An Overview of the Real Estate Market in Chelsea

Chelsea has a strong industrial past, but there have been efforts to rejuvenate the city with the needs of modern residents in mind. Accordingly, the downtown area has been a particular focus as it is revamped to appeal to today's residents. This means that the storefronts are being transformed, and new, trendy businesses are actively being pursued. Restaurants, clothing boutiques and other stores with high popularity among Millennials have seen a lot of growth in recent years.

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Retail Space

When considering retail space in this neighborhood, it is important to look at the types of properties available. Warehouse space is different than a storefront or office pavilion. Currently, all types of commercial space is available.

Large office complexes are especially prevalent. Many of these properties are something of a blank slate, which means they can be rehabilitated and updated to suit any number of modern needs. Larger office complexes are often located a bit farther from the city's center, but these buildings are large enough to house a significant number of employees. For this reason, these properties are ideal for a company seeking to draw new employees from the growing community base. These larger commercial properties can be located on streets like Crescent, Everett and more.

In addition to larger complexes, smaller retail options are also available. These smaller storefronts are often centrally located for foot traffic. These properties are good for restaurants, clothing stores, electronics boutiques and more. These smaller properties are often harder to find, and they do not generally stay on the market very long. The most popular locations are on busy thoroughfares like Washington or Broadway.

While there has been an effort to give the area a makeover for modern business needs, the traditional industrial buildings are still available. These large properties are often situated in areas already heavy with industry. Warehouse space is particularly versatile. It can be used for storage, or it can be transformed into assembly space as needed by the new business operation. Some businesses actually seek out more than one property in this neighborhood. The first property may be an office or storefront while the second may allow for the storage or preparation of inventory.

The scope of commercial real estate in this Boston neighborhood has also drawn investors with other desires. In fact, this area has been increasingly popular with businesses with a desire to redevelop existing properties. Abandoned lots have been targeted in particular, allowing for the industrial past to see a more vibrant future. While business growth has occurred in all sectors, restaurant growth has been especially lucrative over the last ten years, which lines up with the residential growth.

Price Guidelines for Real Estate

Boston has a notoriously expensive real estate scene, which is why outlying areas have become attractive. These areas offer proximity to Boston, allowing residents and business owners to enjoy the benefits of big city life. However, since these areas are farther away from the downtown, they are significantly cheaper. This makes them accessible to buyers and renters at all price points.

Most of the calculations about the market are based on residential properties, but the general trends extend to retail space as well. For example, rental prices are especially competitive in this neighborhood. This offers businesses in this area a significant savings each month. Many businesses operate on a tight profit margin. In these situations, minimizing ongoing costs is absolutely essential in order for the business to survive. For these businesses, every dollar counts, and this neighborhood empowers owners to make the most of their income.

Specific prices for renting are based on a price per square foot. In this manner, a property with 10,626 square feet may cost $1.25 per square foot each month. This makes it harder to calculate the overall rental costs for retail properties. However, to understand the range of options available, it is useful to compare different options on the market. Office space in a decent location with a more historical building can cost $1.50 per square foot each month. Cheaper rents may cost as little as $.50 per square foot each month, but properties at this price point are usually farther from the city center, and they may be slated for industrial use. Retail space that is already primed for store space on a street with good foot traffic may cost as much as $2.51 per square foot each month.

As for businesses that want to purchase a parcel in this neighborhood, it is important to remember that prices vary substantially based on a variety of factors. First, price is determined by the size of the property being considered. An office building with 64,000 square feet can cost $2.35 million. A smaller property with just under 12,000 square feet can cost $1.3 million. These prices vary depending on the age of the building, the quality of finishes and the specific street address.

Like many parts of the country, this Boston suburb was affected by the real estate crash in 2008. Although home prices have rebounded and continue to grow, retail vacancies are still present on the market. Given how lucrative Boston real estate can be, it is not surprising that many businesses were negatively impacted by the financial crisis. The positive point regarding foreclosure rates in the area is that there are still bargains to be found. A foreclosed property is often purchased as-is at a discounted price. This means that potential buyers with an eye for value can find excellent deals in this area. Vacant retail space sometimes needs a bit of extra care and attention, but rehabilitating one of these properties can pay real dividends for both the owner and the community at large.

Overall, the market in this neighborhood has managed to maintain a healthy balance. Real estate prices continue to rise, but with costs lower than the majority of Boston, it is still a great place for eager business owners to explore.

News and Current Developments

Given the appeal of this neighborhood with business owners, real estate growth has been supported by other factors. In order to keep pace with the needs of the community, Boston officials have given the area a little extra attention. This is especially true in the case of public transit.

Many residents in this area rely on public transit to move throughout the greater Boston metropolitan area. Homes and offices near transit stops are very popular, and such properties are in high demand among commuters. Therefore, the news that a new extension will have a stop in this neighborhood is good for residents and business owners.

The extension will be part of the established Silver Line. In order to support the extension, a depot is being added in the area, and the traffic lanes have been carefully reworked to allow buses an exclusive right-of-way as they cross the busiest areas of traffic.

