CB Richard Ellis anticipates continued growth for New England commercial real estate markets

PROVIDENCE – Workplace trends that favor urban office settings continued across New England cities in 2014, as companies sought premium space that offers convenience and efficiency for employees, according to CB Richard Ellis-New England executives.
The company’s 2015 Outlook for New England commercial real estate markets anticipates continued growth.
New England overall has a vibrant economy, with strong office markets driven by sectors including the life sciences, technology, insurance and other professional services, the CBRE report states.
The New England economy is projected to grow annually by an average of 2.4 percent through 2018, according to the report summary.
Boston, the region’s largest commercial real estate market, experienced additional growth among existing companies in 2014, which absorbed 3 million square-feet in office space last year across the downtown and suburban markets. The Seaport Innovation District retained the lowest vacancy rates in the Boston real estate market, while the financial district recovered, reabsorbing 1 million square-feet in office space despite new building, the report summarized.
Overall, availability in downtown Boston declined last year to an overall vacancy rate of 7.3 percent.
Hartford, Conn., the second-largest commercial real estate market in New England, capitalized on efforts to transform the city into a viable alternative to New York and Boston, the report authors stated, with several relocations to its downtown business district. The Hartford market ended 2014 with a vacancy rate of 15.8 percent.
In Rhode Island, the downtown Providence office market ended the year with a vacancy rate of 15.2 percent, slightly less than that for the overall market. Rhode Island’s commercial real estate market also improved in 2014, with space generally tightening across the downtown and suburban submarkets.
Venture capital also continued to flow into New England, making it the third-largest market for capital investment in the U.S, second only to greater New York and the Silicon Valley, according to CBRE.
The New England region attracted $3 billion in investment through the third quarter of 2014, with 320 companies receiving funds, CBRE stated.

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