One of my largest responsibilities as a commercial real estate agent in Boston’s Metro South area is to keep track of consumer trends and figure out how they will affect the businesses that could potentially be looking for office space in the area. The better informed I am about the state of the commercial market, the easier it is for me to guide my clients in the right direction when it comes time to look for office or retail space. The most recent report from CoStar, while nationally specific, gave me a lot of insight into what kinds of businesses will be looking for retail space in the area.
In the interest of remaining a trusted commercial real estate resource for Boston’s Metro South area, I thought that I’d share some of the findings of the report in order to help local businesses get an idea of what kind of office space they could be looking for to see success.
• The commercial and retail markets, as a whole, have been seeing fundamental growth throughout the course of the year due to steady job growth. Consumer confidence is up, meaning that more people are starting to enter shopping centers to buy merchandise again. This has made more retailers interested in expanding their storefronts to other metro areas. We could be seeing a few new stores open in the Metro South area.
• The demand for new retail space should stay in check with the low level of supply expected throughout the next few years. Retail space that opens up in the more desirable areas tend to fill up quickly, while open storefronts for lease in less desirable areas fill up slowly. This causes the number of newly-constructed shopping centers, outlet centers and strip malls to go down. These retailers will have to fill the storefronts that are available before we can expect to see more growth in supply.
• More large chains, such as Best Buy and Kmart, will start to fill up these vacant storefronts to stay ahead of the growth curve. The growth of online shopping has caused large chain stores to downsize in staff and merchandise, meaning that they could feasibly move in to smaller storefronts. Smaller chains, such as Marshall’s, will then take advantage of the larger spaces that are opening up to expand their footprint in more metropolitan areas. More retailers, as a result, will be expanding their presence in more areas throughout the nation.
These findings show that new storefronts for your favorite retailers could be popping up all over Boston’s Metro South area. As a commercial real estate agent in the area, I think that it’s important to monitor these trends in order to know which businesses to market my properties to and also to help my clients find the office space that works well for their needs.
If you have any questions about how you should go about finding the right storefront or office space for your Metro South area business, don’t hesitate to contact me! I’d be happy to help you throughout the entire process and use my extensive knowledge of the commercial real estate industry to make this transition as easy as possible for your business. I hope to hear from you soon!