There are signs of a potential slowdown in the Boston Metro’s office sector, according to a recent article in Boston Bisnow. Landlords are starting to provide tenant concessions in some Class-A buildings that typically rent for a premium. Meanwhile, vacancy rates are creeping higher in the upper strata of the market.
For example, softening office demand is occurring in the Back Bay area, with tenants being drawn to newer developments in the Seaport. The Boston Metro’s Class-A office space vacancy rate is just over 15%, while Back Bay vacancies have reached 16.4%. With a growing selection of Class-A office space available, tenants have been willing to move to obtain lower lease costs.
Analysts point out that the Boston Metro commercial real estate market remains strong overall. A widespread downturn is not expected in the foreseeable future, based on regional economic output and Boston’s employment numbers. However, changes in the global economy, geopolitical events, or policy changes from Washington are always a wild card. The potential of a future recession cannot be dismissed, but it is likely to be generated by macroeconomic forces outside of our region.
The Boston Metro enjoys a robust business climate, supported by a well-educated workforce that is employed in a variety of industries. While this does not make us immune to changes in commercial real estate demand, our market is highly localized, and conditions can vary widely from one city block to another. Tenants seeking office space, or any other kind of commercial real estate, should have professional tenant representation on their side!
When you are ready to begin, relocate or expand your business in the Boston Metro, team up with the Jay Nuss Realty Group! Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. We will provide you with professional tenant representation to help you make the best decisions.
Contact us today for expert guidance!