REIS: Boston Retail Holding It’s Own
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|Vacancy rates for Boston retail properties have remained roughly flat over the past four quarters, bouncing up and down by about 20 basis points, says Reis analyst Brad Doremus. Existing properties have been aided by the lack of new space. Between Q4 '09 and Q3 '10, just 40k SF opened its doors and no new space is expected in Q4 '10. In contrast, during the previous six quarters (Q2 ?08 ? Q3 '09) 1.04M SF came onto the market. The 597k SF of new space completed in ?08 was the greatest amount since ?05 and the total for '09 wasn't far behind that of ?06. Not only did Boston retail property owners grapple with falling sales amid economic recession, they also had to deal with heightened competition. A reprieve came this year, but it won't last long. Forecasts point to another large increase in supply of over 400k SF in ?11. While such expansion will ease in future years, don't expect to revisit the lows of '10.|