SURGING COMMERCIAL REAL ESTATE PRICES

  • With pricing reaching new heights in many major markets, some industry professionals are drawing parallels to last cycle’s bubble. Boston is among a group of metros, which also includes New York, London, LA and Chicago, where capital flows and deal activity are surging.
  • Driven by low interest rates, access to global capital and a strong regional economy, office pricing (especially downtown) is still hovering near record highs. Some top-tier Boston buildings are reportedly fetching prices in the $800-$1,000/square foot range.
  • That being said, it may not be time to ring the warning bells just yet. Many of these large deals involve institutional buyers with long-term hold periods that are looking for safe assets and are willing to pay premium pricing.

SURGING COMMERCIAL REAL ESTATE PRICES