The new station will be an alternative to the depot that is already in the area. Given the heavy traffic at this station, the new alternative will greatly disperse the crowds and support ongoing growth. Commuters are expected to benefit the most. Specifically, the new route is expected to support 8,700 riders. This includes 2,500 who do not currently use the public transit system.

Another perk of the new line will be its connection with the Blue Line and its stop at the subway station. With these features, the extended Silver Line will give residents easier options for traversing the city and the region. In particular, the extension will provide added support for Seaport. Officials hope that the new line will help mitigate growing concerns about congestion.

The plan has been in development for nearly five years, but officials are optimistic that the new extension will open in 2018. Work has been slowed by several delays in order to adjust bridges and utility poles to support the new route. Officials are pleased to report that it has not exceeded budgetary expectations. The cost of the extension is expected to top off around $82 million.

Even though the new line will hopefully be operational in 2018, the updated station in the western part of the neighborhood will not open until 2019. This new station, however, will be worth the wait. The current station does not have many amenities, but the updated one is slated to have longer platforms, more shelters and full access for riders with disabilities.

These transit upgrades are not the only real estate plans in development. As Boston officials seek to integrate the community into the larger area more effectively, local leaders have turned their attentions to making the town more vibrant with commerce and culture.

Thanks to residential growth, commercial interests have likewise seen growth. However, it takes extra effort to transform older commercial lots into modern business opportunities. Therefore, local leaders have started to reassess the current spaces in the area. The good news is that the downtown sector has ample space for development. Unfortunately, much of that space has sat idle and underdeveloped for quite some time.

For this reason, the city has established a position for a Downtown Coordinator, who will focus on revitalizing the downtown district. This effort is being called Chelsea Prospers, and it officially kicked into gear on May 25, 2017.

The project is slated to have several components in order to support and foster growth in the downtown district. First of all, an additional police presence has been assigned to manage the district more effectively. Public safety has been something of a concern in the past, and a stronger police presence is intended to restore order and faith in the region's accessibility.

Then, in order to create more buzz, there will be more community events in the downtown. Throughout the summer of 2017, officials used Bellingham Square and Chelsea Square in the city to host several popular community events. The concert series on Thursday nights was especially popular.

Another aspect of the plan will include a Lunch Marketplace. This unique food gathering has been open on Wednesdays during the summer, hosting vendors right on the lawn of City Hall. The Lunch Marketplace was attractive for residents and commercial vendors alike. Residents had access to new, unique food options. Vendors got to expand their business and see if they could do further investment in the downtown district.

Other events and incentives have been ongoing. The hope is to bring people back to the downtown and to introduce the area to people who may not have been there in the past. As more people experience and enjoy downtown life, city officials are optimistic that new businesses will look for real estate space in the area. This ongoing development will spur more competition, more activity and more success all around.

Similar programs have been very successful in other areas, generating foot traffic, word-of-mouth excitement and, most importantly, commercial real estate investment. Additional money has been designated for cosmetic upgrades to the downtown with revitalized trees, wider sidewalks and more. The current businesses have enjoyed help in updating their storefronts for a new, energetic look that appeals to the residents of the area.

Your Exploration of the Area's Real Estate

Given the current market conditions and that latest news developments, now is the perfect time to look seriously at retail space in Chelsea. There are ample opportunities in this Boston section, but it can be difficult to find the right property without a little help from the experts.

Fortunately, you can find the help you need by using the database here at Boston City Properties. Our database is meticulously maintained and thoroughly organized by a variety of criteria. We put in the work so you do not have to. Thanks to our metrics, it is easy to search for properties to suit any need. If you have a specific property in mind, we can help you find it. If you are not sure where to start, we can help you navigate the market as well.

All of this is available when you sign up for a membership at Boston City Properties. Our database is carefully monitored for property listings that are updated by the minute. Given how quickly good locations are snapped up by investors, this kind of timeliness is essential. If you want to make sure you do not miss out on your ideal property, this is the kind of service you need for your commercial real estate quest.

If you do not find what you want the first time you log in, do not worry. A membership at Boston City Properties has ongoing benefits for commercial interests. For example, it is possible to organize a standing search for any new property that might be listed. This means that when a new property is entered into the database that meets your specific search criteria, you will receive an email update about the property. With this kind of service, it is possible to stay on top of the market, ensuring that you do not miss out on any unique opportunities.

Clearly, this kind of service is good for all kinds of commercial real estate interests. If you are looking to open a single location, then picking the right spot is essential. This service will help you in that search, narrowing down your options so you do not have to compromise on any key element. On the other hand, if you have more diverse commercial interests and are always looking for new investment opportunities, then the search criteria can be a great way to stay updated on the latest developments. When something new hits the market, you can instantly assess whether or not it has the investment potential you seek. Ultimately, given the range of metrics, any business prospect can easily be disseminated through Boston City Properties.

There is much more to discover when you sign up at Boston City Properties. If you have commercial interests of any size or focus, then this database is absolutely critical. Do not let your business potential get stalled in a competitive Boston market. Stay on top of the latest developments, and pick your investments wisely. All of this is possible when you sign up for your membership at Boston City Properties. Therefore, enter your information, and start your commercial real estate quest in Chelsea today.

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Retail Space