Commercial Real Estate Market in Watertown, MA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
89 active listings and 536 off-market properties in Watertown, MA. Commercial property asks $559/SF to buy and $31.50/SF/Yr to lease.
Market Trends
Watertown, MA spans 4.0 square miles in Middlesex County, Massachusetts. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Watertown, MA runs 19.9% across the Northeast region in 2025, up from 13.1% in 2019.
Vacancy Rate % in Northeast region
Retail
Retail vacancy in Watertown, MA runs 6% across the Northeast region in 2025, little changed from 6% in 2019. Down from a 2020 peak of 7.1%.
Vacancy Rate % in Northeast region
Industrial
Industrial vacancy in Watertown, MA runs 7.6% across the Northeast region in 2025, up from 5.4% in 2019. Nearly 2.4x the 2021 low of 3.2%.
Vacancy Rate % in Northeast region
Multifamily
Multifamily space in Watertown, MA asks $318/SF to buy. Vacancy runs 5.6% across the Northeast region in 2025, up from 4% in 2022.
Average Sale Price $/SF
Listings
Vacancy Rate % in Northeast region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 56.6%
- Open space 20.5%
- Mixed use 8.4%
- Industrial 7.1%
- Commercial 1.6%
Largest Zones share of zoned land by district
Two Family Residence
Open Space And Conservancy
Single Family Residence
Industrial 2
Cluster Residential
Watertown, MA zones 2,584 acres across 21 districts. Commercial zoning covers 1.6% of zoned land, residential 56.6%, open space 20.5% and industrial 7.1%. The largest single district is Two Family Residence at 31.9%. For commercial buyers the practical constraint is that only 8.7% of land carries a commercial or industrial designation.
Two Family Residence (T)
The intent of the zone to promote Two Family Residence District
Market overview
Demographics & Economy
Watertown, MA has 35,392 residents in 17,069 households. Density runs 8,782 people per square mile. Median household income here is $123,383 and median gross rent $2,356 a month.
35,392
Population
17,069
Households
2.1
Avg Household Size
39
Median Age
67%
College-Educated
95%
High-School Grad
4 sq mi
ZIP Area
8,782
Density / Sq Mi
$123,383
Median Household Income
$77,537
Median Earnings
$2,356
Median Rent
$737,600
Median Home Value
Tools
Lease vs Buy Breakeven
At $31.50/SF/Yr lease vs $559/SF buy → buying wins if held > 6.5 years.
At a 5.6% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Arlington | — | $33.18 |
| Belmont | — | $39.89 |
| Medford | — | $22.82 |
| Winchester | — | — |
Commercial property in Watertown, MA asks $559/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Watertown?
Commercial property in Watertown, MA asks an average of $559 per square foot. The 6 most recent recorded sales traded at a median of $466/SF, so asking sits 20% above the achieved median. Multifamily carries the highest asking price at $318/SF.
How much does it cost to lease commercial space in Watertown?
Asking lease rates in Watertown, MA average $31.50 per square foot per year.
Is it cheaper to lease or buy commercial space in Watertown?
Buying beats leasing in Watertown, MA if the property is held longer than 6.5 years, comparing $31.50/SF/Yr asking rent with $559/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Watertown?
Watertown, MA zones 2,584 acres across 21 districts, of which 1.6% is commercial and 7.1% industrial. The largest single district is Two Family Residence at 31.9% of zoned land. The intent of the zone to promote Two Family Residence District Residential zoning covers 56.6% and open space 20.5%.
Where does Realmo's Watertown market data come from?
Realmo compiles Watertown, MA figures from 8 recent recorded sales, 38 active sale listings, 51 active lease listings, 536 tracked off-market properties, the current Watertown zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 38 active for-sale and 51 active for-lease listings in Watertown, MA. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 2,584 zoned acres across 21 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at Northeast region level, retail vacancy is reported at Northeast region level and industrial vacancy is reported at Northeast region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
