2015 has been one of the most exciting years ever for the local commercial real estate market. From technology to life sciences, legal services, healthcare, banking and more, a diverse array of industries are thriving in our region. In fact, no one sector has represented more than 21% of the leasing activity in Greater Boston this year, reflecting a market diversification greater than that of nearly every other major US market.
This broad economic diversity is a driving force in the local economy’s impressive growth. The Greater Boston area has added 215,000 jobs since 2010 and employment has accelerated further since the beginning of the year. The region is experiencing the third highest wage growth in the country at 4.1 percent and is outpacing the national average with just a 3.9 percent unemployment rate.
This strong economy has set the foundation for an even stronger commercial real estate market. In fact, the market reached new peak pricing recently with the sale of 500 Boylston Street and 222 Berkeley Street to Oxford Properties and JP Morgan Chase for $1.3 billion, or roughly $1,000 per square foot. While overall sales volume won’t quite outpace 2014, 2015 is projected to close with just shy of $8 billion in sales transactions.
As a result of all this activity, it should be no surprise that Boston ranks seventh globally and second nationally in JLL’s 2015 City Momentum Index. Perhaps most encouraging, the strong market fundamentals here in Greater Boston point to continued growth in 2016. We will remain engaged in every aspect of the market to deliver the most thoughtful, timely and effective solutions in commercial real estate.
From all of us here at JLL New England, we wish you and your family a happy holiday season and a healthy and prosperous New Year.
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