The Commercial Real Estate sector in Boston is following a very
similar path that the rest of the industry is; it is growing. Urban
Land Institutes Emerging Trends in Real Estate Forecast pegged
Boston as the #6 city Nationwide for the future prospective of a
Commercial Real Estate recovery. Some of the main arguments
supporting Boston with such a praiseworthy ranking is due to the
fact that there is a heightened presence for biomedical research,
development employment, high-tech industries, and finally, the
strong investor interest.
Urban Land Institutes survey showed respondents to be rather
optimistic about the Real Estate recovery as a whole, stating that
conditions are far superior to those from a year ago. Despite this,
it must be noted that overall sentiments still indicate that the
recovery is moving slowly; however a recovery by definition is a
wonderful realization to finally have.
There is a shortage of inventory in new Commercial Real Estate,
however with the job market improving there is an added benefit as
much of the retail, industrial and office spaces are becoming
occupied. The frequency of these forms of transactions in the
market are anticipated to improve even more drastically as 2013
gets underway. Furthermore, investment capitals interest in
Commercial Real Estate with other asset classes offering too much
volatility or even smaller returns.
Finally, the survey highlighted some helpful tips as to where
the best investments currently lie in ones local Real Estate
market. Many of the Downtown Commercial spaces, and even housing
also for that matter, are incredibly expensive and any immediate
appreciation in prices is not likely to occur anytime soon that
would make the investment a sound and lucrative one. On a similar
end, the neighborhoods or districts where there are
low-barrier-to-entry markets present, investment properties will
not be as fruitful due to these areas rapid overbuilding which
diminishes the propensity for higher rental values in the future.
Rather, the more strategic move is to invest in Commercial property
in areas that are a hybrid for hip residential neighborhoods
meeting at the border with new Commercial sectors. It is here where
studies have shown corporations being more likely to pay higher
rents for these periphery locations characterized by generally more
efficient Green designs, and lower operating costs.
More Information: Boston Business
Journal