Commercial real estate continues to improve across the country, according to the latest Commercial Real Estate Outlook report from the National Association of REALTORS (NAR). The quarterly report reviews statistics on 54 of the nation’s largest markets, including Boston, and examines market trends in office, multi-family, industrial, retail and hospitality real estate. These national statistics echo the positive trends that we have seen from the commercial real estate market in Boston’s Metro area.
NAR expects office vacancies to decline to 15.6 percent by the end of 2013. The markets with the lowest forecasted vacancy rates include Washington, D.C. and New York. Rents for office properties are expected to increase 2.6 percent by the end of the year.
Increases in international trade have benefitted the industrial sector, and demand for warehouse space is up. According to the report, industrial vacancies are expected to decline to 9.3 percent, and rents for industrial buildings are expected to grow 2.4 percent this year.
Retail spaces are also beginning to recover, due to consumers continuing to increase their spending. NAR projects that retail vacancies will drop to 10.4 percent by the end of the year, and retail rents are projected to increase by 1.4% by the years end.
The multi-family market continues to see the strongest demand and lowest vacancies. In this market, vacancies are projected to decline by 3.8 percent, and rents are expected to increase by 4.6 percent by the end of 2013.
The Boston Metro area is an excellent choice if you are preparing to begin, relocate or expand your business. As your commercial real estate agent in Boston’s Metro area, I would be happy to help you begin your search for commercial space. I am dedicated to tenants and buyers seeking industrial and office space in and around the Boston Metro area.
Contact me today for your commercial real estate consultation!