The tone of cautious optimism for commercial real estate in the Boston Metro area continues with the release of the latest Beige Book report.  While the severe winter weather has had some negative effects, most contacts for the report remained generally optimistic about the outlook for commercial real estate in our area.  Here are the highlights from the latest report:

  • Leasing fundamentals in recent weeks held largely stable
  • In Boston’s financial district, a downward pressure on rents was noted
  • Office demand strengthened in the Seaport District
  • Severe winter weather caused a decrease in the amount of office leasing inquiries in the area
  • Investment demand for commercial real estate in the Boston area remains especially strong
  • An increase in planned mixed-use developments and speculative office construction was noted in parts of the Boston Metro area
  • Growth in the institutional sector and the planning of multifamily structures slowed

While the outlook is mostly optimistic, there are a few factors that are causing some concern about future growth in the area.  The uncertainty surrounding the future of interest rates, the rising cost of construction and maintenance costs, and weak employment reports are all concerns to keep an eye on as we progress through the year.

Overall, it still appears that 2014 will be an opportune time to buy or lease commercial space in the Boston Metro area!  Our team is ready to help you find your ideal space.  If you are looking for commercial space to fit your business needs, please contact us today!

Jay Nuss
Jay Nuss Realty Group, LLC
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