Over the past few years, real estate owners have experienced softer insurance market conditions with favorable rates and coverage terms.
New England commercial real estate activity continued to be a strong performer in 2017 with office vacancies at a pre great recession low, new development continuing throughout the region from the continued transformation of the Seaport area of Boston to the waterfront developments in Portland, ME.
At this time last year the industry looked out at 2017 with a high level of uncertainty. What would be the impact of the new administration? What would tax reforms look like and how quickly could they be implemented? Had property valuations reached their peak?
Here we are in the dead of winter with snow and cold all around us. The smart ones have left for warmer climates but what about the real estate market?
The Greater Portland office market finally surpassed a total market size of 12 million s/f in 2017 in 341 Class A and Class B buildings — due to the addition of several new buildings. Vacancy rates continued to fall for the 8th consecutive year.
2017 was the year of the catastrophic weather and fire event, with three major hurricanes hitting Texas, Florida and the Caribbean, two major fires in California, and an earthquake in Mexico; worldwide catastrophes reached epic proportions.
At the start of each year CBRE/New England presents in Boston its predictions and projections for the year ahead. 25 years ago in 1993, our presentation was at the Harvard Club with 28 attendees. The 1990s were a time of recession, and doom and gloom was everywhere.
For the second year in a row I have the opportunity to consider the New Year’s forecast for the Hospitality Industry here in New England. Last year at this time it was just before the inauguration of President Trump and there were a lot of unanswered questions.
There are a considerable amount of new developments and major re-developments occurring throughout the region. Support for these projects continues with national, regional, and local tenants signing leases and opening storefronts. In Boston, many projects are mixed-use in nature and include a retail component.
Christopher Mellen, CPM is the vice president of the Simon Companies, Braintree, Mass.
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