Boston’s retail market did not experience much change in the first quarter of 2018 and remains strong. There has been a lot of press around the impending doom of retail, but, in my opinion, that is over-hyped. The retail environment is constantly changing – clothing stores are seeing a higher percentage of sales online, but “experiential” retailers are expanding. Here are some highlights of Boston’s retail market:
Boston’s Retail Leasing Market
- Average Rent Rates Increased: +2.7% over Q4 2017, +9.44% over Q1 2017.
- Vacancy Rate Increased Slightly: 3.0%. Vacancy rate was 2.9% in second, third and fourth quarters of 2017.
- Negative Net Absorption: Retail net absorption in Boston in Q1 2018 was -297,204 square feet. This means that more retail space became available than was moved into. The past three quarters all had a positive absorption rates.
Boston’s Retail Sales Market
- Sale Volume Increased: Retail sales activity rose during Q4 2017 compared to Q3 2017.
- Sale Prices Increased: The average price per square foot in Q4 2017 was $203.81, compared to $145.74 in Q3 2017.
- One of the largest transactions in the past year was the sale of the retail block at 201 Newbury Street, which consisted of 24,712 square feet for $75 million, or $3,034.96 per square foot.
Are you searching for retail space in the Boston area? Feel free to browse available retail space for lease and retail space for sale, or contact us for assistance.