Our very own Eric Shabshelowitz, Vice President of our commercial department, is speaking at the 2017 Commercial Real Estate Forecast Summit hosted by New England Real Estate Journal on December 8th.
What area of Boston is best to invest in? That is a question we get asked a lot. We are still compiling and analyzing data for our annual investment property report, which provides a comprehensive multi-family analysis. If you would like to receive that report once it is available, please email Eric Shabshelowitz, our VP of Commercial RE. In the meantime, here are some initial observations:
Multi-family prices in Boston have gone up substantially in the past 4 years. In the chart below, the low in April 2012 was $131 and the high in September 2015 was $259. Put another way, the average sale price per square foot in Boston has essentially DOUBLED in the past 48 months.
Boston Multi-Family Sale Price per Square Foot (over last 4 years)
The inventory chart below is also interesting. It shows that total multi-family inventory in Boston has not drastically changed in the past 4 years. While some areas (such as the Back Bay and the Fenway) have seen very few purchase opportunities, inventory in other neighborhoods has clearly risen. This will be discussed in our annual investment property report.
Boston Multi-Family Inventory (over last 4 years)
Contact Eric Shabshelowitz, our Vice President of Commercial Real Estate, if you have questions about Boston's multi-family market.
Boston's retail market also remained strong in Q3 2015. Vacancy was down to 3.7% at the end of the quarter, compared with 3.9% in Q4 2014. Asking rent rates were also up - at $17.83/SF, up 5.38% from four quarters earlier. (Remember, those averages are across the greater Boston area - in Q3 2015, average quoted rent rates were $90.80/SF in the Back Bay and $110/SF in the Midtown/Downtown Crossing area).
As the chart above shows, there is not a great deal of new construction retail space scheduled to be delivered in the next year - and much of what is, has already been committed to tenants.
Sale prices have trended generally up. The chart below is a little deceiving in the sense that it covers so many different areas. However, I wanted to share it because it shows how strong 2015 started for Boston retail (data for the 2nd half of 2015 will be out in the coming weeks).
Contact Eric Shabshelowitz, our Vice President of Commercial Real Estate, if you have any questions about or need help with Boston retail space.
Boston's office market remained strong in Q3 2015. Overall vacancy in the Boston area decreased to 9.1%, down from 9.2% at the end of Q2 2015 and 9.3% at the end of Q4 2014. Vacancy in Boston's central business district (CBD) was down to 7.6%, compare that with Q4 2014 when vacancy was at 8.3%. Interestingly, the vacancy rate for Class A properties is at 9.9% vs. only 5.2% for Class C properties. Rents are also up - in both Boston's CBD and the suburban markets.
There has been a lot of press about the construction boom in Boston. In the first chart above, showing scheduled deliveries of new construction office space, note that most of it has already been leased. One common question is whether it is just companies moving out of old space into new and so it will create vacancy in their old building. However, that has not yet been the case - more office space continues to get leased than sits on the market (net absorption for Q3 2015 was positive 1,152,407 SF).
Investment interest in Boston office property also remains strong. Cap rates continue to stay below national averages. Investors are also dominating the market, as only 7% of Boston's office space is owner-occupied.
Contact Eric Shabshelowitz, our Vice President of Commercial Real Estate, if you have any questions about or need help with Boston office space.
Cabot and Company finds Café Quattro a new space
Vice President and lead Commercial Real Estate broker, Eric Shabshelowitz, recently helped find a new space for the beloved Café Quattro in the South End! Previously located on Somerset Street downtown, Café Quattro thought the South End would be a great landing spot for the new location.
Now situated at 817 Harrsion Avenue near Boston Medical Center, Café Quattro has become a staple for many of the city's medical professionals and South End residents. The Italian-based restaurant boasts a full menu of classics and new takes, garnering the attention of Zagat.
"The menu spotlights hand-tossed thing-crust pizzas, including its signature quattro formaggi and unique variations like pear and parmigiana, plus housemade pastas, panini, salads, soups, and a full espresso menu for a caffeine fix on the go. The menu spotlights hand-tossed thin-crust pizzas, including its signature quattro formaggi and unique variations like pear and parmigiana, plus housemade pastas, panini, salads, soups and a full espresso menu for a caffeine fix on the go." - Zagat
Cabot would give Café Quattro two thumbs up, but we have a slice of the quattro formaggi in our other hand!
Stop into Café Quattro and tell owner, Evan, that Cabot sent you!