Most retail rents in Boston are quoted in terms of rent per square foot per year. For example, leasing a 1,000 SF space for $60/SF would mean the annual rent is $60,000 - or $5,000 per month. Most retail leases in Boston are triple net (or NNN), meaning that the tenant also pays all or a portion of the real estate taxes and common area maintenance (CAM) for the building.
Market Rent for Retail Space ($/SF)
Source: CoStar, January 24, 2020
Boston's Back Bay, driven mainly by Newbury and Boylston Streets, is still the priciest neighborhood in Boston. The average numbers shown above are just that - "averages" - and we see deals close above these levels on Newbury and Boylston Streets. Overall, neighborhoods/areas have mainly all followed a similar cycle. As the chart shows, retail rents in most areas are expected to level off and remain steady for the next few years.
The "best" retail location for a business is not necessarily in the neighborhood offering the lowest rent. It's great if the rent is lower than in other neighborhoods, but your sales must still be strong enough to support the rent (generally speaking, rents are lower in areas where most businesses expect sales to be lower due to various factors, such as foot traffic and daytime population). As part of your site selection process, it is important to consider your target consumer(s) and determine whether you will be able to effective reach/serve them at the locations you are considering. This is something we are happy to help you evaluate and consider - feel free to contact us to discuss.
Are you searching for retail space for lease in Boston? You can start your search here.