Boston Retail Market Report

Market conditions remain tight despite slower population growth. As the metro with the highest median household income among major Northeast markets, Boston is well positioned to record sustained consumer spending, with higher-income households continuing to account for a disproportionate share of retail demand nationally. As a result, retail vacancy should remain among the lowest in the country, although softer employment and population growth could temper tenant expansion even as supply pressures remain limited. The northern suburbs are expected to maintain sub-3 percent vacancy rates this year amid minimal development. The urban core should follow a similar trajectory, supported by steady leasing momentum last year. Notable bright spots include Back Bay, where new luxury watch boutiques and Boston’s first Google Store have opened, and the Seaport District, where experiential concepts, such as an F1 Arcade, continue to move-in, supported by steady foot traffic.