Boston Retail Market Report

Western, northern suburban outlook continuing to improve. Entering the second quarter, retail vacancy for the suburbs ranging from north of Cambridge and Boston proper up to Rochester, New Hampshire, was below 3.0 percent. Vacancy was similarly tight west in the Marlborough-Framingham-Holliston area. Pockets of consumer spending power surrounding affluent neighborhoods and favorable population growth projections relative to the market are bolstering retailers' space needs in these suburban swaths. Subdued construction activity, both in these areas and for the market overall, is also helping direct demand to existing space. Fitness centers and other physical activity-focused concepts highlighted lease signings through the first five months of the year across suburban Boston.