The National Association of Realtors released its 2014 Commercial Market Profile and found that despite challenges in the market, the commercial real estate sector is improving. This is great news for business owners and for overall economic growth here in the Boston Metro area.
The findings for the first quarter of this year included:
- Increase in median sales transaction volume, up 11 percent
- Highest gross annual incomes since 2008, up 4 percent, and fourth year in a row for increases
- Improvements seen in leasing, lease rates, rent concessions and deal values
As NAR President Steve Brown stated, “Despite a government shutdown, regulatory changes and a budget sequestration, ongoing job creation has helped the commercial market make continued progress.”
George Ratiu of NAR Research reported that consumer spending was up 3 percent in the first quarter. Because of continued growth in consumer spending and jobs, NAR predicts continued growth in the commercial real estate market in the second quarter of this year. Demand for space, vacancy rates and financing sources are all improving.
Brown stated that a strong commercial market is a good indicator of a recovering and growing economy. This is great news for Boston Metro area business owners and residents!
An improving commercial real estate market means that local Boston Metro residents can expect new businesses to open their doors and offer new products and services. This also increases the value of the community and is a solid predictor for a thriving future in this area.
With new businesses comes more revenue for the Boston Metro communities, and job growth. More revenue could mean improvements to local school systems, roads, parks, bike paths, safety and security, amenities and more. The two go hand-in-hand in creating a better place to live and work.
Are you ready to find commercial space for your Boston Metro business, or to relocate into a bigger or better space? Contact us, your commercial real estate agents in the Boston Metro area! With over 30 years of experience in this field and this area, you can trust us to smoothly pull together the whole commercial buying process.