Back Bay Retail Space - For Rent & Sale

The metro Boston retail market is flourishing lately. The right retail or commercial space can help your business lay the groundwork for success, and you can't go wrong by setting up shop in the Back Bay. Arguably the most prestigious neighborhood in Boston, the Back Bay offers exciting opportunities for retail businesses offering all kinds of goods and services. Boston City Properties maintains constantly updated listings for Back Bay retail space, making it a breeze for you to locate the optimal home for your business.

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Retail Space

About Back Bay Commercial and Retail Space

Whether you already rent or own a location for your business elsewhere in the city or will be opening your doors for the first time, it is crucial to have the right help when looking for a new spot. That’s especially true in a highly competitive market like this one. Boston City Properties can help you in a variety of ways to zero in on promising options in no time. From up-to-the-second listings for square footage for lease or sale to referrals to skilled commercial real estate agents who specialize in these types of locations, we’ll arm you with everything that you need to make a strategic and informed decision. From Boylston Street to Newbury Street Boston City Properties has you covered.

Buy or Lease Retail Space in the Back Bay with Boston City Properties

At first glance, locating the right retail space in the Back Bay may seem like an insurmountable task. The picture becomes much clearer when you have useful and accurate information at your fingertips, and Boston City Properties provides that and a lot more. Regardless of the type of retail lease you want or the kind of commercial mortgage you need, our leasing and property experts can help you locate Back Bay commercial and retail space that fills the bill perfectly. Accessing this information is as simple as signing up through our website. You will then be able to browse or search our Back Bay retail space listings to find the perfect option, so get started now.

Are you looking for square footage to lease or buy for your shop or other business in this prestigious Boston neighborhood? There is no point in sugar-coating it: It is usually easier said than done—especially these days. More than ever, this prime downtown district is regarded as the premier shopping destination in Greater Boston. Accordingly, vacancy rates remain low, and asking rents remain among the highest in the city. Never fear, though—when it comes to finding a suitable location here to peddle your wares, Boston City Properties has you covered.

Market Overview

When looking for a commercial spot to buy or lease anywhere, it helps to have at least a basic understanding of current market conditions. If you’re not a real estate professional, however, how are you supposed to know what’s happening in a specific submarket? Here’s a quick rundown of how the market is looking these days.

First, it is important to note that this neighborhood has long been the de facto shopping destination for visitors and locals in the city alike. Upwards of 18 percent of all Boston jobs are located here, and more than 22,000 people call this tiny geographic area home. The fact that more than 50 percent of the city’s hotels are found here reflects the neighborhood’s prominence as both a commercial and business destination.

These points matter because they affect the way that this submarket functions. The last few years have seen activity start to level off a bit, but there is no question that the neighborhood’s upward trajectory in terms of commercial success continues. Lately, more out-of-state and foreign investors have descended upon property deals here, and Mayor Walsh has both expressed and demonstrated an ongoing commitment to keep the area thriving well into the future.

Asking rents in this neighborhood have been on the rise for several years now. For a few years there, they were increasing by a rate of around 10 percent per year. This rate of growth has settled down to some extent lately, but rents here continue to be among the most expensive in the city.

In most business districts in the city, vacancy rates remain near and even below 10 percent. Most recently in this prime downtown district, they’ve been closer to 12 percent. As of the fourth quarter of 2017, there was a total of around 13.36 million square feet of commercial real estate. Of that figure, only around 1.4 million square feet was available. Like most people seeking this type of location here, you probably have very specific requirements. With pickings these slim, zeroing in on the right thing is even more challenging than usual.

As far as the outlook going forward for this submarket, there’s no question of its continued dominance. Across the city and especially in this area, commercial activities like shopping continue to flourish. This is true despite the ongoing rise of online shopping. This neighborhood has demonstrated that people still want to have experiences, and that includes actually going into brick-and-mortar stores and shops. Ironically, in fact, much of the upswing is coming from internet companies, which are starting to move into the area in increasing numbers.

