Greater Boston Commercial Real Estate Market Insights & Trends for Owners

In this video Jeremy Cyrier from MANSARD will be giving an update on the year-end sales numbers for 2022 for office, retail, flex and industrial sales in the greater Boston and southern NH markets.

MANSARD has pulled together all of the trades that happened in Rockingham, Essex, and Middlesex Counties, valued between $1M and $100M in 2022. In this video Jeremy is going to show you some data, charts, and market cycle trend information. We hope you enjoy it, and if you do, please give us a thumbs up, subscribe to our channel.

“This is our year-end review of 2022 looking at the market for Rockingham, Essex and Middlesex Counties. So we’re really focused on greater Boston sales trends, commercial sales trends. This is identifying the office, industrial and retail markets valued between $1M and $100M. So when we look at the market, what we like to do is look at it in a perspective historically, and we track data going back to 2006, so we can see the market cycle year-by-year for sales volume by buildings traded. And what this gives us a sense of is the relative stage of the market and how active it is. And as you can see here, we had a peak year in 2021 with 829 sales really dwarfing all of the prior years going back to 2006, even 2022 ended up as a very strong year with a long-term average at 455 sales per year. So what we saw in 2022 was about 707 trades, which is still quite strong. Looking at our year-over-year effective change in year-to-date sales, we can see the slowdown in the market, namely the transition here that looks somewhat like this downward trend in the 2007 Great Recession into 2008, just the scale of the velocity of slowdown. Now, not as deep an effective change. As you can see, we ended 2022 with a 21% year-over-year change. And that is a strong change in velocity, but not anywhere as grave or dire as we saw back in 2007, 2008, when transaction of volume plummeted severely. The 10 Year Treasury been very popular in the news. If you’re reading financial news, you’re seeing the constant references to the yield of the 10 Year Treasury. Looking at it historically, you can see we did bottom out in 2020 with an average yield that was phenomenally low, just around that 1% mark. We ended 2022 with a 10 Year Treasury at about 3.5%. Because we started the year at the lower end of the range, our average yield for the year came in on the chart just below 3%. But what’s interesting is looking at the annual percentage change, you can see here that the dramatic increase in the 10 Year Treasury by the Federal Reserve shows just this very sharp up into the right trajectory of change. And it does make me wonder how much further this is really going to go. There’s chatter about a rate increase here in early 2023, but wondering, and I’m thinking maybe this is going to start to taper. And if you look at this percentage change, you’ll see that the interest rate policy going back to 1990, an annual percentage change, does tend to fluctuate. We’re accustomed to changes in the last 10 years, but it’s interesting here that we’ve seen such rapid change. Will we see this level off? Will we see it start to come down? When will it start to come down? We’re not really sure. Looking at sales volume in relation to the prior years, again, that annual transaction velocity from 2006 to 2022, 455 deals per year of trading hands on average. It’s about $2.7B annually that we see in the market. Last year, 2022, we saw 707 transactions and $4.7B in volume. Now granted, there’s some appreciation in that number, but looking at the sales volume in the market, we can see here that we are still very busy. The question is, when did the market start to decelerate? And when we look at 2021 in relation to 2022 and we start plotting these Fed rate hikes in 2022, we see here that the market really didn’t start to respond until about October, November, and December where we saw a tapering of sales happening. And so it was really the shock of those May, June and July rates hitting the market that we started to see the deals closing in October, November, December, reflecting the changing environment. So we’re expecting to see that continue into 2023. I would be surprised if we had another 707 unit sale this year. My expectation is we’re going to trend down more toward the long-term average this year in volume…”
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Welcome to our How’s The Market? update here at MANSARD. One of the things that we know here at the company is that finding the right commercial real estate buyer who performs on a deal can be hard to do, and bad deals made with wrong buyers lead to failed sales. It’s embarrassing, and you can end up with a discounted sale price, which is a terrible thing. So, we developed a 42-point process to connect commercial real estate owners with high performing buyers who pay the right price so that they experience financially meaningful life events with their investments in real estate.

