The property industry continues to soar in Massachusetts and elsewhere. However, the demand for large spaces and longer-term office leases is dwindling. Instead, downsizing is taking center stage, which will no doubt impact how investors approach their commercial real estate transactions in the months ahead.
Law firms are a prime example of how companies are switching from larger offices to smaller spaces. These small businesses were once characterized by libraries and corner offices. However, they have reduced their office footprints by more than one-fifth since the recession of 2008.
Tenants are demanding turnkey services, shorter leases and office spaces that are more flexible than they were in the past. This has left quite a few landlords with assets that are underutilized. However, landlords are starting to adapt to the times by taking advantage of fractional leasing — the process of subdividing larger spaces to create smaller and less costly units for tenants. Without a doubt, the owners of real estate will have to continue to seek creative ways of maximizing value.
As consumer demands change in the commercial real estate industry, it is critical that investors stay on top of these changes and adjust accordingly. However, this is only a part of the process of being a successful real estate investor in Massachusetts. The other part is navigating real estate transactions successfully. Fortunately, an attorney can help investors through each step of the process of buying and selling real estate so that they ultimately achieve their financial goals in the Bay State.