Wages are generally 5 to 10 percent higher than a year earlier, and these increases are in line with billing rates. E-business professionals and web developers are witnessing even greater wage growth because of high demand for their skill sets. In response to tight labor markets, many clients are increasingly using staffing firms to fill their permanent hire needs. Outlooks are positive, although contacts say most of their clients are slightly concerned about future stock market performance. The commercial real estate market in New England has not changed much during the past quarter.
Rents continue to rise.
Vacancy rates for prime downtown office space are extremely low. Rental rates in the suburban office market have increased as a result. Retail and multifamily markets are also very robust, with vacancy rates below 4 percent in both. Contacts do not expect any major changes in the Boston market. The rest of New England is mixed.