Friday, July 28, 2017

2017 KeyPoint Report on Eastern Mass./Greater Boston retail real estate trends & analysis - by Bob Sheehan

The following is an excerpt from the 2017 KeyPoint Report on Eastern Massachusetts/Greater Boston.

Supply, Occupancy, & Absorption: This year Eastern Mass. inventory grew moderately, reaching 194.6 million s/f, or an increase of 0.4%. No major center development occurred during the year. The largest gains came from the freestanding 136,000 s/f Life Time Athletic in Framingham and the 82,000 s/f Market Basket in Plymouth. Another addition was the expanded retail area at Prudential Center, to accommodate a 45,000 s/f Eataly food concept and Under Armour flagship. Eastern Mass. experienced a modest decrease in vacant space, with demolitions and mixed-use redevelopment beneficially impacting the vacancy rate. A number of large-space users filling vacant space have contributed to the improvement. These include At Home in Seekonk and Primark in Braintree. Several obsolete buildings that once served as retail space were removed from our year-end inventory. Adjusting for this, the vacancy rate in the region still improved versus last year from 8.8% to 8.6%. The region finished the year with positive net absorption of 1.2 million s/f. Positive absorption is good, but keep in mind that a significant number of announced store closings have not yet occurred.. . . more

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