Diminishing commercial inventory spells opportunity for investors in the Boston Metro Area! A recent article by the New England Real Estate Journal shows absorption rate momentum during the first quarter of 2013. The southeastern areas are looking especially bright. Here is a quick rundown of the trends!
Both asking prices and sales prices for multifamily properties are ticking north, despite increased inventory from distressed assets that came to market during 2012. The average sales price is about $125,000 per unit.
Office space looks very promising, with sales prices up about 10%, averaging $125 per square foot. Inventory in the office market is declining gradually, which bodes well for future price strength.
Industrial properties are remaining stable, with sales prices increasing moderately, averaging $70 per square foot. Inventory in this sector is down by about 6%, which is leading to higher price projections through 2013.
The retail sector has been slower to respond to the upbeat trends. Retail properties are at the lowest price per square foot since 2010, averaging $125 per square foot. This sector felt the brunt of reduced consumer spending during the recession. As consumer sentiment continues to strengthen, the retail sector is expected to improve.
The commercial real estate market in the Boston Metro Area is expected to see higher prices through the balance of 2013, in light of declining vacancies and shrinking inventory. At present, sale prices are in line with the market, and low interest rates are providing excellent opportunities for strategic leveraging.
Please keep in mind that these are averages, and commercial property investments have a wide variety of performance. Also, local factors will impact demand and pricing. If you are considering the purchase of commercial real estate, we can help you make market comparisons to find the best opportunities!
As your expert in Boston Metro Area commercial real estate, we enjoy sharing information that is helpful to commercial property investors and business owners! If you are making plans to relocate, begin, or expand your business, you can trust our experience to guide you.
Contact us today for your commercial property consultation!
Jay Nuss Realty Group, LLC
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