After a slump in the commercial real estate industry throughout the Metro South area of Boston, many industry experts were thrilled to see the first half of the year pick up in activity and post stronger numbers for the sector. The summer also showed strong gains for the months of July and August. The seasonal upswing in commercial real estate activity was promising for both industry professionals and the business owners who were looking to buy, sell or lease commercial space throughout the area.
The two broadest measures for commercial real estate pricing, the U.S. Value-Weighted Composite Index and the U.S. Equal-Weighted Composite Index, both reflected strong net absorption and demand in the first half of the year. These indices are strong indicators of investment grade and general commercial properties as well as repeat-sales by transaction size or value. The numbers showed a heavy rise in demand since 2010 as well as a slight recovery in commercial property pricing across the board. Most commercial real estate experts have attributed this to a higher investor demand in multifamily properties as well as a stronger investor demand for gateway metro areas.
This positive data has been reason for the commercial sector to celebrate; however now that the season is changing, fiscal fears are mounting and these gains could be coming to a seasonal standstill. Net absorption of office, retail and industrial space slowed significantly in the third quarter, primarily due to a leasing slowdown amongst smaller commercial properties. The recent slowdown in market activity is an indicator that throughout the fourth quarter, there won’t be much happening in the commercial sector. The winter months should see a bit of a standstill in the commercial real estate market in Boston’s Metro South area.
As a commercial real estate agent in Boston’s Metro South area, it doesn’t worry me that there will be a seasonal slowdown in market activity over the next couple of months because it is largely due to the time of the year. The market gains that we have seen nationwide this past year have been very promising, and the commercial market is on stronger ground than it’s been in years. Now is still the right time for businesses in Boston’s Metro South area to start looking for commercial space.
If you have any questions about finding commercial space in Boston’s Metro South area, don’t hesitate to contact me and ask. I will guide you through every step of the process and ensure that you secure the ideal space for your business needs. I hope to hear from you soon!