The Urban Land Institute places Boston at #6 in the top 10 U.S. commercial markets for 2013, per the results of the latest Emerging Trends in Real Estate report. In case you are unfamiliar with it, Emerging Trends is a respected industry outlook for real estate and land use. It has been produced annually for 34 years.
The report includes survey responses from over 900 real estate experts, investors, fund managers, developers, brokers, and more. The report gives us reliable, forward-looking insights to the expected condition of the commercial real estate market for the upcoming year.
According to Emerging Trends, U.S. job creation during 2012-2013 should increase national absorption and push down vacancy rates in the office, industrial, and retail sectors. Apartment demand is expected to remain strong, despite the number of new apartment projects slated to open during 2013.
Pushing the fiscal cliff aside for the moment, improving economic fundamentals is expected to support commercial rents and bolster net operating incomes. Overall, a “slow but steady” recovery in commercial markets and residential real estate is expected to continue nationwide.
Let’s get back to commercial real estate in the Boston area and why it ranks among the nation’s Top 10 commercial markets. According to Emerging Trends, the best residential real estate markets provide the best commercial real estate options. This is because a housing sector recovery generates jobs, which in turn drives up demand for vacant commercial real estate. Simply put, Boston Metro commercial real estate has strength because our residential real estate market has strength.
The report also gives weight to a city’s “infill” capacity, as residential shifts veer away from suburban sprawl and trend towards walkable, urban communities. Ideal locations should have good public transportation access, and have mixed-use development potential, including residential, office and retail space.
Real estate investors give Boston high marks for its growing technology and biomedical sectors, which sponsor job creation and contribute to a healthy urban economy. All told, 2013 looks promising for Boston Metro commercial real estate!
Take a closer look at Boston for yourself! If you are making plans to relocate, begin, or expand your business, I will be happy to help you. With just a few details from you, I can prepare a cost analysis for the square footage, location and building type you are looking for. As your experienced commercial real estate agent in Boston’s Metro area, I will provide you with excellent options for property leases and purchases.
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Wishing you a happy and prosperous New Year,