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Boston Retail Space Market 2017 Report

Nineteen retail buildings were completed during the first quarter of 2017. This resulted in an addition of more than 140,000 square feet in Boston retail space. This development has continued a trend that was evident in 2016. During the second quarter of 2016, 24 buildings equaling more than 755,000 square feet were added. Twenty-five structures were built during the third quarter of last year, adding over 226,000 square feet, and 26 buildings accounting for more than 306,000 square feet were completed during the fourth quarter. More than 2.7 million square feet of retail space was under construction at the end of the first quarter of 2017.

With these recently completed retail center construction projections, the retail space in Boston exceeded 338 million square feet in nearly 28,000 buildings and almost 2,000 centers by the end of the first quarter of 2017.

Here are some of the most significant additions to the Boston retail market:

Planned Retail Development Projects

Easy access to new retail space is critical. Customers, suppliers and employees all must be able to reach new stores amid neighboring retail development. Because of this fact, areas located along Route 495 and Route 128 are prime development locations as well as highly sought after retail rental spots. More than half of scheduled retail development is located along these routes.

Here are some planned retail developments in the works:

Investing in the Boston Retail Real Estate Market

Given the booming retail real estate market in Boston, you may be wondering how to get a piece of the action. The growth indicates that there is money to be made from smart investment decisions.

Those interested in investing in Boston retail space should begin by talking with a qualified retail real estate agent. Tap into the knowledge of others who are familiar with the market before you make a significant investment. Professionals can also help you manage the details of the actual transaction once you've found your investment property.

Take a look at market prices for typical Boston retail space over the course previous quarters as part of your research.

For instance, if you look at retail space that is at least 15,000 square feet, you'll find that price per square foot dropped between the third quarter of 2016 and the fourth quarter of 2016. During the third quarter, 31 buildings were sold for a total of $434.4 million. This represented about 2.1 million square feet, which translated to a price of $198.87 per square foot. Looking at the same metrics during the fourth quarter, you'll find that 30 buildings were sold for $231.7 million. These units totaled 2.6 million square feet, but the price per square feet dropped to $87.86.

One investor recently decided to purchase a large retail building on Great Road. This major transaction closed at the end of 2016 and involved the sale of Brookshire Shops. The 75,000-square-foot facility sold for $33.5 million, which amounted to more than $442 per square foot.

Another investment decision was made by the Hampshire Company, which purchased the 84,000-square-foot BJ's Whole Club in Quincy. Located at 200 Crown Colony Drive, this building is viewed as a good investment because of the possibilities of expansion into a multi-use complex with the addition of residential development.

Once you've selected your property and closed the deal, you may want to hire a professional property management company to help ensure that your new investment stays in excellent condition and to help manage tenants who will be occupying your new space.