What’s in Store for 2025?
Get Our Latest Greater Boston commercial real estate market sales trends outlook.
What’s in Store for 2025? Here is a list of our Q3 2024 Greater Boston commercial real estate sales trends to watch.
– Geography: Rockingham, Essex, and Middlesex Counties for sales between $1M and $100M across retail, office, industrial, and flex assets.
– Tracking Greater Boston commercial real estate sales transaction data since 2006, highlighting a historical average of 454 transactions annually in these markets.
2024 Commercial Real Estate Market Performance
– Anticipated 2024 total: 391 transactions (below the long-term average of 454).
– Deceleration attributed to rising interest rates impacting market velocity.
Interest Rates and Market Impact
– Federal Reserve raised interest rates from 2021 through 2023; paused in mid-2023.
– Rate cuts: 50 basis points in September 2024 and 25 basis points in October 2024.
– Despite rate cuts, 10-year Treasury yields rose to ~4.4%, increasing borrowing costs for commercial real estate.
Contributing Factors:
– Diminished recession fears.
– U.S. debt growth concerns.
– Rising debt cycle risks.
Sales and Transaction Data
– YTD: 341 transactions with ~$1.269 billion in volume (below the $2.8 billion average).
– Smaller assets dominate sales; fewer high-value assets trading.
– Adjustments seen in average price per square foot across asset types.
Asset Class Insights
1. Retail Market
– 176 transactions YTD; expected 202 total.
– Remains a highly favored asset class despite price moderation.
2. Industrial Market
– YTD: 82 sales; expected 94 total.
– Signs of stabilization; price per square foot at ~$181, holding steady.
– Recovery expected to continue into 2025.
3. Office Market
– YTD: 56 transactions; expected 64 total.
– Prices near 2008–2010 levels; suburban office parks show demand.
– Class A urban office performing better; B/C assets face challenges.
4. Flex Market
– Recovery from life science bubble of 2021–2022.
– Stabilizing price trends.
Market Trends and Forecasts
– Green Street Commercial Property Price Index shows national price growth stabilizing.
– Market focus shifting to tenant durability and quality in 2025.
– Industrial entering hyper-supply phase; office market beginning recovery.
Outlook for 2025
– Concerns over tenant stability, underwriting challenges.
– Continued normalization of pricing trends.
MANSARD Four-Step Process
1. Discovery: Understand client goals and plans.
2. Evaluation: Develop market strategy and position asset for investors to our extensive buyer network.
3. Execution: Market the asset to achieve the best price.
4. Celebration: Facilitate closing and asset transition.
Contact Information
Website: MansardCRE.com
Phone: 617-674-2043
Retail
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Office
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Industrial
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selling your property.
Ultimately, very few resources have the expertise to ensure the successful sale to the right buyer at the right time.
MANSARD was named one of the largest commercial real estate selling brokers in Massachusetts in 2018 by the Boston Business Journal.
88.9% of MANSARD’s recent deals closed on time and at our client’s accepted offer price.
That’s because at MANSARD, we deliver engaged buyers who close, guarantee experience and knowledge, and outrank our competitors by average sale transactions per broker.
Case Studies
40,000 SF Office Building Sold for $5,500,000
Situation – Acquired as a 3 year reposition, this 41,000 SF office building located at 41-55 North Road in Bedford, Massachusetts underwent nearly $2M in capital upgrades and was leased to 80% occupancy. The time had come to return capital to the investors.
Process – We undertook a public marketing process with a priced offering at $5.5M and a bid deadline. We generated 5 offers that topped out at 90% of the asking price until we began the negotiations.
Result – The property sold for 100% of its asking price within 60 days of going under contract.
Coldwell Banker Retail Property: Sold
Situation – A 40 year investment partnership sought to sell, requiring top value and assurance of close. During the marketing period, Coldwell Banker vacated, followed by a title issue that prevented a sale.
Process – We conducted a national search, registering 49 buyers. 8 cash bids were received and negotiations resulted in a winning offer, 60 day cash close. We coordinated an attorney to clear the title, working with the buyer’s title company and legal team for 3 months.
Result – Property is under contract with a clear path to close.
Privately Marketed: Sold for $3,900,000
Situation – Family office requested a discrete, private sale of the 100% net leased near term medical office and retail property located at 1069 Broadway in Saugus, Massachusetts.
Process – We conducted confidential outreach to our database of qualified buyers combined with owner profiling calls to area investors inclined to acquire this property type, resulting in 12 buyer-seller meetings at our office. In the interviews, the sellers gained insight into market demand for the property and focused on the right buyer.
Result – 4 offers were generated and the property was ultimately sold for $3,900,000.
The Choice of Successful Investors
Thank you for everything you did in completing the leasing and sale of our building at 580 Main Street. You did a wonderful job working with all of the personalities involved. We look forward to working with you again in the future.
Richard Tambone
TAMBONE INVESTMENT GROUP
MANSARD was a partner through the whole process. From the initial leasing of a temporary space to the acquisition of our own building. I like the personal touch and sense of expertise that came with working with MANSARD.
Norbert Johnson
GLOBUS MEDICAL
We used MANSARD to help us reposition, lease and sell a small suburban commercial office building. They were fantastic, well read in the market place and helped us realize our projected returns. Would highly recommend their services.
Bob Macnamara
CB Equities
Get started working with MANSARD
Step 1: Schedule a Phone Call
Before we begin, we will hold a 20 minute phone conversation to ask each other some questions. Together, we determine what you would like the successful sale of your commercial real estate to do for you. If at the end of the conversation, you decide it makes sense to schedule a meeting, we will meet in person within the next 1 to 5 days.
Step 2: Hold an Initial 45-90 Minute Meeting in Person – What to Expect
We will first meet for 45-90 minutes at your place of business, the property or a convenient location for you. During this meeting, we will review our phone conversation and then gather more information about specific questions you have about the market, our proprietary investment sales process, your property valuation, and the costs to complete a sale with MANSARD. If at the end of the meeting you believe it makes sense, we will schedule a second meeting within the next week at MANSARD’s office.
Step 3: Hold a Second Meeting at MANSARD to Review the Sale Process
The second meeting will take from 45-90 minutes, depending on the amount of questions you have for us. We will review our expert underwriting and valuation of your property, discuss the composition of active buyers in the market and what they are looking for, how we reach them, and then how the transaction process will work from beginning to end. If at the end of the meeting you elect to go forward, we review and sign our exclusive engagement agreement and have the property on the market in the following 1-2 weeks.
To get started today, contact us at MANSARD at (617) 674-2043. We look forward to working with you.
Schedule a Conversation with MANSARD Today
Click
Get direct help with your most pressing questions about
selling your property.