So, when you sell to the right buyer, you experience a financially meaningful life event with your real estate investment and that’s what this is all about. That’s why we develop and share these market insights in this data because if you don’t understand what’s happening in the market in real time, it’s going to be hard to make the right real estate decision. So, we’ve taken data from Middlesex and Rockingham Counties. These are representative to the Boston suburbs and how we track the sale of retail, office, and industrial properties from 1 to 100 million on an annual basis. The reason why we do this is because we want to understand how making the right real estate decision fits into the overall timing of the market.

We have taken data from Middlesex and Rockingham Counties. These are representative to the Boston suburbs and we track the sale of retail office and industrial properties from one to 100 million on an annual basis. The reason why we do this is because we wanna understand how making the right real estate decision fits into the overall timing of the market.

If you want to be kept in the loop on what’s going on, and if you are interested in learning more about us, you can visit our website at www.mansardce.com. We’re here to help and if you have any questions, feel free to reach out. We look forward to seeing you on our next market update!

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…
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Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…
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Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…
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Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…
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Follow MANSARD on Facebook: https://www.facebook.com/mansardcre

Welcome to our, How’s The Market? update here at MANSARD. One of the things that we know here at the company is that finding the right commercial real estate buyer who performs on a deal can be hard to do, and bad deals made with wrong buyers lead to failed sales. It’s embarrassing, and you can end up with a discounted sale price, which is a terrible thing. So, we developed a 42-point process to connect commercial real estate owners with high performing buyers who pay the right price so that they experience financially meaningful life events with their investments in real estate.

So, when you sell to the right buyer, you experience a financially meaningful life event with your real estate investment and that’s what this is all about. That’s why we develop and share these market insights in this data because if you don’t understand what’s happening in the market in real time, it’s going to be hard to make the right real estate decision. So, we’ve taken data from Middlesex and Rockingham Counties. These are representative to the Boston suburbs and how we track the sale of retail, office, and industrial properties from 1 to 100 million on an annual basis. The reason why we do this is because we want to understand how making the right real estate decision fits into the overall timing of the market.

In this three-minute video, Jeremy Cyrier, CCIM President & Commercial Real Estate Advisor at MANSARD gives a 2022 update on the office market. Jeremy will take you through some new data, latest sales trends as well as what’s happening in the markets.

The office market is a challenging asset class. It’s become more and more difficult to underwrite, given the rapidly changing and reconfiguring of demand in the tenant market, for how companies are using office space. Pricing wise, we’re seeing pricing bounced in 2020, and we saw this 2021 pricing that was actually pretty good, over $200 a square foot, but that seems to be showing signs of leveling in our market. I think that we’ve got some risks in the market, there’s some deceleration happening. 2022 looks like it’s going to be more of a 2018 or 2016 year, by number of trades for office buildings in the market. So, we may start to see some continued softening in the office market, as the tenant demand story unfolds, where we see leases starting to roll over. Determining whether we’re going to see continued occupancy, or continued leasing of space, as companies try to sort out hybrid versus full time in the office.

If you want to be kept in the loop on what’s going on, and if you are interested in learning more about us, you can visit our website at www.mansardce.com. We’re here to help and if you have any questions, feel free to reach out. We look forward to seeing you on our next market update!

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…
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Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…
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Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…
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Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…
~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…
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Follow MANSARD on Facebook: https://www.facebook.com/mansardcre

Welcome to our How’s The Market? update here at MANSARD. One of the things that we know here at the company is that finding the right commercial real estate buyer who performs on a deal can be hard to do, and bad deals made with wrong buyers lead to failed sales. It’s embarrassing, and you can end up with a discounted sale price, which is a terrible thing. So, we developed a 42-point process to connect commercial real estate owners with high performing buyers who pay the right price so that they experience financially meaningful life events with their investments in real estate.

