Bedford Office Space

With its historic residences, ancient burial grounds, old mills and other notable attractions, Bedford is a town that people and businesses like to call home. Historic charm meets new world convenience in this dynamic town, which is near a few important roadways, including I-95, US-3, and MA-128. The town is also only about 15 miles north of Boston. The short physical distance between the two locations is significant because it means that the town is a place where businesses and people will continue to go as property rates in Boston rise.

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There are two separate neighborhoods in this town, which are the town center and West Bedford. The town center contains the highest concentration of buildings, both residential and commercial. The town's municipal buildings, including a courthouse, police station, and post office, are located in the downtown area. The vibrant main street is lined with quaint shops, bakeries, restaurants, and bars. Vintage clothing stores and family-owned businesses are also part of the commercial landscape in this area of town. Some buildings, especially multi-story buildings, are used for residential purposes. An increasing trend is that they are also being used as mixed-use spaces, often with businesses on the lower level and apartments on the upper floors. The center of town is served by Route 3, which has heavily trafficked and highly visible commercial areas. West Bedford contains scenic lakes and parks, which adds to its appeal as a place to live.

Those wanting to explore the area may find that leasing space is a perfect opportunity. The average lease price for property has risen since 2017, but it is still quite favorable for businesses. An incentive for companies to sign a lease in 2018 is that rental prices are expected to continue on an unprecedented upward path. Lease prices rose during the past year, and landlords are expected to easily increase their rental rates by another 5% through the year of 2018. Another incentive for businesses to start moving into the area is the fact that investors are eager to help finance projects. This has been an increasing trend over the past several years, and it will continue to be that way as Boston's economy continues to stay strong, and its commercial center continues to expand outwards into the surrounding areas. Listing prices here vary based on the size, age, and location of the building. An average price for an office building in good condition, located in a visible location, is about $15.00 SF per year. Prices may increase to about $20.00 per SF in a year for new, renovated, or highly visible buildings with high volumes of traffic.

Larger companies, and even smaller companies planning to stay in the area for a longer period of time, are increasingly deciding to buy space instead of rent. Buying makes sense for several reasons, provided companies have the financial capacity and are willing to stay in one place for some time. Purchasing space quite often leads to a higher ROI, as companies who purchase end up locking in a long-term mortgage rate. This can realize significant savings over the course of the loan's lifetime, which averages five to 10 years. Another advantage for businesses is that having a fixed rate ensures some degree of financial stability, which makes it easier to predict costs across the board for upcoming business expenses. Another good reason to buy is for tax deductions. The costs of running and operation a commercial property can translate to a number of tax deductions, which may come in the form of a reduced mortgage interest rate, lower property taxes, and other advantages. Finally, buying space can translate to additional income, as building owners then have the option of renting out space to incoming clients.

Just as the market is favorable for incoming businesses, it is also a great time to sell and lease property. Landlords and building owners are finding that they can raise their asking prices to unprecedented levels (at least 5% more in 2018 than in 2017), which is generating more revenue. Property values are expected to rise as demand for buildings and land grows. Although there are still vacancies in the area, space is becoming increasingly scarce as businesses are moving into the Greater Boston area at increasing rates. For the first time in history, businesses are deciding to go with lower-tier spaces (primarily Class B, and even some Class C properties) instead of Class A properties. There is little new construction taking place in the Greater Boston area, and instead entities are finding that they can easily (and affordably) fix up and alter older buildings to suit their needs. This is particularly true for industrial and hybrid-use buildings, which generally have significant amounts of space and are strategically located close to the busiest roadways. The added advantage for companies moving into these spaces is that they can have the option for subleasing or renting space, which translates to additional income for them, and also makes them more willing to pay for property.

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