Boston, Massachusetts, represents a bustling New England market ripe with viable commercial real estate opportunities in the Northeast corridor. A technology and science research hotbed, the city ranks among the top in the US for entrepreneurial growth and innovation. Interested investors and prospective tenants – both local and nationwide – utilize Crexi to find the ideal Boston commercial property for their needs.
Brokers in Boston and representing Boston assets harness Crexi’s listing capabilities to market and manage properties from list to close quickly. Using Crexi, brokers instantly connect with cohorts of viable buyers and tenants who’ve already indicated an interest in Boston’s marketplace.
As of this writing, Crexi has helped brokers and buyers navigate more than $300 billion in commercial property transactions and marketed assets representing more than $1.3 trillion in value. Crexi is proud to serve Boston, Waltham, Newton, Quincy, Somerville, and the surrounding areas as the fastest-growing online commercial real estate marketplace.
The State of Commercial Real Estate in Boston
Boston is the capital of Massachusetts and the largest city in the state. The city is the economic and cultural hub, home to a vibrant economy driven by scientific research, high education, finance, biotechnology, information technology, and professional and business service sectors.
Boston has been ranked the #1 city in the US for fostering entrepreneurial growth and innovation and is home to the Longwood Medical Area, with over 46,000 scientists and 21,000 students. Through the end of last year, Boston-area startups and tech companies pulled in nearly $1.1 billion in venture capital funding, with biotech startups raising the most money.
With nicknames such as The City and Beantown, Boston isn’t all work and no play. The Boston Symphony Orchestra is ranked among the top five American orchestras, while the city boasts all four major professional sports leagues plus a Major League Soccer team.
Boston Regional Breakdown
Population growth in the Boston metropolitan area significantly slowed during the pandemic, with people opting to live in the surrounding suburbs instead of the urban core. The population of Boston decreased by 0.05% year-over-year, similar to many of the nation’s largest urban areas:
- Boston is home to about 700,000 residents, with over 4.6 million people living in the Boston metropolitan area.
- The population of Boston decreased by 0.05% year-over-year while household incomes grew by 6.45%.
- The city of Boston is the capital and most populous city in Massachusetts.
- Metropolitan Boston is the 10th largest MSA in the country.
- The Greater Boston area is home to other large cities, including Cambridge, Lowell, Providence, Quincy, and Worcester.
- The median age in Boston is 38.8 years, with 55% of the population between 20 and 59.
The Boston Job Market
The job market in metropolitan Boston grew 2.2% year-over-year, helping household incomes to grow by 6.45%. Several high-profile development projects in Boston are back on track, including the $1 billion Fenway Center life sciences campus and Amazon’s expansion in the Seaport District:
- The GDP of the Boston-Cambridge-Newton MSA is nearly $485 billion and has grown by more than 55% over the past decade.
- Boston’s employment growth was 2.16% last year, while median household incomes grew by 6.45% to reach $94,430.
- The unemployment rate in the Boston MSA is 5.0% (June 2021).
- Boston’s job market represents about 16% of the total statewide jobs.
- The largest industry sectors in Boston include health care and social assistance, professional and scientific services, finance and insurance, government, hospitality, and educational services.
- The largest employers in Boston are Mass General Brigham, Beth Israel Lahey Health, University of Massachusetts, The Stop & Shop Supermarket Co. LLC, and Harvard University.
- World-renowned universities and private colleges in Boston include Harvard, Massachusetts Institute of Technology, Tufts, Boston University, Boston College, Northeastern University, and Suffolk University.
- Over 92% of Boston residents are high school graduates, while more than 49% hold a bachelor’s degree or an advanced degree.
- Transportation infrastructure in the Boston metropolitan area includes several interstate and state highways, the MBTA subway system, commuter and freight rail service, the Port of Boston, and Logan International Airport.
Boston Industrial Market
Competition in the Boston industrial market is strong for the best available distribution and production facilities. Demand for industrial and warehouse space in the Boston metropolitan area has remained robust throughout the pandemic, with 65% of the industrial product under construction already pre-leased:
- Total industrial inventory: 143,779,472 SF
- Average asking rent: $7.30 per year, net
- Vacancy rate: 5.2%
- Absorption: 1,366,663 SF through Q2 2021
- New construction: 0 SF delivered (Q2 2021) with 1,971,350 SF under construction
- Largest industrial submarkets: 495 South, 495 North, 128 South, 495 West
Boston Office Market
Slowly but surely, the office market in Boston is improving. Direct net absorption is positive for the first time since the pandemic began, with occupancy rates slowly rising and more street traffic. The amount of office space available for sublet has also begun to decline, both in Boston and Cambridge:
- Total office inventory: 72,062,132 SF
- Average asking rents: $62.75 per SF per year, gross
- Overall vacancy rate: 8.5%
- Absorption: -2,411,030 year-over-year
- Recent leasing activity: One Kenmore SQ 121,000 SF, 320 Summer St 37,800 SF, 500 Rutherford Ave 35,900 SF
- New construction: 4,400,000 SF of office space under construction
- Largest office submarkets: Financial District, Back Bay, Seaport, North Station
Boston Retail Market
Although the retail market in Boston continues to struggle, vacancies remain below their historical average. Lack of supply is helping to keep rent for retail space in Boston relatively steady, with under-construction inventory less than 1% of the existing stock:
- Total retail inventory: 241,397,273 SF
- Average asking rent: $24.18 per SF per year, NNN
- Overall vacancy rate: 3.0%
- Net absorption: 263,793 SF (thru Q2 2021)
- New construction: 34,070 SF delivered (Q2 2021) with 1,247,825 SF under construction
- Largest retail submarkets: Rockingham, Route 3 South, Lawrence/Arlington, Route 24
Boston Multifamily Market
After more than 18 months of negative performance, the multifamily market in Boston appears to be turning the corner. Rents are rising ever so slightly as the job market begins to recover.
