Andover Office Space

Andover is a picturesque town in Essex County. It has a population of about 33,200 residents. It is part of two major metropolitan areas, which are the Boston-Cambridge metropolitan area and the Massachusetts – New Hampshire region. Andover's economy was traditionally based on industry, as are many in the Greater Boston area. As the industrial sector developed, rail and road travel became more essential. Today, those same forms of transportation serve both businesses and residents, which makes the town attractive for living and working. The town is conveniently located near I-93 and I-495. Route 28, another prominent roadway, also runs through the town. Public transportation is available through the MBTA commuter rail, which offers service to Boston. Easy access to both ground transportation and air service, via the Boston Logan International Airport, makes it easy to move both people and goods, which is critical for both population and business growth. Need for living space and work outside of Boston continues to rise, which is an advantage for towns like this, which welcome both residents and businesses.

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The town has several distinct neighborhoods. Pricing is highest in Lowell Junction, Bypass Rd./S. Main St., and Haggets, which are the most expensive places to live. These neighborhoods contain a nice mix of residential dwellings and office spaces, which makes them appealing to both residents and businesses. A growing trend, which benefits prospective businesses, is the willingness of landlords and building owners to sublet space. Shawsheen Village and the Town Center, which are two other neighborhoods, are rapidly growing places with nightlife, new businesses, apartments, and boutique shops. The town's center is situated about 20 miles away from Boston, which makes also makes it easily accessible for tourists visiting from the city. Competition is increasing for space within the town's center, as businesses seek to attract people coming into the area. The Merrimack River, which offers recreational opportunities and supplies the town's water needs, is in the northern part of the city. There are also several recreational areas around the northern border, which adds to its appeal as a popular place to live. The southern and western sides of towns are largely commercial, as they are located close to I-93 and I-495.

Leasing is highly recommended, as the market is one of the strongest in the Boston area, and there is a steady demand for consumer goods. The traditional businesses of medicine, life sciences, education, and personal services like banking, clothing shops, and eateries continue to be in high demand. The economic health of the town's population also indicates that demand for these services will continue. As space in Boston becomes scarcer, companies and residents are looking to live and work outside of the city. Therefore, towns like this one are poised for commercial success in the years ahead. While investors may not have jumped on a chance to aid an incoming business in the past, they are doing so now, as potential in the Greater Boston area is taking off with unprecedented growth. Companies should note that prices are on the upper end of the “average” scale compared to other areas around Boston. Here, it's standard to find a lease rate of anywhere between $1,820 and $3,800 per month. That price yields a space of anywhere between 1,090 SF and 2,300 SF. Many things factor into lease price, including the building's age, size, and intended use. Some are designed for specific uses, such as medical or restaurant space, while others advertise flexibility.

One major advantage of owning commercial space rather than leasing it is that financing property up-front provides a fixed cost. In a growing market like this one, where rental rates are rising by at least 5%, this can translate to substantial cost savings in the future. Furthermore, owners may realize significant tax benefits, such as tax deductions for property taxes, mortgage, and more. For owners who choose to rent out or sublet space, renting portions of an owned property can generate significant amounts of additional income. In the first quarter of 2018, there was over 6.7 million SF of space available in commercial buildings north of Boston. Of that, there was a 9% direct vacancy, and a 9.9% total vacancy. Demand, for the first time in history, was about equal for Class A and Class B buildings. For a Class B property, which is increasingly popular, an average price in this town is about $3 million. This provides about 24,000 SF of space, and offers businesses the opportunity to have a manufacturing business with proximity to local major roadways, or have a hybrid building with corporate space available alongside manufacturing space. The town's rural character means that land is also available. For a plot of land sized 13 acres, an average price is about $895,000.

Given the demand for space in the area, it probably comes as no surprise that forecasters say that now (2018) is a prime time as ever to sell or lease. Fair asking prices, and likewise selling prices, continue to rise. Property owners are getting considerably more in return than they initially paid on their properties. With real estate, however, like selling a car, there are certain factors to consider that you (as an owner/seller) might not even be aware of. That's where it helps to have an expert to help you figure out a good asking price and highlight your property's best features. Contact us for more information, as our experienced staff has the dual advantage of knowing the area and market trends.

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