Changing dynamics could impact commercial real estate markets in the near future, according to a new report by The Counselors of Real Estate, an international trade association. The report’s projections for the next 18 months are based on a multitude of factors. Here are 5 issues that we’ve selected for their applicability to the Boston Metro, along with our insights!
1. Infrastructure. The quality of airports, roads, bridges, utility connections, public transit and Internet service are a concern nationwide. Boston is among the most connected cities in the country when it comes to Internet services. However, we are not immune from aging infrastructure.
2. Interest rates. As interest rates rise, appreciation on commercial real estate property tends to slow. The Boston Metro has enjoyed a robust economy and commercial real estate market for several years. A rising rate environment could slow new development projects, but it will not stall commercial demand.
3. Trade policies. Political wildcards concerning global trade could have a broad impact nationwide. Ports in the Boston Metro would be directly affected by any slowdown in the import and export of goods. The pain would be shared by warehouses, transportation companies, manufacturers, agricultural producers and so on. However, hope remains for a resolution to current trade tensions.
4. Fiscal and regulatory policies. Changes to banking regulations and taxation have been good news for Boston’s financial sector. But in other industries, such as construction, a combination of regulatory burdens have kept gains in check.
5. Disruptive technology. Boston’s educational institutions, corporations and startup companies are creating the robotics, apps and automatons that will change how business is conducted. While disruptive technology will adversely affect some industries and services, it will also lead to new opportunities and exponential growth in the Boston Metro.
Looking for commercial real estate guidance? Team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property.
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