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Massachusetts Commercial Real Estate Market Coming Back Strong as Vacancy Rates Fall in Major Tech Centers

Lynn Tokarczyk, Government Incentives Consultant - Business Development Strategies, Inc.
Lynn Tokarczyk, Government Incentives Consultant - Business Development Strategies, Inc.

After a relatively lackluster five years, the commercial real estate market in Boston and surrounding suburbs is seeing a strong rebound fueled by growth in the technology sector, increasing confidence by the manufacturing sector, available state and local tax incentives, and a new cultural trend that is driving young professionals to a live/work/play lifestyle. This optimistic outlook was shared by speakers at a special briefing in Marlborough, MA, on November 14th, for real estate developers and commercial property tenants who may be considering expansions in the Commonwealth. Entitled “Identifying and Maximizing Incentives for Real Estate Expansions in Massachusetts,” the briefing was hosted by Business Development Strategies, Inc., and Rodman & Rodman, CPAs.

“Boston and Cambridge are on fire, with overall vacancy rates of only 9.9% and 9.7% respectively.” said Stephen Woelfel, Jr., Director - Cushman & Wakefield.  Suburban commercial centers, such as the Route 128 West corridor are also showing renewed strength, noted Woelfel.

Norton Town Manager, Michael Yunits, explained how smaller, but conveniently-located towns like Norton are attracting larger corporate expansions through favorable tax rates, tax incentives, and attractive amenities to draw new employees. “In Norton, we have created a very business-friendly environment,” said Yunits. “Businesses pay the same real estate tax rates as residents. We encourage business-community partnerships, and do what we can to shorten the approval process for Tax Increment Financing.”

The healthy growth of the green energy sector in Massachusetts has been another boon for the real estate industry, noted Thomas Astore, practice leader at Rodman & Rodman CPA’s Green Energy Accounting Practice. “While the market for Solar Renewable Energy Credits has fallen apart in other northeastern states, such as New Jersey, Massachusetts continues to show healthy growth,” said Astore. Astore said that financing renewable energy projects is still complicated. “One of the keys to success is properly structuring the company in the early planning stages, so stakeholders receive maximum tax benefits, said Astore.”

“Tax incentives offered under the Massachusetts Economic Development Incentive Program (EDIP) may reduce a company’s project costs and provide financial value to its real estate expansion,” said Lynn Tokarczyk, Government Incentives Consultant - Business Development Strategies, Inc. Business Development Strategies assists companies across the Commonwealth to identify, negotiate, and secure state and local tax incentives.  Tokarczyk explained that qualifying companies are eligible to apply for these incentives if they meet specific state criteria:  job creation; new real estate investment which in turn creates new local tax revenues; and substantial sales outside the Commonwealth.

About Rodman & Rodman P.C. CPAs

Founded in 1961 and listed in the Boston Business Journal's "Top 50 Firms," Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies. The Rodman & Rodman “Green Team” is a specialized green energy and clean technology accounting and tax services practice within Rodman & Rodman, P.C. that serves “green” clients throughout the U.S.  The company is Green Business Certified and has been named by “Accounting Today” as one of the "Best Accounting Firms to Work For" in 2010, 2011, and 2012. For more information, email info@rodmancpa.com, visit their website atwww.rodmancpa.com or contact (617) 965-5959. 

About Business Development Strategies, Inc.

Business Development Strategies, Inc. (BDS) is a leading government incentives consulting firm. Since its inception in 2003, BDS has worked with growing companies across a wide spectrum of industries to help identify, negotiate and secure government incentives to accelerate their real estate expansion plans. Founded by Lynn Tokarczyk, a former regional director of the Massachusetts Office of Business Development and senior manager for Ernst & Young, BDS helps companies access state investment tax credits, municipal property tax relief in the form of Tax Increment Financing (TIFs) and other state and local programs designed to stimulate business investment and job creation. For more information, email lynn@businessdevelopment-strategies.com, visit their website at www.businessdevelopment-strategies.com, or call (508) 966-4300.

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