Mass. Retail Scene Following Trend of Smaller Spaces
In our previous post, we mentioned that companies such as Neiman Marcus are placing a greater emphasis on smaller spaces. This trend is not limited to high-end retailers. In Massachusetts, small to mid-size vendors are reaping the benefits of the ongoing state and nationwide housing recovery.
With the recession in its rearview mirror, the Massachusetts retail scene is showing signs of improvement. Vacancy rates are falling (11.5% decline in vacant retail establishments from last year), and major shopping centers are flourishing, such as Legacy Place, a 675,000 square foot outdoor mall located in Dedham.
A large segment of Legacy Place’s tenants operate in spaces of less than 5,000 square feet. This section of the Bay State’s retail population has been particularly keen on securing space, tying back to the prevailing theme of “smaller space is better” in the retail industry.
According to a new report from KeyPoint, the vacancy rate for spaces of less than 2,500 square feet dropped to 12.4% from 13.9% in a year-long period. Vacancies in the 2,500-to-5,000-square-foot portion of the market fell to 10.4% from 12%. These two subdivisions of the market account for 36% of the total retail space available in Massachusetts. (BBJ)
As a full-service commercial real estate firm, ABG Commercial Advisors counts the retail sector as one of our main areas of focus. We have several properties in highly exposed areas around Boston that would be ideal for any business owners or other aspiring retailers looking for spaces on the smaller side. Check out some of our featured spaces below or our website for all available retail properties for lease!