The Attias Group Real Estate is encouraged to see that fundamentals are gradually improving in all of the major commercial real estate sectors as reported by the National Association of Realtors (NAR). New Job Creation is the key according to Lawrence Yun, NAR chief economist “Ongoing job creation, which is at a higher level this year is fueling an underlying demand for commercial real estate space.”
“Although we need even stronger job growth, by far the greatest impact of job creation is in multifamily housing where newly formed households striking out on their own have increased demand for apartment rentals. This is the sector with the lowest vacancy rates and strongest rent growth, which is attracting many investors.” said Yun.The Attias Group believes that rising apartment rents also are having a positive impact on home sales because many long time renters now view homeownership as a better long-term option.
Here in the metro Boston area there is a 14.4% vacancy rate for office space, 20.7% for industrial, and 7.1% for retail. These are some of the lowest rates in the country indicating that demand for commercial space is rising and availability is declining across all property types. The Attias Group Real Estate sees these positive trends impacting single-family home prices in Concord. Median home prices have increased 2.7% year over year from June 2011 to June 2012. If commercial space is filling up it means Massachusetts is hiring, therefore the demand for single family homes is increasing.
With the end of the spring market upon us The Attias Group Real Estate has seen incredible market volume, with almost $59 million sold year to date, an increase of 10% over this time last year. A strong commercial and rental market will only increase the buyer pool and increase the likelihood that this coming fall market may be the strongest since 2005.
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