Category: Spotlight Content

NEREJ invitied commercial real estate professionals to share their perspective on the trends, opportunities and challenges shaping the market this fall and what they see ahead for 2027.

The cost of capital and uncertainty around inflation continue to shape commercial real estate decisions this fall. Buyers are scrutinizing returns, and tenants are looking closely at total occupancy costs and how efficiently their space supports their business.

Where do you see the greatest opportunities in your market or area of expertise as we approach the end of 2026 and look ahead to 2027? Where is New England’s next wave of building coming from? Look at the planning board agendas. Massachusetts’ new multifamily zoning has pushed more than 100 projects and nearly 7,000 homes into the permitting pipeline,

What trends or changes are having the greatest impact on your sector of commercial real estate this fall, and how are they shaping your business? One of the most significant trends we’re seeing is increased investment in existing facilities. Across life sciences, advanced technology, corporate, and academic sectors, organizations are evaluating how to modernize,

What are the biggest challenges your clients are facing in today’s market, and how is your firm helping them navigate those challenges? With continued market uncertainty, clients are looking for clarity before making major capital investments. Understanding project feasibility, budgets, and potential risks early in the process is more important than ever.

What trends or changes are having the greatest impact on your sector of commercial real estate this fall, and how are they shaping your business? There is continued demand for outpatient healthcare and human services environments, including primary care, behavioral health, rehabilitation, and specialized therapy. Providers are increasingly focused on spaces that support efficient operations while creating a welcoming and comfortable experience for patients and staff.

Internal Revenue Code (IRC) Section 1031 allows a property owner, who holds property for “the productive use in a trade or business or for investment”, to defer paying any capital gains taxes if the property owner sells such property, identifies “like kind” property within forty-five days of the sale, and acquires other “like kind” property within 180 days of the sale.

The recent increase in government-backed benchmark rates, particularly U.S. Treasury yields, is working its way into lending rates. The 10-year Treasury rose from 4.18% at year-end 2025 to 5.21% on October 13, 2026, an increase of 103 basis points. Because many fixed-rate commercial mortgages are priced at a spread over Treasury yields, a higher benchmark generally produces a higher loan coupon unless lender spreads compress enough to offset the increase.

As Boston enters the fall housing season, the market finds itself at an important crossroads. After several years of rapid appreciation, limited inventory, and elevated borrowing costs, homeowners, buyers, developers, and real estate professionals are asking a familiar question: How do we navigate a market defined by both opportunity and uncertainty?

As Sullivan & Sullivan Auctioneers approaches its 20th anniversary in 2027, the award-winning, woman-owned firm is entering an exciting new chapter, expanding its presence in New England’s commercial real estate market while building on nearly two decades of auction expertise, client relationships and successful transactions.

Before writing this article, I revisited my Fall Previews from 2023, 2024, and 2025. In retrospect, they captured the broader market accurately. The main themes remain relevant today: more buyers than sellers; a limited supply of hotels for sale; and a growing trend toward renovating and retrofitting older, smaller motels.

The Newmarket Industrial Development Area (IDA) is the largest and one of the last industrial areas in Boston. Over the years, we have represented buyers, tenants, landlords, and sellers in Newmarket and around those South Boston industrial areas.