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ew Hampshire's Commercial Real Estate Market: A Beacon of Resilience in a Turbulent Region

    As New England grapples with affordability, regulatory hurdles, and post-pandemic uncertainty, the Granite State has emerged as a shining exception. Its business-friendly environment, strategic location, and streamlined permitting process have made it an attractive haven for investors, developers, and entrepreneurs.

    Tax advantages are a significant draw, with New Hampshire ranking first in New England and sixth nationally according to the Tax Foundation's 2024 State Business Tax Climate Index. The absence of a general sales tax, income tax on wages or capital gains, and a declining business tax structure make it an appealing destination for high-net-worth individuals and businesses.

    Geography also plays a crucial role, with southern New Hampshire and the Seacoast area offering easy access to Boston and major highways at lower real estate costs. Industrial lease rates in this region average $11.62 NNN, significantly lower than neighboring Massachusetts.

    New Hampshire's localized governance model allows municipalities to control zoning and approvals, often resulting in faster timelines. While not without its challenges, the state's approach can seem refreshingly practical compared to its neighbors.

    Advanced manufacturing is another bright spot, with over 1,100 businesses and 5.6% of total employment driven by aerospace, defense, and precision optics. The sector benefits from targeted workforce development and private-sector partnerships, with wages exceeding national averages.

    Construction has outpaced overall employment growth since 2013, fueled by demand for housing, commercial space, and infrastructure. However, the state faces challenges such as workforce shortages, limited housing supply, and high construction costs that could slow long-term momentum.

    To maintain its pro-growth trajectory, New Hampshire must invest strategically in talent, housing, and infrastructure. With a well-positioned CRE market, the opportunity is real – but will we seize it?