Boston has made the top 10 US Cities list, where the recovery in commercial real estate is set to soar in 2013 with increases in leasing, pricing and rents across every property sector, according to Emerging Trends in Real Estate Forecast from the Urban Land Institute. The Hub may have been edged out by the likes of San Francisco, San Jose, Texas, Houston, New York City and Austin in terms of job growth, but Boston still scored sixth place in the whole of the United States. This is due to the rise in employment in the areas of high technology and biomedical research and development, which has increased the interest of investors in the city, the report says.
Even though the real estate recovery has been occurring more slowly than is usual, property sectors in the United States will still see better prospects next year in comparison with 2011, survey participants believe. Recent job creation should lower vacancy rates and increase absorption in the industrial, office and retail sectors, assisted by the limited new supply.
The demand for apartments is also expected to continue, according to the survey participants. In addition to this, improving fundamentals should help with net operating incomes and rents, strengthening recent appreciation and building confidence in regards to sustained growth.
Investors need to keep in mind the recent progress that has been made by the industry as they get set for a slow yet steady recovery, says the senior resident fellow of real estate finance for the Urban Land Institute, Stephen Blank. Blank believes that the findings strongly suggest that the industry is moving forward and that those who are patient and willing to adapt to the realities of the market will be likely to come out ahead in 2013.