Boston Retail Investment forecast
Metro Sees Record Investment Activity;
Boston Fundamentals Maintain Pace of Recovery
Signs point to solid year for retail metrics in Greater Boston. After weathering the worst of the health crisis, Boston's retail sector maintained an optimistic outlook entering the year. Hiring velocity is expected to continue at an above-national rate through 2022, though a protracted recovery is expected before the market reaches pre-pandemic levels of employment. Still, the metro's prominent life sciences sector will support highly-skilled job creation, providing a boost to discretionary spending and consumer demand. These increases will enable retail sales volume in 2022 to eclipse the pre-pandemic dollar mark by roughly 27 percent. Additional reasons for optimism exist as Boston entered this year with the third-lowest availability rate and a light construction pipeline. The sparse volume of supply additions slated for near-term completion will steer most expanding retailers to existing properties, placing downward pressure on metro vacancy, which should end this year 20 basis points below the trailing 10-year average.