Contacts are cautiously optimistic about the industry's future. All expect the usual slowdown around the holidays and some anticipate additional softening of the regional economy. Commercial Real Estate Commercial real estate in New England is doing well. Capital market problems in August created shortages of financing in September and October. As a result, sales prices of commercial properties in Boston have declined by 10 to 15 percent since August.
Contacts report very low vacancy rates for office and retail space.
Some retail construction is occurring, but contacts report no speculative construction anywhere in the Boston area. The rest of New England is mixed. Maine has seen a rise in office and retail vacancy rates during the past quarter. Rhode Island has a very strong industrial market, but little activity in its office market. Vacancy rates in Hartford, however, may rise because of consolidation in the financial sector.