Population dispersion and VC funding are two factors influencing the multifamily market in Boston. The core continues to be home to prominent employers and numerous well-regarded educational institutions that should continue to drive the demand for apartments in Boston over the next several years:
- Total housing units: 1,985,813
- Renter occupied: 51%
- Total multifamily units: 933,332
- Average asking rent: $1,714 – $3,654 per month
- Vacancy rate: 5.4%
- New construction: 1,053 units delivered through April 2021, with 18,708 units currently under construction
- Popular multifamily neighborhoods: Allston-Brighton, South Boston, South End Boston, Fenway-Kenmore
- Median household income: $94,430
- Per capita income: $50,421
How Crexi Connects Buyers and Tenants to Boston CRE Properties
Its thriving job market and budding economic development position Boston as an attractive investment option for principals and tenants seeking to expand in the Northeast corridor.
Buyers and tenants utilize Crexi’s open marketplace to freely search hundreds of Boston property listings in the greater MSA. Those interested in investing or setting up business in Boston can use Crexi’s platform to further refine searches by:
- Asset class
- Square footage
- Price/rate per square foot
- Cap rate
- And other filters
Upon discovering the best fit Boston property, buyers and renters can directly connect with the listing broker using Crexi’s secure messaging platform. Interested parties can download brochures and flyers, review offering memorandums (OMs), and even submit a letter of intent all through Crexi.
Intelligence Connects Investors to Data and Market Knowledge
When making commercial real estate decisions, arming yourself with relevant and timely market data is essential. Crexi’s Intelligence offers a subscription-based data service to principals and tenants that equips them with millions of third-party-verified sales comparables and property records, in addition to more than 50 detailed market reports.
The Insights tab, found on every property page, offers a detailed look into any property’s relevant demographic information, average asking prices and square footage in the region, nearby points of interest, and other due diligence data.
Crexi Intelligence seeks to enhance users’ market understanding, reduce research costs, and allow users to make the most informed CRE decisions.
How Boston Brokers Win with Crexi
Crexi’s marketplace features more than 600 Boston properties for sale and for lease within the city limits. Multifamily and retail are among the fastest closing in Boston, while industrial assets and office building transactions are speeding up as the region attracts research and technology businesses.
Throughout Boston, local brokers can efficiently list and market their assets across property types, including:
- Industrial units
- Research and development headquarters
- Office buildings
- Mixed-Use properties
- Manufacturing warehouses
- Retail developments
- Multifamily apartments
- Hospitality buildings
- Non-traditional properties such as data centers, medical offices, utilities, etc.
Boston brokers harness Crexi’s digital tools to manage their clients’ assets from list to winning the deal. The lead-management dashboard allows brokers real-time insights into leads as they interact with their listings. Brokers can also manage all aspects of due diligence and paperwork in a centralized location using the included encrypted file vault.
And while these tools alone are useful, Crexi’s CRE technology fully reveals itself with Sale PRO, Lease PRO, and All PRO.
Crexi All PRO
Crexi PRO accelerates pipelines with a combination of simplifying digital tools, machine-learning powered, and detailed analytics. PRO brokers enjoy automatic preferential placement at the top of Crexi’s search pages, curated by user search behavior to win more eyeballs and higher click rates.
Crexi also sends out email blasts with featured PRO listings, customized and tailored by machine learning to each user’s search behavior,earning a 10-15% higher click-through rate average than non-PRO listings.
PRO Brokers enjoy unlimited access to Intelligence and can take advantage of its detailed property history records and Insights capabilities at no additional cost.
With Crexi PRO, Boston commercial agents can quickly connect with the over 73,000 leads interested in Boston in the last two years — of which 50% came from out of state — and over 3 million leads nationwide searching for property in 2020.
On average, PRO brokers earn 125% more leads and win six-to-eight more contracts than non-PRO users.
Contact firstname.lastname@example.org to learn more about All PRO.