Boston Metro commercial real estate and business activity continues to show positive trends, according to a Federal Reserve survey of industry experts. The results have been published in the 3rd Quarter Beige Book, and we’re sharing the highlights with you here!
Boston Metro Retail
Strong retail categories include apparel, furniture and home improvement items. Inventories are up slightly, due to continuing optimism for sales growth heading into the holiday and winter seasons. Retail experts project that 2015 sales will show gains between 3% and 8%, compared to 2014.
Boston Metro Manufacturing and Related Services
Most surveyed manufacturers report capital spending consistent with prior planning. There is a wide variety in employment planning and future outlook depending on the industry; while most manufacturers report the outlook as stable, some are scaling back production and have modified expectations for 2016.
Boston Metro Business Services
Surveyed professionals are optimistic about 2015’s fourth quarter, with most expecting revenue growth to be consistent with the momentum of the past several months. Larger professional firms expect mid-single digit growth through 2016. Specialized services in research, strategy and analysis expect robust revenue growth in the double digits.
Across the board, professionals expressed challenges in finding qualified talent to fill new positions, citing difficulty in filling programming, IT, and e-commerce related positions.
Boston Metro Commercial Real Estate
Conditions in the regional commercial real estate market have been stable throughout 2015, with the strongest gains in the office sector. New England cities with a high demand for office space include Boston, Portland and Providence. Lease prices have pushed higher, even as new developments came to market. Strength in retail sales, and in medical and professional services, have contributed to a growing demand for commercial space in Boston.
The outlook for greater Boston commercial real estate remains optimistic, bolstered by domestic and international investor activity. However, geopolitical events and declining oil prices could cause some tempering of future global investment in Boston.
Boston Metro Residential Real Estate
Closed sales of single-family homes and condos increased on a year-over-year basis. In the Boston Metro, the volume of closed home sales in August 2015 was the highest on record, with condo prices increasing more sharply than single-family homes. Overall, August marked the 42nd consecutive month of home inventory declines in Massachusetts. Limited inventories continue to pressure home prices.
It’s time to think about the growth projections for your Boston Metro business! When you are ready to expand or relocate your business, team up with an experienced commercial real estate broker who understands the market. Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. Please contact us today for expert guidance!