Commercial real estate in the Boston Metro area is enjoying healthy demand in the first quarter of 2022, according to reports from the National Association of REALTORS® Research Group. On a year-over-year basis, March net absorption is showing improvement across all core property types, both locally and nationally. Commercial property valuations are also on the rise.
As of March 22, 2022, Boston was the #1 office market in the U.S. Twelve-month absorption in square feet was 3,447,140, with a vacancy rate of 9.6%. Market rent per square foot reached a median of $41. Rent growth for the 12-month period was 1.3%, with a market cap rate of 5.8%.
For the same period, Boston was the #8 multifamily market in the U.S. Twelve-month absorption in units was 13,977, with a vacancy rate of 4.1%. The median asking rent reached $2,576, reflecting year-over-year asking rent growth of 10.8% with a market cap rate of 4.4%.
Boston’s retail commercial market was #16 in the U.S., with a vacancy rate of 2.8%, and market rent per square foot reaching $24.7. Market rent growth for the twelve-month period was 1.3%, with a market cap rate of 5.8%.
As mentioned in a prior blog post, there are situations to watch in the weeks ahead. In the meantime, the resumption of in-person events, and the return of employees to offices, should continue to boost demand for Boston Metro commercial real estate.
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!
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