News
FEW DEALS, RISING VALUES
June 2, 2010
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| For those with faith in Boston commercial property despite fewer sales, Reis? Victor Calanog says, you're right on course. Deal volume fell last year to about $1.5B, from a peak of $6.2B in ?06. Sure, there have been some distress sales like the iconic Hancock Tower that went for $1.3B in late ?06, and again for about $700M at foreclosure in March '09. But take heart, last year Boston's average sale price rose to $421/SF, from $284 four years ago. The explanation is constrained supply and quality assets, buildings filled with credit worthy tenants drawn by Class A finishes, amenities and access. Even in the dark days of Jan. '09, One Beacon sold for $508M, or $931/SF. |
