- Essex and Middlesex counties represented 49% ($152M) of Massachusetts' Q1 2019 commercial real estate transactions, though sales were down 21 transactions, $88M, and 850K SF compared to Q1 2018. Average price per square foot also decreased $86.
- Industrial and flex properties have strong demand but limited inventory, with vacancies low and rents at an all-time high. Office usage is changing as companies relocate to suburbs but still demand amenities. Retail leads sales but average price per square foot fell 40% and vacancies are rising.
- Opportunity Zones have increased available properties by 73% within the counties, with asking prices up 271% on average. Haverhill and
BoyarMiller Breakfast Forum: The Houston Commercial Real Estate Markets – Wha...BoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a panel discussion on the look ahead for Houston’s commercial real estate markets for 2018. Speakers included Jimmy Hinton with HFF, Jonathan Brinsden with Midway and John Nicholson with AVERA Companies.
-U.S. Office Market Was Driven by the Tech
Sector in the Fourth Quarter of 2018
-Absorption exceeds construction completions, vacancy
declines and the pipeline grows
-Tech markets tighten
-Rents rise, but the pace slows:
2021 Emerging Models in Real Estate ReportMike DelPrete
The 2021 Emerging Models in Real Estate Report is focused on the fastest moving, biggest trends in residential real estate tech.
Follow the story of digital disruption, from the rise of online agencies in the U.K. to iBuyers and Power Buyers in the U.S. Track which models are disrupting traditional brokerage businesses, what's driving them on, what's holding them back, and how smart agents are responding.
BoyarMiller Breakfast Forum: The Houston Commercial Real Estate Markets – Wha...BoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a panel discussion on the look ahead for Houston’s commercial real estate markets for 2018. Speakers included Jimmy Hinton with HFF, Jonathan Brinsden with Midway and John Nicholson with AVERA Companies.
-U.S. Office Market Was Driven by the Tech
Sector in the Fourth Quarter of 2018
-Absorption exceeds construction completions, vacancy
declines and the pipeline grows
-Tech markets tighten
-Rents rise, but the pace slows:
2021 Emerging Models in Real Estate ReportMike DelPrete
The 2021 Emerging Models in Real Estate Report is focused on the fastest moving, biggest trends in residential real estate tech.
Follow the story of digital disruption, from the rise of online agencies in the U.K. to iBuyers and Power Buyers in the U.S. Track which models are disrupting traditional brokerage businesses, what's driving them on, what's holding them back, and how smart agents are responding.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
Compass, the self-styled tech-enabled brokerage, recently went public with a valuation of $6.5 billion. If you're in real estate, it's a business worth paying attention to. I'm pleased to offer all of my thoughts, observations, and insights on the recent IPO into a new (free) report!
This new infrastructure has allowed the development of the Industrial Internet to be carried out on super-large-scale collective decision-making wisdom with well-planned coverage of key regions across the country.
Mercer Capital's Value Focus: Real Estate Industry | Q1 2018 | Segment Focus:...Mercer Capital
Mercer Capital's Real Estate Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
Compass, the self-styled tech-enabled brokerage, recently went public with a valuation of $6.5 billion. If you're in real estate, it's a business worth paying attention to. I'm pleased to offer all of my thoughts, observations, and insights on the recent IPO into a new (free) report!
This new infrastructure has allowed the development of the Industrial Internet to be carried out on super-large-scale collective decision-making wisdom with well-planned coverage of key regions across the country.
Mercer Capital's Value Focus: Real Estate Industry | Q1 2018 | Segment Focus:...Mercer Capital
Mercer Capital's Real Estate Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Flexible workspace is not just for millennial freelancers or tech startups anymore. Large, multinational companies are rapidly adding flexible workspaces to their global portfolios. This report examines the global trends taking place within the flexible office sector and the implications for the Great Lakes region.
Here's the latest copy of the Dr. Glenn Mueller’s Real Estate Cycle Monitor Report. Although subjective, it's very interesting and informative. #cre #realestate #realestatemarket
Similar to Commercial real estate market trends Q1 2019 | Massachusetts & New Hampshire (20)
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Rams Garden Bahcelievler - Istanbul - ListingTurkeyListing Turkey
Implemented by Rams Global in Bahcelievler, the Rams Garden Bahcelievler Apartments includes 796 residences of different types from 2+1 to 5+1.
Next to the project, which will have 33 thousand square meters of green area, there will be 42 thousand 300 square meters of woodland. There will also be a 210-meter-long pond in the landscape of the project. There are 94.5 square meters of green space per flat.