What to Expect

This neighborhood is small and often has limited offerings largely for this reason. Strict ordinances are in place to preserve historic architecture, so in areas like Newbury Street, businesses are often located in Victorian brownstones and the like. Most businesses in this area thrive off of foot traffic, so this is an excellent place to look if that is what you need.

Commercial footage in this part of the city tends to be fairly compact in size, as most buildings are small themselves—as with the brownstones. Particularly along Newbury Street, most merchants make due with well less than 2,000 square feet. Another factor to keep in mind is the high availability of so-called uppers and downers: places that are situated about a half story above or below street level. While this type of area offers less exposure, it is typically a lot more affordable than the going rate for street-level frontage.

While this neighborhood is largely known for its historic district of refined brownstones, where much of the commercial footage is found, it also has a more modern side. Some of the city’s best-known towers, including the Prudential Center and the John Hancock building, are found here. Many such buildings offer prime street-level commercial square footage. Such locations may also be found in mixed-use buildings, which are increasingly dominating here and across the city too.

Prices

In addition to finding a location that suits the goals of your business—for example, perhaps your top priority is having street-level exposure to foot traffic—price is one of the most crucial factors when embarking on this journey. Needless to say, the first step is to establish a conservative and realistic budget. Note that after doing so, you may learn that you are simply priced out of this submarket. If this occurs, don’t worry—just contact Boston City Properties, and we will help you find comparable square footage in nearby areas.

Asking rents for square footage in this part of the city have been on the rise for many years now. This will likely continue, as demand remains strong for prime shopping destinations. This trend is also bolstered by ongoing population growth, continuing median household income increases and an increasing trend toward living downtown near services and activities rather than out in the suburbs.

If you look at asking rents for this type of square footage across the city as a whole, you will find that they have remained near $18 to $22 for some time. However, this is misleading due to the huge variations in prices between neighborhoods. Asking rents in prime downtown business districts tend to be much, much here. In this area, for example, it’s not unusual for rent to exceed $100 per square foot; many places lease out for upwards of $150 per square foot, in fact.

Factors Affecting Prices for Commercial Square Footage

The plain fact of the matter is that regardless of what kind of spot you need in this neighborhood, it is going to cost you more than the average going rate citywide. With that being said, many other factors come into play to influence how much you will spend to lease square footage for your shop or other business here in what’s often referred to as the “Rodeo Drive of the East.”

An important thing to keep in mind from the outset is that comparing prices for commercial square footage in any part of the city is confusing in that different lease types are calculated differently. Boston City Properties can refer you to an agent who can explain this to you in greater detail. With a gross lease, for example, the tenant pays a flat rate that covers all expenses; this is the rarest type. Net leases typically lease tenants responsible for various costs. With a single-net lease, the landlord covers everything except for a share of the taxes. With a double-net lease, the landlord covers everything except a share of the taxes and the insurance. With a triple-net lease, the tenant is responsible for a share of taxes and insurance along with maintenance and utilities.

Note that most listings show prices based on a triple-net lease, but always read the fine print or contact Boston City Properties for more information.

Additional factors affecting the cost of leasing a spot in a prime commercial area like this include:

Proximity to foot-traffic generators – The closer that a location is to places that draw in a lot of foot traffic, like anchor stores, the pricier its rent will likely be. Other examples of elements that generate significant foot traffic include mass transit stops and college campuses. It makes sense for rents to be higher, as such locations get a lot more exposure and are therefore worth more to a business.
Building conditions – This factor doesn’t come into play quite as much in this part of the city, as commercial locations here tend to be housed in well-maintained buildings. In fact, many are found in landmark buildings that command high asking rents simply for their prominence. Still, buildings that have deteriorated a bit tend to offer more affordable leases than those that are in tip-top shape.
Lease terms – With so many things up in the air, including an ongoing influx of new residents and businesses and even business types into the area, many landlords in this part of the city have been experimenting with month-to-month leases. These are least favorable for tenants because they tend to be the most expensive. In general, the longer a lease’s terms are, the more affordable the price.
Size – While buying more sometimes saves you money, that concept goes out the window in this part of the city—at least in terms of leasing a prime business location. Funnily enough, the smaller the location is, the costlier it’s likely to be per square foot. Shops here tend to offer limited amounts of square footage, so prices are higher still than in many parts of the city. You would be hard-pressed to find more than 2,000 square feet available in any one spot.
Uppers and downers – As mentioned before, this neighborhood has a high concentration of uppers and downers—square footage that’s situated a half-story above or below street level. These are more easily missed by pedestrians, and they don’t usually have large windows for displaying wares. As a result, asking rents tend to be lower. This may be a good way to find something that does suit your budget, so contact Boston City Properties for a referral to a local agent.

