As we have discussed previously, the Beige Book is among the key financial reports distributed in the media. The report is published by the United States Federal Reserve Board eight times a year.
The most recent report has been published, and we have the highlights for you here as they relate to commercial real estate in the Boston Metro area.
- In Boston’s inner-suburban corridor, office rents are up and vacancies down.
- In Boston proper, prime retail rents are up at least 5% over the quarter.
- Office fundamentals continue to improve across the city – slowly in the financial district and more quickly in the Seaport/Innovation district.
- Values for prime downtown Boston properties continue to rise, and investors are purchasing empty retail space in Boston since the onset of the recession.
- Regional lenders indicate that commercial real estate loan demand has rebounded, as competition for such loans drove mortgage interest rates to new lows.
- Business leaders are mostly optimistic that commercial leasing fundamentals will continue to improve at least slowly in the coming months.
The outlook for commercial real estate in the Boston Metro Area is mostly optimistic, given the market conditions outlined in the latest Beige Book report, and the demand for commercial real estate should continue to grow in the coming months.
If you are preparing to expand or relocate your office, or are in need of commercial space for your new business, we would be happy to help you! We specialize in representing small to medium sized companies requiring new space. You can rely on our extensive knowledge of the Boston Metro Area commercial leasing market to guide you through the entire search, enabling you to make the move with ease. Please contact us today to find the right space for your business needs!