Welcome to our Boston Blog. We will be bringing you top-of-mind insights from our experts in every facet of the industry. It is our hope to make this a two way street, and invite your comments on the thoughts and observations expressed here.
It’s been a beautiful summer, and almost anywhere you spent vacation time was perfect for activities in the water. Almost. With sharks swirling off the coast of Chatham, I recently enjoyed a few days there out of the ocean with plenty of time on the sand to ponder the real estate market. Here are some beachfront musings.
I am encouraged by the increase in leasing activity. Tenants are now willing, if not anxious, to make occupancy decisions as they see the bottom of the market approaching. However, with the belief that a market recovery is in sight, larger landlords are reluctant to strike deals with tenants whose expiration date is outside 18-24 months.
Although earlier this year there appeared to be a surge of properties for sale poised to take advantage of the pent up demand within capital sources, we have seen a retrenching of sorts. Buildings are being taken off the market as buyers and sellers continue to struggle to close the gap. The “capital recovery” got out in front of the economy, but as pricing returns to economic reality, we expect sales transactions to resume during the second half of the year.
Higher education and the life sciences are investing in development and their future again. This of course bodes well for employment in Massachusetts and a sector of the real estate market.
We will continue to keep a watchful eye on the industry waters in this blog. Look for upcoming posts from me and my Jones Lang LaSalle colleagues.