Despite the woes of some national chains, the demand for retail space in the Boston Metro and other premium markets is on the upswing. According to CBRE and REBusiness Online, lease prices are increasing by 4% or more in areas where strong retail activity is present. Locations in Miami, Jacksonville, and Oakland are seeing double-digit increases.
Industry analysts have recently upgraded the national retail sector outlook to “positive” for the first time in three years. The optimism comes amid a strong economy and rising wages. Consumer spending is predicted to rise about 6% during the 2018 holiday season.
Yet the challenges facing the retail sector are far from over, and the recovery is uneven. Multiple national chains are struggling with ballooning debt and changing consumer preferences. In locations where foot traffic and retail sales have been declining for years, anchor store closings have accelerated a negative trend. Such is the case in cities like Cleveland and Indianapolis.
In commercial real estate markets like Boston, which offer advantageous demographics and robust consumer activity, anchor store closures are less likely to create a domino effect. Retail space is competitive in high-demand areas; retailers want to be where other successful retailers do business. Many of these markets have reached development capacity. Landlords can command a premium in these locations, making tenant representation a must.
Retail is undergoing an evolution, giving rise to merchants who compliment online sales with brick-and-mortar locations. Retailers who offer experiences beyond shopping have reinvented themselves as social and recreational destinations. Boston’s Seaport District is an example of modern retail diversity within a mixed-use development.
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 or leasing Boston Metro commercial real estate, we can help you find the ideal property. Contact us today for expert guidance!