Beacon Hill Retail Space - For Rent & Sale

Opening a shop in Beacon Hill? If you own a business and are in the market for Beacon Hill retail or commercial space, the first step is finding a source of accurate, timely information. Boston City Properties' listings provide that in spades, and they are completely free to use. After signing up, you're free to start searching and browsing for properties that suit your budget and needs. Whether you want space on Charles Street or along one of this prestigious neighborhood's other busy thoroughfares, our team of retail space leasing experts is here to help.

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Retail Space

About Retail Space in Beacon Hill

As one of Boston's most upscale and desirable neighborhoods, Beacon Hill is a great place to open a business. Commercial and retail space here spans a variety of options, making it relatively easy to find a property that suits your business's needs. Many considerations must be made when investing in retail space of any kind, and Boston City Properties' retail space buying and leasing experts can walk you through the process to ensure that you find the right space the first time. In addition to things like size, layout and location, the types of leases that are available for a given property should be considered too. We will help you locate commercial and retail properties that suit your specifications to a T.

Lease or Purchase Beacon Hill Retail Space with Boston City Properties

Beacon Hill is an excellent choice for businesses in many industries. Commercial and retail space here goes on and off the market quickly, so it's crucial to have access to up-to-the-second information. When you sign up for access to Boston City Properties' free, convenient listings, you arm yourself with the information you need to find a great space for your business. Boston City Properties is the authority when it comes to Beacon Hill retail space, so sign up now or get in touch with us today.

If you are looking for a location for your business in this upscale Boston neighborhood, you probably already know that you have your work cut out for you. At roughly 1 square mile in size, it is among the smallest neighborhoods in the city. Unlike many other downtown core areas, it leans more toward residential than commercial. As a result, pickings for commercial square footage are slim at best. Under the current real estate boom, they are fewer and farther between than ever. Don’t worry, though. When it comes to finding suitable business square footage in this neighborhood, Boston City Properties has you covered.

You don’t have to be a real estate expert to be aware of how complicated it tends to be to find a suitable location for a business anywhere in Boston. When you narrow things down to this specific neighborhood, things are trickier still. Why does it pay to connect with Boston City Properties? With our free array of services and resources, you can arm yourself with timely and accurate information that is sure to make your search unfold all the more smoothly.

Before delving into the many ways in which our team can assist you in finding a location for your business needs in this part of the city, it helps to become a bit more familiar with this neighborhood’s commercial real estate market. We will eventually refer you to a local real estate expert who can bring you up to speed, but it pays to have a basic personal understanding too. After all, you are seeking property either for your business or for investment purposes. Either way, you’ll want to be as informed as possible.

Market Overview

If you were to ask just about anyone who knows a thing or two about Boston’s commercial real estate market these days, they would probably all agree on one thing: It is on fire. That applies not only to submarkets in neighborhoods across the city but to outlying towns and communities too. Due to the small size of this particular submarket, the available data may not be quite as elaborate as what you will find for other parts of the city. However, it is safe to assume that this submarket is very much in line with ones in the downtown core, and we can infer a lot of information from the condition of those submarkets.

A few factors in particular have been dominating news regarding real estate concerning hotels, shops, stores and the like, including:

• Business booming thanks to investors and mayoral initiatives – The city’s commercial real estate market started picking up steam several years ago. The Walsh administration has been praised by business leaders around the city for its commitment to accommodating their various needs as the city’s overall economic landscape shifts. Meanwhile, investors from both the local area, outside the state and from around the world continue to place their confidence in this submarket—and plenty of them have been snapping up properties in this neighborhood.
• Low vacancy rates keep rents high – On the national level, vacancy rates for commercial square footage have been hovering around 10 percent. Citywide, on the other hand, they have been lower for some time. During the fourth quarter of 2015, the vacancy rate was around 8.9 percent across the city as a whole; during the same period in 2016, it had dropped to around 7.5 percent. This represented a loss of around 1 million square feet of available property. If you look closer still, at the specific submarket in question, you will find that vacancy rates can be as low as 2.5 percent or so. Rents tend to stay high and keep rising when vacancy rates are low, and this is exacerbated in this neighborhood by its overall dearth of suitable square footage for many types of businesses.
• Absorption rates suggest that the boom isn’t ending anytime soon – Another way to assess the strength and health of a given real estate submarket is by considering its overall absorption rate for commercial properties. More than 1.2 million square feet of commercial real estate was absorbed across the city in 2016. How much of it was replaced? Given how things have been going lately, it almost certainly isn’t being replaced quickly enough—and that likely means continued high rents and prices.
• Asking rents remain high and continue to climb – When seeking a location for a business in any Boston neighborhood, it helps to have a general idea of how much you will probably pay per square foot for a location that suits your needs. Recently, the median quoted rent across Boston was around $56.02 per square foot. This figure is very deceiving for someone who is looking in this specific area, however, as rates vary incredibly wildly. In the most expensive neighborhoods, asking rents for commercial real estate are currently upwards of $60 per square foot. For locations like stores, restaurants, hotels and the like, the median asking rent lately across the city has been closer to $32.56 per square foot.

