Last year, Massachusetts ranked ninth in the nation for direct commercial property development spending. According to commercial real estate development association NAIOP, approximately $3 billion was spent on commercial property construction in the state in 2011. The increase in commercial development bumped the state up to the top ten from its 2010 nationwide expenditure ranking of 21st in the nation. In Massachusetts, more than 41,000 jobs were reportedly supported by the 2011 increase in commercial development.
In Boston alone, ground was broken on 26 new projects in 2011 which included a $220 million residential tower downtown, Avalon Exeter residences in the Back Bay, a new dorm and educational facility at the Berklee College of Music, and a new headquarters for Vertex Pharmaceuticals at Fan Pier. The Director of Government Affairs at NAIOP Massachusetts, Tamara Small, stated 2011 development spending signaled the beginning of a state-wide commercial real estate recovery. She also cautioned that policies designed to encourage continued sector growth must remain in place.
According to an NAIOP Research Foundation study entitled How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2011, commercial property construction expenditures throughout the nation totaled about $92.3 billion last year. In 2011, more than 238 million square feet of commercial real estate space was added nationwide. The NAIOP research report stated approximately 2 million jobs were created throughout the country to support building the additional space. The additional commercial space reportedly has the potential to house an estimated 610,000 employees. Nationwide, commercial real estate development spending was up about 13 percent over 2010 and added approximately $261.6 billion to the nation’s GDP. 2011 was the first year in which overall gains in commercial development spending were reported since the so-called Great Recession began in 2007.
If you are considering purchasing Massachusetts commercial real estate in the near future, it is important to keep in mind a number of key issues. First, you should ensure the property you are considering may be used for its intended purpose. You should also find out whether there are any liens on the property, and ensure favorable financing is available. To protect your financial interests, it is always a good idea to speak with a knowledgeable Boston real estate lawyer before you begin the commercial property purchase process.
Contact Pulgini & Norton, LLP today if you are thinking about buying or leasing commercial real estate in Massachusetts. Our dedicated Quincy commercial real estate attorneys are available to assist you throughout each step of the purchase process. We are available to help clients throughout Massachusetts with all aspects of a commercial real estate transaction, including purchase agreements, lease agreements, financing, property development, and zoning. To speak with a skilled advocate today, call Pulgini & Norton toll free at (888) 344-2046 or contact our hardworking attorneys through the law firm’s website.
Mortgage Rates Reach Historic New Lows in Massachusetts, Nationwide, Massachusetts Real Estate Lawyer Blog, May 4, 2012
Bidding Wars on the Rise in Greater Boston Residential Real Estate Market, Massachusetts Real Estate Lawyer Blog, April 27, 2012
Mass. commercial real estate spending hit $3B in 2011, by Thomas Grillo, Boston Business Journal
Commercial Real Estate Development and Construction Rebounds in 2011, NAIOP Press Release dated May 1, 2012