Vacancy rates for office space in 128 north are increasing. According to CoStar research, vacancy rates dipped in 2006-2007 into the 13% range. They're now forecasting vacancy rates up to 16% as more space comes on the market with pending job layoffs. The vacancy rate has not increased more drastically because tenants have not started giving up space to their landlords as they hold out to see when the recession will end and to see whether they'll need space to rehire staff.
"You've finally capitulated, haven't you?" joked my business partner. He and I laugh at the fact that he's a bear and I'm a bull. It works for us. And when either of us become too negative or positive on the market, we weigh the pros and cons. "Yep." I said. "Despite the fact that you know that I'm a bull and that I've been writing and advising of this correction for some time now, I really feel that I've experienced the shift today. There's no going back now."A lot of equity's going to be lost.
Property & Portfolio Research has published some mean numbers that indicate that we're going to be in for a wild ride over the next couple of years in the Boston area commercial real estate market. As much as what I hear around town is a false sense of hope and security that this will blow over soon and we'll get back to prosperous times again, it looks like the coming storm is going to get nasty.
That is the question that Paul Marcus, CEO of Marcus Partners asked 155 seasoned Boston area real estate professionals at this week’s REFA 2009 Forecasting Luncheon.
Word On The Street
This graph depicts the psychology of the market through a boom and bust cycle. REFA coordinators used a very cool very innovative polling device that allowed the [...]
We’re at the REFA 2009 forecasting luncheon. The view is impressive… we’ll see about the outlook. I’ve already overheard an opinion that we’re looking to lose 20-30% more in commercial real estate values this year.
Come back for a detailed follow up report on what we learn.
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In this podcast episode Ken Riggs, CEO of the Real Estate Research Corporation, updates his forecast for the commercial real estate market in 2009. Ken explores what property types and what locations will be be the best and which have the most exposure. Listen in to this CCIM podcast.
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The leaves are falling, we’ve changed the clocks and our thoughts turn to what next year will bring. Each fall the Urban Land Institute produces a report entitled Emerging Trends in Real Estate which forecasts real estate investment, finance, and development trends for the upcoming year. Last week, ULI’s Boston District Council hosted a discussion [...]
Thursday, May 28, 2009
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