Boston Metro commercial real estate enjoyed strong performance in 2019, with low office vacancy rates and soaring demand for laboratory space. Our commercial real estate has been on a roll since the end of the Great Recession, and has picked up steam with the economic expansion of recent years.
Yet even as construction cranes dot the region, some developers are sounding cautious about the future. According to Boston Bisnow, certain pressures may affect future growth. These include the impact of newly-proposed regulations and fees, along with the challenges of traffic congestion, rising construction costs and limited development space. Nationally, there is also concern about the variables of geopolitical events, extreme weather and the uncertainties of an election year.
So far, Boston area developers have endured cost increases handily, thanks to persistently-low interest rates and a healthy influx of investment capital. But construction costs have been escalating year-over-year, and additional expenses on any front could reduce the margins on major projects. Competition for development space is expected to accelerate, which will keep raising the price tag on new projects.
Fortunately, economic forecasts for 2020 appear bright, with projections of low interest rates and steady employment numbers for the foreseeable future. Additionally, the Boston Metro holds the advantages of a young, highly-educated workforce, along with a diverse array of industry and high-tech employment opportunities. Our many institutions of higher learning attract the best and brightest students from around the globe, which helps keep the local cycle of innovation and business growth humming along.
The Boston Metro offers many quality choices for 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.