The new year is approaching, and predictions are beginning to surface for the future of commercial real estate in 2014. Predictions are generally positive for the upcoming year, forecasting increases in rental rates and rising investor activity. Recent articles published by GlobeSt.com and the National Association of REALTORS® (NAR) outline some of the predictions for commercial real estate in 2014.
An increase in employment in the science, technology, engineering and mathematics fields is contributing to a decrease in vacancy rates and increases in investor demand across the country. Investor sales volume increased greatly in 2013, and is expected to continue to rise and extend into secondary markets in 2014.
As for the retail market, vacancy rates are expected to continue a slow decline over the next year, and rental rates are expected to increase. The industrial market should also see continued rent recovery and decreased vacancy rates in the next year due to the increased leasing activity of small and mid-sized companies.
Growth in the energy and technology markets should prove positive for the office sector, especially in markets with diversified economies. According to the NAR, office rents are expected to continue to increase 2.8 percent in 2014.
Predictions are also positive for lending conditions – it is expected that the overall lending environment should remain positive in the coming year, despite a predicted increase in interest rates. Affordability should remain high when compared to a historical perspective.
2014 should prove to be an excellent time to buy or lease commercial space in the Boston Metro area. If you are making plans to relocate, begin or expand your business, I would be happy to help you. With just a few details from you, I can prepare a cost analysis for the square footage, location and building type you are looking for. As your experienced commercial real estate agent in Boston’s Metro area, I will provide you with excellent options for property leases and purchases. I look forward to hearing from you.