MANSARD, a high-volume commercial real estate brokerage based in Boston, and active in the Boston, Massachusetts, and New Hampshire commercial real estate markets, has released an update to its Boston commercial real estate trends, which examines the state of the retail, office, and industrial real estate market in the greater Boston area and finds that, while not sustaining the record pace of 2018, maintains the overall strength and value that could be expected during the present mature phase of the market.
Boston, MA — MANSARD, one of the highest volume commercial real estate brokerages in Boston according to the Boston Business Journal, has released an update to its Sales Trends to Watch, which provides a look at Boston commercial real estate market sales trends. The update examines trends in the city’s retail, office space, and industrial real estate sectors based on sales data from the preceding quarter.
According to the update, while 2019 is on pace to end seventeen percent above the long-term average for Boston Massachusetts commercial real estate news is that it will be lower than 2018, which was a record-setting year, with $1.728 billion in overall volume for properties in the $1-20 million range. However, while the number of individual sales this year, 373, is lower than last year, which saw 443 sales, the overall dollar value per transaction remains high, indicating a strong valuation of commercial properties.
In particular, industrial space is trading around forty-three percent above its long-term average, which MANSARD takes as further evidence that this is the strongest industrial real estate market in Boston’s history. By comparison, office space is trading about five percent above its long term average, and retail is trading nineteen percent over its long-term average.
The market has been augmented by the Federal Reserve Bank’s decision to lower interest rates in 2019, which has had the effect of prolonging the market’s sales trends. Volume has remained high, but a flattening of appreciation is expected into 2020.
The retail commercial real estate market continues to appreciate. For retail property valued between $1 million and $20 million, the average price per square foot remains at $221 per square foot, and average rents for retail space are $23.20 per square foot, which constitutes an increase of 15.39% over the course of last nine years.
Suburban office space with a value of between $1 million and $20 million has maintained its value. Historically, suburban Boston office property valued between $1 and $20 million sees an average of ninety-six sales per year, while the sales of office property in the greater Boston area have been above that long-term trend since 2014.
About the Company: MANSARD is one of the highest volume commercial real estate brokerages in the Boston market. While investing in commercial real estate creates durable wealth, but it can also be difficult for owners to find the right buyers for multi-million dollar properties who perform. Over the last 18 years, they’ve become experts in high-value Massachusetts and New Hampshire commercial real estate news is that they have negotiated the sale of more than 1,000 properties for our clients, which is why 81% of our sales come from repeat business.
Name: Jeremy Cyrier, CCIM
Address: 14 Essex Street Andover, MA 01810