BOSTON—Boston’s retail real estate market continues its strong trajectory despite foot traffic headwinds, Marcus & Millichap said in its latest report.
“Retailers have shown confidence in downtown consumer activity, signaling a promising future,” said Thomas Shihadeh, vice president/regional manager at Marcus & Millichap. “Boston’s retail market continues its strong trajectory, drawing from robust remote work trends and a dearth of new development, keeping the vacancy rate low.”
Marcus & Millichap’s 2024 Boston Retail Market Forecast provides investors with vital insight, and analysis on the current state of the Boston retail market sector including:
- Operations remain tight downtown despite foot traffic headwinds, with major retailers like Dick’s Sporting Goods and Google launching new retail offerings in the Back Bay area.
- Boston was one of the few major metros to see an increase in remote work, a trend that impacts tenants dependent on commuter foot traffic but also presents opportunities for savvy retailers.
- Vacancies in Boston proper has held in the low-2 percent range since early 2021, indicating retailers are backfilling move-outs successfully.
- Supply is constrained with less than 260,000 square feet in the construction pipeline remaining unaccounted for, boding well for a low vacancy rate in the foreseeable future.
- Solid retail performance drives a favorable investment environment across the metro area, with promising signs for investor engagement as interest rates stabilize.
“Solid retail performance and a favorable investment environment across the Boston metro area, coupled with tight conditions and promising signs for investor engagement, highlight a bullish outlook for 2024,” added Shihadeh.
