Boston’s retail market remains one of the tightest in the country, supported by a strong consumer base and limited new construction. Availability dropped to just 3.0% in Q3 2025, among the lowest of the 50 largest U.S. markets, while the national rate sits at 4.9%. These conditions, paired with stable employment growth, have kept the local outlook resilient even as national retail markets face economic headwinds.

Boston households boast incomes more than 40% above the national average, translating into annual expenditures exceeding $100,000. Spending on dining, apparel, and entertainment runs 142% above the U.S. urban average, making the region an attractive target for both local operators and national brands. This consumer strength continues to drive demand for retail space, even in a supply-constrained environment.

For retailers seeking entry or expansion, options remain scarce. The construction pipeline accounts for just 0.3% of existing inventory, and most large projects underway are already pre-leased to anchors such as grocery chains, banks, and auto dealerships. New deliveries have slowed for three consecutive years, with starts running at only a fraction of peak levels from a decade ago.

The broader economy is providing further tailwinds. Employment has grown 1.2% year over year, led by a 3.5% gain in Leisure and Hospitality, while household incomes have risen 18% over the past four years—outpacing inflation. Tourism also continues to boost the market, with visitors spending $23.6 billion in 2023, a 5.3% annual increase.

With availability near historic lows and demand supported by robust fundamentals, rent growth has the potential to accelerate as space tightens further. For retailers, investors, and landlords, Boston’s retail sector represents a rare blend of stability and growth potential. Contact our team today to explore opportunities in this competitive market and position your business or portfolio for long-term success.