Boston Tied for Lowest Retail Vacancy with Miami, Raleigh 

The Boston retail real estate market is tightening, with a 2.9% vacancy rate, matching Miami and Raleigh for the lowest among 50 metros. Vacancy has declined annually since the pandemic, possibly due to low supply, with less than 260,000 square feet in the construction pipeline, according to a recent report from Marcus & Millichap.  

The average rent is now $21.85 per square foot. Major hubs like Newbury Street and the Prudential Center perform well. Suburban demand is rising, and a new Back Bay plaza above the Massachusetts Turnpike will feature stores, housing, restaurants, a hotel, and green space. Boston is becoming a hub for experiential retail; for example, Dick’s Sporting Goods is developing a 118,000-square-foot store in Back Bay with a rock climbing wall and batting cage.