Rams Garden Bahcelievler Apartments, which has 8 times more green space than the average of Istanbul with its 33 thousand square meters of green area located within a total of 75 thousand square meters, offers various housing options from 2+1 to 5+1.RAMS Garden has brought a lifeline to the construction industry.
Rams Global, which has signed projects in many places from Dubai to Phuket and delivered more than 20 thousand residences, is now starting new projects in Istanbul.
Rams Garden Bahcelievler is located 9 minutes from Metroport AVM, 5 minutes from Marmara Forum AVM, 12 minutes from Kazlıçeşme beach, 9 minutes from Yıldız Technical University, 7 minutes from Istinye University, 9 minutes from Ramada Hotel and Medicana Hospital.
https://listingturkey.com/property/rams-garden-bahcelievler-apartments/
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Total Environment Tangled Up In The Green - Residential Plots Where Nature an...JagadishKR1
Embark on a journey where lush landscapes and contemporary living converge at Total Environment's Tangled Up In The Green Residential Plots in Devanahalli, Bangalore. Surrounded by verdant expanses, these plots offer an idyllic setting for your dream home. Immerse yourself in the serenity of nature while enjoying the finest amenities and design, where every moment is a harmonious blend of luxury and tranquility.
Keep Your Home Naturally Cool and Warm Out Change in Seasons
Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
Vinra Construction Tech Enabled Company for Eco-Friendly Home Construction
Contact With Vinra for a Greener Future >>> Call us @ 888 4898 765
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Are you searching for your dream home? Finding the perfect house involves more than just browsing listings; it’s about discovering a space that fits your lifestyle and needs. Whether you’re looking for a cozy suburban home, a chic urban apartment, or a spacious rural property, the right real estate can transform your life. Consider the location, amenities, and potential for future growth. Think about the community, nearby schools, and the convenience of shopping and transportation. A good real estate agent can guide you through the process, from identifying suitable properties to negotiating the best deal. Your dream home is out there, waiting to be found – let’s embark on this journey together!
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
2. INDUSTRIAL - 17.7%
OFFICE - 33.7%
FLEX - 9.9%
RETAIL - 38.7%
The following analysis incorporates data from
Essex, Middlesex, and Rockingham counties,
focusing on sales between $1-10M of office,
industrial, flex and retail properties.
CURRENTLY ON THE MARKET: Q1 2019
3. In the first quarter of 2019, 49% of transactions in the state of
Massachusetts took place in Essex or Middlesex county. These two counties
accounted for $152M of the $351M in 2019 first-quarter sales. Heading into
2019, our forecast projected a mild slowdown in market and that has proven
to be true. Compared to this time last year, Q1 2019 sales are behind by 21
transactions, $88M in sales volume, and 850,000 SF of inventory. While the
market has experienced fewer sales overall, the average price per square foot
has also decreased by $86 SF.
Buyers of commercial property in Essex, Middlesex or Rockingham county
continue to be “local,” with 84.2% of buyers living in Massachusetts or
New Hampshire. Of the 15.8% of buyers who were from out of state, 80% of
them purchased either a bulk portfolio or a specialty property. This indicates
that out-of-state buyers in these counties seem to look for efficiency of
scale in this price range, which explains their bulk purchasing behavior.
In a survey of local CRE investors, 66% of respondents said they plan to
increase their capital commitment to CRE over the next 18 months.
Our data says that investors are not heavily interested in adding income-
focused properties to their portfolio this year. Although long term triple-net
(NNN) investments are often the most sought after in mature markets,
popular opinion for 2019 is that a more aggressive strategy such as
value-add or opportunistic investments will be favorable for investors.
A full 89% of investors believe interest rates and property type will be the
biggest disruptors of cap rates. More than half of investors foresee cap rates
remaining the same in 2019, while 33% believe cap rates will rise. Nearly
70% of investors reported they would be less likely to buy commercial
property if interest rates were to drastically rise, while 22% said it would
not have any impact on their purchasing behavior. This would likely mean
they would wait for pricing to adjust to a higher interest rate lending
environment before making additional acquisitions.decrease in average price/SF
ESSEX AND MIDDLESEX COUNTIES
REPRESENT HALF OF THE STATE’S
TRANSACTIONS AS MARKET SLOWS
21fewer transactions
Q1 2018
Q1 2019
COMPARED TO
$88M
less sales volume
850Kfewer SF of inventory
$86decrease in
average price/SF
4. INDUSTRIAL/FLEX PROPERTIES: STRONG DEMAND
Due to a lack of inventory, sales volume of industrial and flex properties is down
47%. Only 10% of properties currently on the market are flex and 18% are industrial.
While inventory is scarce, demand remains strong.
