The Worcester, MA retail property market appears to be ripe for savvy commercial real estate investors, but fully capitalizing on the available opportunities is all about execution…
The Greater Boston area is naturally poised to see a boom in virtually all real estate sectors, but retail is certainly shaping up to be the top choice for many sophisticated investors.
Boston has got its mojo back and the city is firing on all cylinders. Unfortunately, while this may ultimately be a great thing for all of Massachusetts Boston’s popularity, fashionable rediscovered status, and booming businesses are also working against it, and global real estate investors.
Property prices and rents have been soaring, but most individuals and corporations are being far more conservative today regardless of how buoyant revenues are. This is pushing more and more outwards, especially towards Worcester. This is also what makes this area ripe for growth and the best real estate returns.
Many of the best gains may have already been seen in residential, and while office and industrial real estate are doing surprisingly well, retail could well deliver the best total returns going forward. This is backed up further by recent data from the International Council of Shopping Centers which proclaimed a 4% year over year rise in chain store sales in September, and projections of comparable stores seeing another similar jump for October 2013.
We’ve recently heard a lot about technology and flex workspace and its impact on local real estate values and being used as an indicator to predict future values. The trend certainly performed well for Regus’ founder Mark Dixon who has ridden the wave from bankruptcy in 2003 to doubling his billion dollar fortune today on the back of it. However, even though there are thousands of startups in the works, they are starting to grow up.
Some of the hottest coworking spaces on the planet like Venture X in SW Florida have been building out and renovating to offer more private and group offices. The next evolution for many of those making it and growing is naturally moving into a retail space. And you can bet Worcester is a hot pin on the map for these companies.
Retail market data and news headlines from REIS show area businesses growing and jobs being added. Based upon mid-year rankings of 190 U.S. markets the data firm also puts Worcester, Massachusetts retail vacancy rates on the same par with Miami, Wilmington, Nashville and Portland. Rent growth was comparable to Charlotte, NC and Palm Beach, FL.
Not only is Worcester retail just now just getting warmed up and may offer the biggest gains and longest run for investors, but even perhaps the safest bet for the most pessimistic investors as those fearing future fluctuations know retail is the last commercial real estate sector to go down.
However, no matter how rosy and appetizing returns and wealth preservation are all about execution and retail property management. Don’t overlook the important of an expert full service Worcester retail property management company for going beyond keeping your units full to securing good tenants and drafting great leases to leverage increases and protect from the downside – this it takes a seasoned sales pro that is on top of the game.