervous. Again, this is where the Boston Metro holds advantages over more speculative or transitioning markets. And unlike stock market investors who can sell assets with a tap of a button, commercial real estate investors are in it for the long haul.

Finally, while foreign investment is very active in the Boston Metro, little of it comes from nations under sanctions. This doesn’t mean our market is completely unaffected by global events; rising costs in goods and materials will impact construction costs and business operations. In turn, this can eventually affect commercial real estate performance when it comes to cash flows and the costs of doing business. But with a diversified, high-tech economy such as ours, there may be no better market to ride things out.

When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property!

Contact us today for expert guidance!