Those purchasing flex properties are pursuing larger building footprints than they
were last year. Of the flex buildings sold YTD 2019, the average building square
footage has increased by 35% from 2018. Vacancies are at a low, and rents are at
an all-time high, up 7% from last year alone.
Combining warehouse and office space provides flexibility for the employer while
reducing costs. While e-commerce continues to boom, demand for industrial and flex
properties is prevalent.
When we surveyed investors regarding rent growth predictions, 56% believed
industrial would have the largest increase in rent growth this year, while 22% favored
retail and 22% favored office. When analyzing industrial properties sold YTD 2019,
57% of them were warehouse, 29% are manufacturing, and 14% are R&D. Industrial
properties in 2019 are selling for roughly 2.25 times their assessed value.
35%increase in average
square footage of
flex buildings sold
(compared to 2018)
SOLD BY MANSARD
5. OFFICE PROPERTIES: CHANGING USAGE
As office rents in major cities continue to rise, many corporations are choosing to
relocate their business to the suburban markets. Although they are willing to stray
from a prime location, they are not willing to give up the Class A amenities, which
may become a problem for some landlords.
One-third of our investors recognized office buildings as a high-risk investment in
2019, but for the right investor they can be quite rewarding. Office buildings are one
of the most volatile commercial properties. They are closely tied to many factors,
such as the economy, job growth, nearby market supply and ever-changing tenant
needs. There are currently 3.5M SF of new office buildings under construction in the
three counties. Office buildings in Essex, Middlesex and Rockingham counties carry a
vacancy rate of 8.5%, while the average vacancy rate is 5.4% among other
property types. The office market will continue to see tremendous changes as
occupiers change the way they use office space.
Data has shown that occupiers are purchasing smaller office buildings in 2019 by an
average of 14,000 SF. Last year at this time, 810,000 SF of office space was
acquired, compared to just 101,087 SF this quarter in the three counties. Studies
have shown that the number of working millennials will soon represent 75% of the
global workforce and 92% of millennials prefer to work remotely. Additionally, the
number of coworking employees is projected to increase by 25% in 2022. While
users can benefit from the lower cost of rent, landlords have the opportunity to earn
more revenue than they would renting to a single tenant. Not only can the coworking
concept be recession proof, landlords will worry less about having a large vacancy
in their building. The combination of these changes is more than enough to create a
major shift in the market. For office buildings to successfully transition into a
coworking space, they will require a greater range of amenities, high class
contemporary design, and advanced smart technology. Landlords investing in this
new trend are seeing better tenant retention, higher net operating incomes and
increased property values.
810,000
LAST YEAR
AT THIS TIME
SF of office space
was acquired
compared to just
101,087
this quarter in the
three counties
SOLD BY MANSARD
6. RETAIL PROPERTIES: LEADING SALES
While some commercial property owners have concerns of retail becoming obsolete,
retail has been the most popular asset type among investors thus far in 2019.
Of all the properties sold so far in 2019, 46% were retail, up from 37% in 2018.
The average price per square foot for retail properties sold year-to-date has fallen
by 40% from last year.
Two-thirds of investors believe retail properties are the highest-risk investment of
2019. Investors looking for higher-risk investment are in luck, as retail properties
account for 39% of properties for sale in the market today. We perceive investors
to be pursuing a higher amount of value add and opportunistic investments in 2019,
which aligns with retail seeing such a high transaction volume this year.
In Essex, Middlesex and Rockingham counties, 35% of retail properties currently on
the market are completely vacant, while 42% are fully occupied. Of the remaining
retail properties for currently for sale, roughly half are at 80% occupancy.
As retail reaches the hyper-supply phase in the market cycle we can expect to see
more vacancies, pushing landlords and investors to strategically innovate. We
anticipate seeing more big box retail properties converted into health facilities,
fitness centers, warehouses and pop-up stores. Landlords, investors and developers
will have plenty of opportunities to creatively overcome the abundance of these
properties. We see retail properties offering services and experiences leading the
way in the investment sales market. Whether that means converting to mixed use,
obtaining a stronger tenant mix, or redevelopment, retail will never be irrelevant.
At this time last year, 590,000 SF of retail properties had transacted, compared to
only 373,937 SF this year. Although retail is slightly behind in sales compared to last
year, it’s evident that the retail sector continues to thrive.
35%of retail properties
on the market
are completely
vacant while
IN ESSEX,
MIDDLESEX AND
ROCKINGHAM
COUNTIES
42%are fully occupied
SOLD BY MANSARD
7. OPPORTUNITY ZONES: INFLUX OF PROPERTIES
Opportunity Zones have generated an influx of buildings on the market within the
three counties. Since the first set of Opportunity Zone locations was released in
April 2018, 86 new Opportunity Zone properties have come to market, accounting
for 73% of the total Opportunity Zone properties for sale in the three counties.