The Booming Economy

Businesses spanning seemingly all industries have been reporting exceptional growth across the greater Boston region. Companies that specialize in the sale of goods and wares, in particular, are really finding their footing lately. The job growth rate for the city and area continues to be very competitive, and the economy continues to grow at a rapid clip. Meanwhile, unemployment keeps dropping; as of September 2017, it hovered around 3.4 percent. In many industries, it is lower still. While growth continues across many industries, these are growing especially quickly: social assistance and healthcare; professional, science and tech services; and financial and insurance services.

What to Expect

What can you expect to find when seeking a location for a business in this prestigious Boston neighborhood? Since this part of the city has been settled since time immemorial, it is dominated by historic architecture, including many buildings that must be maintained a certain way. For someone who is seeking square footage for a business that sells goods to the general public, it can be tricky to locate something that not only works in general but that suits their budget too.

As is the case with other richly historic areas of the city, much of this neighborhood’s commercial real estate is tucked away into converted older homes. Many of these are brownstones, which means that there is generally an ample supply of “uppers” and “downers,” as the areas that are found about a half-story above and below street level are known. This type of location may be trickier to work with, and it doesn’t lend itself as well to attracting passersby. However, it is usually available for a lot less money, so it’s worth looking at if you are on a tight budget.

Unlike many nearby neighborhoods, this one hasn’t really been hit by the mixed-use development boom. That is almost entirely because there simply isn’t a lot of open land for developers to work with here. This isn’t to say that modern, roomier square footage isn’t available. It is, but the market for it is fiercely competitive. Boston City Properties can connect you with a local real estate agent in this area whose insider knowledge will give you the best odds of finding what you need.

Understanding Prices for Commercial Square Footage

People often say that location is everything, but there’s another factor that can obliterate any chances that you have of setting up shop in a particular place: price. If you are new to leasing or buying commercial real estate, you are in for a bit of a learning curve. Deciphering what quoted prices mean and comparing them in a meaningful way can be very confusing. Although your agent can explain and help, it’s better still for you to have a firm grasp too.

Like most people who seek commercial real estate, you are most likely going to lease the square footage as opposed to buy it. Therefore, it is crucial to understand how leases are quoted in the industry. Different types of leases include different charges. Some cover just about every expense, which means that you essentially pay a flat rate every month. Others cover some things but not others. Here is a quick breakdown of the most common types of leases that are used across Boston:

• Gross lease – With this type of lease, tenants pay a flat, lump sum every month. Landlords, meanwhile, cover all expenses, including property taxes, insurance and maintenance costs. The cost per square foot on such a lease may seem high, but since it includes everything, it allows for more convenient budgeting.
• Single-net lease – In this instance, the tenant is responsible not only for the monthly rent but for a certain percentage of the cost of property taxes. In other words, the landlord covers insurance and maintenance.
• Double-net lease – In this case, the tenant must pay the monthly rent but is also responsible for a share of the property taxes and property insurance. The landlord typically still covers the cost of maintenance.
• Triple-net lease – Finally, a triple-net lease, which is often also called a NNN lease, is one in which the tenant covers the rent along with percentages of the property taxes, property insurance and maintenance costs. You will find that most properties in our listings are quoted based on a triple-net lease.

