Summers' time

GVA Williams' Office Market report for the second half of 2008 says "All indicators suggest the Boston commercial RE market rates have leveled off and even begun to dip in certain sectors. The mortgage backed securities meltdown and resulting credit crunch have drastically changed the climate for investors seeking to purchase, and perhaps more importantly dispose of, commercial RE in Greater Boston. "As we moved into fall, landlords began to be more aggressive about securing lease transactions, most notably in the class B office markets. The class A markets began to see a larger delta between the 'Asking Rate' and the negotiated 'Effective Rental Rate' of lease transactions. Heavily negotiated terms include not only rental rate, but concessions such as free rent, more money for tenant improvements and less stringent lease clauses. "The Back Bay continues to be one of the strongest office markets, although there are some signs that tenants will see some leasing opportunities in the near future. The most notable event was the Christian Science church's decision to offer 209,136 s/f of office space to the marketplace at below-market rates, space which has always been occupied by the church. The developer's recent decision to hold off converting 61,000 s/f at 131 Clarendon St. to residential use has re-introduced more space to the market. "While there were a handful of transactions completed with some large tenants, 180,000 s/f of sublease space was added to the market due to cutbacks by Houghton Mifflin and First Marblehead. More sublease space is anticipated as the economy slows. Boston's capital markets are fairing well, however, relative to other parts for the country. "The Fort Point Channel district has completed its maturation into a stable market which has rental rates on a par with class B assets in the Financial District. It is no longer seen as an opportunity for discounted rental rates, drawing a diverse and established mix of users who want to be in this area on its own merits as an attractive place to be. High end restaurants are coming into the area, truly making it an appealing market." Make friends with the person with whom you are bargaining. Put your bargain in terms of his or her needs, advantages and benefits. Benjamin Franklin