Stay up to date with the latest commercial real estate sales trends in Greater Boston in this informative video update. See what’s happening in the market and how it could impact your investment decisions.
Overview
– Market has pivoted in the past 90 days
– Annualized number of transactions for 2024 is below the long-term average
– Year-over-year change in volume is projected to be negative 30%
– 10-year treasury rate is at 4.3%, potentially stabilizing
– Volume and pricing trends vary across asset classes (retail, office, industrial)
– National pricing trends show a 22% adjustment followed by a 1-3% recovery
– Early signs of stabilization in the market
– Sentiment has been volatile, trending down recently
Assumptions
– Retail makes up about 50% of sales transactions
– Industrial market sees a volume correction but higher quality products entering
– Office market is challenging, with large floor plate and urban buildings suffering
– Office pricing at $141 per square foot, showing signs of recovery
– Buyers still active in the office market
Testing Strategy
– Monitor national pricing trends for potential impact on local market
– Keep an eye on sentiment changes in upcoming quarters
– Assess the performance of different asset classes to identify opportunities for investment or divestment