So, when you sell to the right buyer, you experience a financially meaningful life event with your real estate investment and that’s what this is all about. That’s why we develop and share these market insights in this data because if you don’t understand what’s happening in the market in real time, it’s going to be hard to make the right real estate decision. So, we’ve taken data from Middlesex and Rockingham Counties. These are representative to the Boston suburbs and how we track the sale of retail, office, and industrial properties from 1 to 100 million on an annual basis. The reason why we do this is because we want to understand how making the right real estate decision fits into the overall timing of the market.

In this less than three-minute video, Jeremy Cyrier, CCIM President & Commercial Real Estate Advisor at MANSARD gives a 2022 update on the industrial market. Jeremy will take you through some new data, latest sales trends as well as what’s happening in the markets.

The industrial market has really been the headline asset class for all of us in the real estate market. It’s been very active, very tight, and we have seen a lot of new construction starting to come into the market over that 100,000 square foot mark, where it makes sense to build new supply in the market. If you’re under 100,000 square feet, we’re still seeing user demand that’s highly active in that 15 to 50 to 60,000 square foot range. They are having a difficult time finding space in the market. These buildings are continuing to trade very aggressively.

2022, a very active year to date, and we’re looking at a year that may end up having a similar number of buildings traded as 2020. It will not be as busy as 2021, but we still see industrial holding up as a very strong asset class with great pricing. You can see here the average price per square foot in the three counties we pulled the data from is in that $187-$188/foot range across all industrial, so a very strong asset class.

We are starting to see some rents leveling off and some pricing leveling off, and that’s really being driven primarily by the interest rates in the market. Dr. Glenn Mueller here looking out into the second quarter of ’23, he’s saying Boston is at that peak phase, late expansion, where we’re going to continue to see high demand for the asset class on the user side and the investment side.

If you want to be kept in the loop on what’s going on, and if you are interested in learning more about us, you can visit our website at www.mansardce.com. We’re here to help and if you have any questions, feel free to reach out. We look forward to seeing you on our next market update!

