The real estate market has been consistently dismal across the country - and sales in Massachusetts have been no exception - but there is hope on the horizon. The retail real estate market in Eastern Massachusetts has recently taken an upturn, according to a new report released by KeyPoint Partners, a real estate service firm out of Burlington.
After bottoming out early in 2010, many were concerned about the commercial real estate in the Commonwealth, fearing it would reflect the downward trends across the country and the struggling primary residence real estate market within the region. The vacancy rate in commercial real estate at the worst point for the state was 9.7%, and it marked the first decline in the region's retail vacancy since 2005.
The report recently released by KeyPoint highlighted the new vacancy rate - 9% as of the end of April 2011. These new numbers have seen great improvement for the 14-month period over which tracking took place. The vacancy rate was down almost a point below where it was just over a year ago. This significant drop in commercial vacancy is a good sign for Massachusetts business growth and real estate in general, and experts hope the trend continues.
KeyPoint examined 189 Massachusetts communities to track real estate changes and trends, and their final report reflected a significant amount of "big-box" retailers have expanded throughout the region since early 2010. As far as adding square footage for overall retail space, BJ's Wholesale Club, Inc. led the pack of retailers. This included three new locations in Waltham, Hudson and Quincy. The chain is originally out of Westborough, Mass. but recently sold for $2.8 billion to two private equity firms. Other major companies who led the square foot expansion in Eastern Massachusetts included discount chain Target and Ocean State Job, according to KeyPoint.
Not all companies fared well during the 14-month period studied, however. Chains including Blockbuster Video and Borders Books & Music closed their stores in Eastern Massachusetts. Framingham-based TJX Cos. recently disclosed plans to shut down its 162 A.J. Wright stores in the state, although 91 of those are to be converted into similar store formats that the company operates, including T.J. Maxx and Marshalls.
With the retail real estate market bouncing back strongly in the state, experts hope that the primary residence real estate market will follow. The figures were below what many real estate professionals had hoped in the first quarter of 2011. As we reported last month, both home sales and prices had slipped in a year-by-year comparison for the state. B ut new and growing business brings more residents - and ultimately a more robust residential real estate market to the region.
If you are a business owner looking to buy or sell property, or you are simply a homeowner looking to relocate, the experienced real estate attorneys at P&P are here to help. We will guide you through the purchase and sale process from start to finish, ensuring that you receive a fair agreement tailored to your needs. Call us today to schedule a free consultation so we can help you with your latest real estate need.