Market News

Due to its prominence as a commercial hub, there is always a lot going on in this neighborhood in terms of real estate. You can always check with Boston City Properties for the latest developments concerning this submarket. One ongoing story involving this neighborhood concerns Wayfair, the internet giant. The company has been based in Boston all along, but it is now poised to invest further in the city in a truly big way.

In one fell swoop, Wayfair will become one of the largest tenants in the city when it wraps up its latest expansions. The retailer of household goods, furniture and related items has experienced massive growth and is currently seeking upwards of 1 million square feet in this part of the city. To put that into perspective, they would have to lease out three-fourths of the Prudential Center to do so. The new location is about three times the size of what the retailer worked with previously. Wayfair currently employs around 3,500 people, but the company has reported that it will be adding more than 10,000 jobs along with these expansions.

The news about Wayfair is exciting, of course, but when it comes to developments in the commercial submarket, Amazon has really been dominating. While nothing is set in stone yet, the online giant is getting more and more serious about pulling the trigger. The implications for Boston will be huge, and that includes for businesses, landlords and tenants in this upscale neighborhood. The effects of population growth have already been apparent across this submarket for some time and that will only intensify if Amazon ends up moving in.

How Boston City Properties Can Help

Whether you’ve already taken some time to get your bearings or if you’ve only just started looking into the situation, finding square footage to buy or lease for a business in this fast-paced, highly competitive submarket is easier said than done. Market conditions change frequently, and a single big event—like having a huge company like Amazon come to town—can upend everything quickly. It is crucial to not only have access to useful information about available properties but to know where to turn for ongoing information concerning the market and more. For all of this, turn to the experts at Boston City Properties.

Some of the ways in which our team can assist you in locating a good spot for your business here include:

Constantly updated real estate listings – With information continually pulled from dependable sources like the MLS, Boston City Properties’ listings are among the most comprehensive around. They include listings for commercial properties in neighborhoods across the city, including this one. When you peruse listings, you will find that they are loaded with tons of useful information, and they include plenty of photos. Right away, you can learn the basics about a property and go from there.
Powerful search capabilities – Even when vacancy rates are low and pickings fairly slim, sorting through what is available can be confusing. Complicating matters is the fact that deals happen in the blink of an eye. Something that was available this morning may be gone this afternoon, and exciting new listings appear frequently. Our search tool puts you in control by first allowing you to select your desired search area. You can then refine things even more by adjusting filters for things like square footage and price. There is no easier way to see what’s available in terms of sales-oriented square footage in this fast-paced market.
Agent referrals – You can get pretty far in your search simply by relying on the vast online resources that are offered by Boston City Properties. At a certain point, though, you’ll want to get out there and see properties in person. When you’re ready, contact us to get referred to a skilled and experienced commercial real estate agent in this part of the city. This professional will know the nuances of this complex submarket and can assist you in lining up tours, handling negotiations and so much more.

While finding the right location for your business in this prestigious Boston neighborhood may be complicated and even confusing, the effort will pay off when you can set up shop in one of the hottest commercial districts in the city. No matter where you end up leasing or buying, you can rest assured of incredible exposure for your business. By availing yourself of the many resources that are offered by Boston City Properties, you can save yourself untold amounts of time and effort. Do yourself a favor and sign up to search our listings now!

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Retail Space