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…
~~~~
Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…
~~~~
Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…
~~~~
Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…
~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…
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Follow MANSARD on Facebook: https://www.facebook.com/mansardcre

Welcome to our, How’s The Market? update here at MANSARD. One of the things that we know here at the company is that finding the right commercial real estate buyer who performs on a deal can be hard to do, and bad deals made with wrong buyers lead to failed sales. It’s embarrassing, and you can end up with a discounted sale price, which is a terrible thing. So, we developed a 42-point process to connect commercial real estate owners with high performing buyers who pay the right price so that they experience financially meaningful life events with their investments in real estate.

So, when you sell to the right buyer, you experience a financially meaningful life event with your real estate investment and that’s what this is all about. That’s why we develop and share these market insights in this data because if you don’t understand what’s happening in the market in real time, it’s going to be hard to make the right real estate decision. So, we’ve taken data from Middlesex and Rockingham Counties. These are representative to the Boston suburbs and how we track the sale of retail, office, and industrial properties from 1 to 100 million on an annual basis. The reason why we do this is because we want to understand how making the right real estate decision fits into the overall timing of the market.

In this two-and-a-half-minute video, Jeremy Cyrier, CCIM President & Commercial Real Estate Advisor at MANSARD gives a 2022 update on the retail market. Jeremy will take you through some new data, latest sales trends as well as what’s happening in the markets.

The big question right now is, what’s the impact of interest rates going to be? How high are they going to go? And how long is this going to go for? We’re going to look at what’s happening in the market and how the data is showing us what is occurring.

If you want to be kept in the loop on what’s going on, and if you are interested in learning more about us, you can visit our website at www.mansardce.com. We’re here to help and if you have any questions, feel free to reach out. We look forward to seeing you on our next market update!

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…
~~~~
Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…
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Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…
~~~~
Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…
~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…
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Follow MANSARD on Facebook: https://www.facebook.com/mansardcre

380 Main Street Wilmington, MA is a well-maintained mixed-use building with a long history of high occupancy rentals and dependable rent growth. The property consists of 1 retail space and 5 residential units. With easy access to I-93 and the Wilmington MBTA station across the street, 380 Main Street is 100% occupied with long-term tenants below market rents. The current owner has made many updates to the property including new windows and updated electric service. The 4,415.0 SF 6-unit mixed-use building is set on Main Street in Wilmington, MA. With easy access to I93 and Commuter Rail Wilmington T stop, this location is perfect for any small business looking for steady income through retail storefronts while generating income from residential apartments. Wilmington is a town in Middlesex County, Massachusetts, United States. Its population was 23,349 as of the 2020 United States Census. This property has been meticulously cared for and updated by the current owner. The first level features two commercial storefronts that are both leased on a NNN basis with long-term tenants in place. There are also two one-bedroom apartments on the second level that have been updated and are currently leased.

Want to learn more? https://masscommercialproperties.com/listings/?propertyId=1078907-sale

Are you looking to sell your commercial real estate?

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Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…

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Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…

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Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…

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00:00 Introduction
00:53 Approaching the market
01:27 When buyers ask for extensions
02:34 What happens with the 3rd buyer

Union Office renovated this 20,704 SF flex property in 2009 as its Boston market headquarters. Located .75 miles from Exit 41 at the 93/125 interchange, 226 Andover Street is offered free and clear of existing financing, three years of net lease weighted average lease term, and 4% annual rental rate growth. The property features two tailboard loading docs, one drive-in door, 16′ clear height, and is 100% air-conditioned. In 2022, Union Office extended its lease showing an ongoing commitment to this headquarters location.

Property Highlights:
– 4% annual rental rate growth
– 3 years of weighted average lease term
– .75 miles from Exit 41 along Route 93
– High-occupancy asset class in an undersupplied market

Want to learn more? https://masscommercialproperties.com/listings/?propertyId=1107143-sale

Are you looking to sell your commercial real estate?

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Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…

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Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…

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Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…

~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…

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00:00 Introduction
00:53 Approaching the market
01:27 When buyers ask for extensions
02:34 What happens with the 3rd buyer

Watch how this industrial property seller sold for $500,000 more than his original offer. After selling his company he was left with a vacant industrial property to sell and needed a buyer to pay him the right price.

Video Highlights:

Jeremy:
I wanted to catch up this morning and talk about Groveland. You just closed on a sale there. It was a business owner who sold his company, and came to us because he had the industrial building where he was housing his company left over and wanted to get rid of it.

Josh:
He owned this company and he owned the real estate together. He operated his company out of the building and then ended up selling the company, and so he was stuck with the real estate. The lease was ending for the company. That company was then purchased by another company and they were planning on moving out of the property, so he was going to be stuck with vacant property in about six months from the time we took it on.

Josh:
Basically he had attempted to market it himself, and was just getting bogged down with a lot of tire kickers and low offers, and was just unhappy with the market and how they were coming to him. He wanted to get some professional help, and so we took him on as a qualified seller. We met with him, we brought him through our process, and determined that he was a qualified seller.

Jeremy:
What you’re saying is this guy had sold his company, the company that bought his company signed a lease for say six months while they transitioned the operations out of the building, so he was facing a looming vacancy. He no longer needed the building, so he tried to market the building himself, find buyers, and ended up with a lot of tire kickers, people who were coming in, making lowball offers, really spinning his wheels and wasting his time. Would you say that the sale of this piece of real estate in Groveland was critical to his retirement plan?

Josh:
It was. He was going to be stuck with an asset with negative cash flow, and he wanted to sell the property to be able to retire with his wife, actually.

Jeremy:
Interesting. He had successfully sold the company, which is not easy to do, then he had the building left over. Needed to dispose of that so he could transition the equity, this was a big deal for him and get as much capital out of the property as possible, so he could retire with his wife?

Jeremy:
After trying to do it himself, he hired our team, and you spearheaded the effort to take them through our sale process. Tell me what happened when you went to market.

Josh:
We went to market and we had a lot of good activity. There were a few lowball offers, but essentially we sourced four offers on the property. All of them were above what he was actually looking to get, and we ended up selling on a deal with a direct user. During that time there was some difficulties, and that deal ended up falling through. Through our continuous marketing period, we were able to set up a new deal within 30 minutes of the old one falling apart.

Jeremy:
In terms of the sale price, so the high to low, he had gotten offers on his own. What was a typical offer price he was seeing in the market for his building?

Josh:
When he was trying to market it himself, he was seeing offers from 700,000. Someone offered him 500,000 and they were all under a million, which he wasn’t too happy with.

Jeremy:
1.25 was the final sale price, so he ended up selling about 500,000 to 750,000 over the lowball, time-wasting people that were coming to him. Maybe they sensed that he was motivated, not in the right way, to exit the building, because he had sold his company. Maybe he was showing some of that to the market, that he was nervous, and they were taking advantage of that. Having us run the process and be his intermediary and representing him, we were able to protect his interest from the market seeing those things and then negotiate the highest value. An extra half a million in his retirement with his wife, a big deal for this guy, right?

Josh:
First-time seller, very nervous. I think some people sense that, try and take advantage of that. He was scared of making a mistake, because this was a significant transaction for him. This was his retirement, and he didn’t want to mess that up.

Jeremy:
Yeah. It’s not uncommon. We see one of the primary reasons why people end up selling a piece of commercial real estate is because they’ve sold, closed or relocated their company. This was exactly one of those reasons why. He’s not a professional commercial real estate investor. He doesn’t do this every year or three years or five years. This is the kind of thing where he has a facility that is now surplus and he needs to sell it, but it goes into the whole picture of maximizing his returns, getting as much money out as possible, because this is a direct investment for this gentleman, and making sure that he realized the full market value of the property was essential to him feeling confident about his sale.

1141 Bridge Street is a 5,352 SF retail property investment that is 100% leased to 3 quality tenants. This stand alone retail property was constructed in 2011 with recent renovations 2019. The retail investment property has surface level parking, has been meticulously maintained, features low maintenance construction materials, 19 parking spots, and is located in Lowell, MA. The existing tenants include Smiley Dental, People Ready, and Bark Avenue. The retail property is shadow anchored by Market Basket with other nearby national retailers which include Dunkin’ Donuts, McDonald’s, Subway, and more. The site benefits from close proximity to residential neighborhoods and has easy access to public transportation including the MBTA Bus line with over 13,000 vehicles passing per day.

Want to learn more? https://buff.ly/3QiHaSe

Are you looking to sell your commercial real estate?

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…