Of all the properties on the market today, 15% are located within an Opportunity
Zone. These properties have hit the market at an average of 271% above their
previous purchase price. The average asking price for Opportunity Zone properties
for sale is $3.1M and the average holding time of current owners is 8 years.
Cities with the highest number of Opportunity Zone properties on the market include
Salem, Peabody, and Lowell, Massachusetts.
Of the properties for sale with Opportunity Zones, 43% are retail, 22% are
industrial/flex, 8% are office, and 26% are land. Data says that buildings located
within an Opportunity Zone are an average of 35 years older than in the other areas.
In the three counties, Essex is home to 58% of Opportunity Zone properties for sale,
Middlesex has 30%, and Rockingham has 12%.
43%
are retail
OF THE PROPERTIES
FOR SALE WITHIN
OPPORTUNITY
ZONES
are industrial/flex
22%
are office
8%
are land
26%
8. STATISTICS BY TOWN: HAVERHILL & METHUEN
Haverhill - The dollar transaction amount from the first quarter of 2019 has
already doubled the total sales of 2018 in Haverhill. Haverhill has transacted
$15.8M in sales, accruing a total of 118,824 SF. The average price per square
foot in Haverhill was $140.
Methuen - In 2018, four properties sold in Methuen, totaling $9.5M in
transactions. In the first quarter of 2019, four properties have sold, totaling
$19.73M. Methuen reported an average price per square foot of $98.
As interest rates climb, so does the cost of living. Many companies are deciding to
relocate to secondary cities, allowing them to reduce costs internally, and increase
affordability for employees. The 12-month net absorption is up 127% in the two
cities, compared to -15.5% in the three counties.
Methuen, Haverhill, Newton and Cambridge lead the way with the highest dollar
amount spent. Methuen, Haverhill and Lowell have transacted the most square
footage. Cambridge, Massachusetts, leads the way for the highest price per square
foot, coming in at an average price of $545/SF. Portsmouth, New Hampshire, came
in second with an average price per square foot of $456/SF. Newton and Woburn
trail behind in the low $300/SF range. The lowest average price per square foot was
reported from Wilmington, Massachusetts, across two transactions, at $23/SF.
WHICH TOWNS
LEAD THE WAY
FOR PRICE PER SF?
1 - CAMBRIDGE. MA
2 - PORTSMOUTH, NH
3 - NEWTON, MA
4 - WOBURN, MA
5 - WILMINGTON, MA
1 2 3 4 5
$545
$456
low
$300s
$23
{
WHY?
9. LOCAL EXPERTISE
More than 85 percent of sales in this area are purchased by MA- or NH-based
investors. MANSARD maintains strong local relationships as well as a database of
qualified buyers for local commercial properties. We know who has owned what
properties, so we can match buyers to the size and types of properties they are
most interested in owning. Going straight to the most-likely buyers saves you time
and hassle, getting you a successful deal at the right price.
MARKET KNOWLEDGE
There is no substitute for understanding the local market trends when selling a
commercial real estate property in Massachusetts and New Hampshire. For instance,
on paper it might have looked like nothing much had changed in the commercial
real estate market in MA and NH between 2017 and 2018. Transaction volume was
about the same both years. But there was a key difference under the surface:
The average price per square foot had increased 23.6%. That meant sellers were
asking for more and buyers were willing to pay. Having a local expert on your team
ensures you get the right price for your local property.
CONFIDENTIALITY
Some owners don’t want their business to be known, especially by their tenants,
so they need a private sale. Because of MANSARD’s excellent relationships in the
local market, you may not require a public sale. We have access to the people
who will pay the right price and close the deal without a public listing.
NON-STOP MARKETING
No real estate deal is complete until its closed. It is not uncommon to have several
agreements reach the final stages then fall through before the deal closes. That
means we never stop marketing your property to new potential buyers until the deal
is officially closed. It takes perseverance to sell a commercial real estate property.
At MANSARD, we’ll help you stay calm and positive as we maneuver through the
offers and negotiations, until we can celebrate the successful sale together.
EXPERIENCE
Over the last 18 years, we’ve become experts in local high-value commercial real
estate sales. We’ve negotiated the sale of more than 1,000 properties using the
MANSARD Portfolio Method. That’s why our clients trust us with their portfolios.
Our commitment to you.
Jeremy Cyrier | 14 Essex Street | Andover, MA 01810 | 617-674-2043 | advisors@mansardcre.com
Jeremy Cyrier, CCIM
President and Commercial
Real Estate Advisor