Summers' time

Most of us know the negative news in the Greater Boston commercial RE market: 1.53m s/f of sublease space available; the average asking rental rate down to $41.83 psf; the ten buildings sold to date this year; and the $660.6m paid for the John Hancock Tower in foreclosure. Would you call the following good news (or better news)? Several projects are in initial stages, including 1 Congress St. and the Chiofaro Aquarium garage. And the owners of 185 Franklin St., Verizon's local HQ, are in the early stages of planning a 400,000 s/f addition to the tower. GVA Thompson Hennessey & Ptrs. also notes "The financial services and legal industries will continue to return a considerable amount of space to the market, creating an opportunity for tenants that were previously priced out of the market to upgrade space. Tenants will see an uptick in concessions as landlords compete to fill vacancies." "Tenants have had the upper hand dealing with landlords during the recession," according to Joe Sciolla, managing principal at CresaPartners, "and they will still have some leverage while the market remains flat. [We are] advising tenants to negotiate with landlords to secure concessions now, before they dry up. [Our] firm is recommending that companies either work out short term early lease renewals or lock into long term leases while rates are still favorable." "The Assisted Living sector (of senior housing) has struggled, as more unemployed workers have taken over care responsibilities of their parents to save costs. Last year, occupancy in the segment dropped 5.2% to $3,612 per month," according to Marcus & Millichap. Skilled nursing, as expected, has remained steadier than in other sectors of senior housing subtypes during the economic downturn. (Last year), occupancy fell just 90 basis points to 92.9%. Average per diem revenue, meanwhile, ticked up 4.7% to $229 per bed. Over the past year, through June, occupancy in the Dementia Care segment has declined 260 basis points to 93.8%. Average revenue growth was 3.7% during that period, or $5,409 per occupied unit." Boston University's Metropolitan College is again offering Certificate Programs in R.E. Studies. Gain a competitive edge in RE finance and investment analysis, learn essential skills, lease administration and facility management. Classes start Sept. 14. Register at bu.edu/professional/R030. Refer to priority code CPER030. Negotiate with people as if they are peers. If you believe it, then they will believe it. Kay Koplovitz Ben Summers is the Managing Editor at The New England Real Estate Journal, Norwell, Mass.