The office market in the Greater Lowell area appears steady as we meet the Fall season. The Edge Group, Inc. has several spaces under negotiation with professional tenants, which is a good sign. The ability for downtowns to retain professional tenancies and for-profits that contribute directly to the community is an important goal. Government agencies also play a stabilizing role. At Gateway Center in Lowell, several long term agencies are in the process of renewing their leases.
Edge manages property at 6 Boston Road in Chelmsford. The property is 100% occupied and upgrades have recently been done to common areas of the building and fire protection system. The property is anchored by Fishbones Restaurant (pictured below center), which has become a local standby based on quality of food and the convenient in-town location.
Also, in Chelmsford, Edge has been an advisor, along with HSH Associates, to Americal Management of Los Angeles, California. After several years of planning and hard work, Americal introduced partners proposing to redevelop the historic Odd Fellows Building (pictured above right) and Fiske House – and to add 30+ units of housing at a brookside location. Town Manager Paul Cohen called it “probably a once-in-a-lifetime opportunity for the community in terms of what’s transpiring, in terms of shaping the future and vision of the town center.” Interestingly, Edge has played a role in early plans to urbanize the Town Center, when it worked with the Town and architect Jonathan Woodman to envision the first brook walk plans.
The buying market for residential and commercial properties in Greater Lowell continues to be stable. Some of this effect may be related to the strength of the Boston and Rt. 128 market. Home sales show the following year to year increases:
Median Sales Price One Year Change
Billerica $486,000 +6.3%
Chelmsford $499,491 +3.0%
Dracut $366,000 +0.3%
Lowell $356,000 +18.7%
Commercial activity is stable, although the area market is still coping with the absorption of older office space. Cushman & Wakefield in their commercial market review for the previous quarter finds that “The suburban narrative was unchanged in the third quarter where life science activity and new construction continue to dominate headlines. At negative 226,000 sf year-to-date (ytd), absorption reflected both large new availabilities in the second quarter as well as several significant new leases in third quarter.”
In Greater Lowell, prices for office space after a long recovery period are stable or increasing, however, concerns exist due to the ability of companies to reduce their physical footprint and to take advantage of technology and communications efficiencies.
At The Edge Group, Inc., we pride ourselves in combining market knowledge and superior customer service to give you an edge in the real estate market. Please don’t hesitate to call or to email Fred Faust, Principal, at ffaust@edgegroupin.com or for residential properties, chip@edgegroupinc.com