For advice on making sense of different lease prices for commercial real estate, you can always contact the experts at Boston City Properties. We have agents in this neighborhood who are well-versed regarding its commercial submarket. They also always keep their fingers on the pulse of the market and its activities, which means that they have a very up-to-date and comprehensive understanding of what lease prices are currently doing in this area.

Factors Affecting How Much You Will Pay for a Location for Your Store

Whether you are opening a store or other commercial location for the first time ever or if you are relocating it to this neighborhood from elsewhere in Boston or the state, it is important to know that jumping right in and searching may not be the best option. Even if you have a firm grasp of how leases are quoted and the like, all kinds of other factors can affect the overall cost of leasing or buying commercial real estate. Here are some especially prominent examples:

• Type of tenant – Unfair though it may seem, larger, more well-established businesses tend to get preferential treatment when it comes to commercial leases. That is primarily because they tend to be big names that draw in customers from around the neighborhood and city, so they add considerable value for landlords. If you’re a “little guy,” don’t expect any special discounts.
• Type of place – The more adaptable and flexible that a location is, the more expensive it is likely to be. While it would seem that larger areas should cost more, it doesn’t always pan out that way. Unusually arranged locations often cost less as is the case with the aforementioned “uppers” and “downers” that are found throughout this neighborhood.
• Building conditions – As a general rule, newer buildings tend to be in better shape and therefore command higher rents. With so many historic buildings in this neighborhood, however, you’re not nearly as likely to find such areas as you would be elsewhere in the city. Suffice it to say that even in older buildings, maintenance and upkeep matter. Buildings that are in good shape cost more but have fewer problems, so it’s really a tradeoff.
• Proximity to foot traffic producers – Certain types of properties tend to attract pedestrians to downtown and core areas of the city. Commercial properties that are located within close proximity of such places tend to fetch higher rents. These types of properties may include anchor stores, colleges and universities, mass transit stops and convention centers.
• Lease terms – Generally speaking, the more flexible a lease’s terms are, the more you are going to pay. The main exception tends to be the month-to-month lease, but that’s not always the case. If you are willing to lock yourself into a longer term lease, you are more likely to get a better deal. Remember that just because a property is marketed as being attached to a certain lease type doesn’t necessarily mean that there’s no wiggle room. With the help of a real estate agent that we refer to you, you may be able to negotiate better terms.
• Scarcity – Finally, when a market is tight on a certain type of commercial property, that type of real estate tends to fetch higher rent. If it turns out that this applies to the location that you need, Boston City Properties can refer you to an agent who can help you find other suitable areas in the city on which to focus your search.

News

Many exciting developments have been unfolding in the world of Boston commercial real estate, including in the world of shops, hotels and other businesses. Internet retailer Wayfair is expanding dramatically across many core downtown areas and is expected to end up with more than 1 million square feet of real estate and an additional 10,000 employees. Amazon’s potential move into the city is also much in the news lately, and the spillover is certain to affect all areas of the city—including this neighborhood.

How Boston City Properties Can Help

It’s easy to feel lost when seeking a location for a business in this prominent Boston neighborhood. Given its compact total area and historic nature, its market is particularly challenging. One of the best things that you can do to aid your search is to connect with Boston City Properties. Right away, we will arm you with tools that are sure to streamline your search.

Did you know, for example, that we maintain one of the largest and most comprehensive online databases of searchable MA real estate listings? Data is pulled and updated continually from reliable sources, including many MLS sources. While it is generally dominated by residential listings, it includes listings for commercial properties across the city and state too. If you would like to kick-start your search without having to leave your desk, sign up to search our listings now. Just complete the simple signup form, and you will gain free, instant, unlimited access.

Find precisely what you need by availing yourself of our powerful search tool. Note that we can send email updates based on your search preferences to ensure that you receive the latest listings as quickly as possible. Within the search feature, select this neighborhood from the list. You can select more than one Boston neighborhood or Massachusetts town or city as well. Filters for things like price range and total square footage allow you to fine-tune your results quickly and easily, so you can zero in on promising options for your business in this exciting neighborhood.

With access to our wealth of resources, you will be able to do much of the work in finding a place for your business without having to step away from the computer. Eventually, however, it will be time to act. Contact us for a referral to a local commercial real estate expert. They can take you to check out properties and more. For more information, contact Boston City Properties.

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Retail Space