~~~~
Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…

~~~~
Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…

~~~~
Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…

~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…

~~~~
Follow MANSARD on Facebook: https://www.facebook.com/mansardcre

The best way to sell a commercial property is to have an ongoing commercial property marketing strategy that keeps buyers interested in your commercial real estate sale.

In this video, I share the #1 provision to eliminate in your buyer’s offer. And I’ll show how one owner achieved a 10X equity multiple allowing the buyer to double its food distribution to 10M tons of food per year.

See why continuous marketing is the best way to sell commercial property to the right buyer for the right price with confidence.

Are you looking to sell your commercial real estate?

~~~~
Subscribe to MANSARD’s Youtube Channel: https://www.youtube.com/channel/UCGn7…

~~~~
Check Out Our Latest Video: https://www.tubebuddy.com/quicknav/la…

~~~~
Get Your Selling & Capital Gains Tax Guide: https://masscommercialproperties.com/…

~~~~
Want to know how to calculate commercial real estate value? https://masscommercialproperties.com/…

~~~~
Connect with MANSARD on LinkedIn: https://www.linkedin.com/in/jeremycyr…

~~~~
Follow MANSARD on Facebook: https://www.facebook.com/mansardcre
00:00 Introduction
00:53 Approaching the market
01:27 When buyers ask for extensions
02:34 What happens with the 3rd buyer