Summers' time

Ben Summers

Let's Look, AT mid-year, what CB Richard Ellis' Market Outlook for Greater Boston said six months ago. First, the Metro North Suburban Office Forecast: "After a strong performance in 2007, the section is poised for further strengthening in 2008. The primary driver to this projected growth will be continued tightening of the Downtown Boston, Cambridge and Rte. 128 West markets. As tenants within these areas continue to struggle with escalating rates and limited supply, the Metro North region, specifically Rte. 128 North and Rte. 495 Northeast, will continue to present an alternative supply of viable, high quality lower priced options.

"Metro South Suburban Forecast: The positive trends of the last several years will likely continue at a modest pace. There are several mid-sized (15,000 to 40,000 s/f) tenants in the market that will compete to lease an increasingly limited number of availabilities able to accommodate companies of that size. It should be interesting to observe the velocity of activity that will inevitably flow out of Boston, as the largest tenants look for cost alternatives just south of the city. Of other interest will be the progress of large scale, mixed use developments in Westwood Station and Legacy Place along Rte. 128 in Westwood and Dedham, and Southfield, the redevelopment of the former Naval Air base in Weymouth, Abington and Rockland. It will be a critical year to the success of those projects, and the resulting impact on the office market will be watched closely by landlords and tenants. While many landlords will continue to increase rents this, particularly in the prime class A space, others will readjust overly lofty expectations of market growth and focus on closing deals to increase occupancy.

"Capital Markets: Lower quality assets in secondary and tertiary markets will bear the brunt of the 'credit crunch.' Coastal markets with limited supply of land and new construction, combined with steady job growth, will be attractive to investors across all asset types; multifamily seeing the strongest activity. Strong opportunities on the buy and sell side of commercial RE will be available for investors that remain active in the market."

Thanks, also to Jason Levendusky and Nat Kessler for the north and south suburban forecasts and Bill Moylan for capital markets.

Planning is but another word for the vision that sees a creative achievement before it is manifest. Control is but a name for direction. James Pierce, business leader

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