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April 29, 2021

Boston's Coworking Demand Shifts From Downtown To Suburbs

[Digital Summit] Hobbs Brook Real Estate CEO talks Waltham Market & getting Spec Life Sciences project in the suburbs May 26

Boston’s suburban coworking operators are enjoying a healthy appetite for their space as the coronavirus pandemic has brought forth a reckoning on downtown office needs.

Coworking titan WeWork has given back three of its Boston locations, and a slew of smaller operators have shuttered in the past year amid historic struggles for the Boston office market. But competitors in the suburbs are rebounding and in some cases expanding, benefiting from employers seeking a compromise between working from home and commuting, coworking leaders said.

Boston's Coworking Demand Shifts From Downtown To Suburbs

Renters have left the pricey Boston metro for cheaper suburbs and are opting for shorter desk and private office commitments.“Our Needham location, which we opened during the pandemic in May, we have a waiting list for offices at that location right now,” Workbar

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Alexandria Capturing Surge In Life Sciences Leasing Activity

Alexandria Capturing Surge In Life Sciences Leasing Activity

Life sciences developer Alexandria Real Estate Equities has made the most of its dominant position in the fast-growing asset class with one of its best leasing quarters in years, executives said this week.It has already generated significant leasing activity at two acquisitions it made in 2021. Vaccine manufacturer

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CRE Investors, Developers See Risk Everywhere In Biden Tax Proposal

Commercial real estate developers and investors hit the panic button Wednesday after President Joe Biden introduced a $1.8 trillion tax-and-spend plan that offsets its price tag by relying heavily on taxing commercial real estate transactions.

"Preposterous," Dallas developer Dreien Opportunity Partners CEO Sam Ware said of the plan. "[It's] not thought out [and] kills the jobmakers and risk-takers."

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The Innovators: Apprise

 

For decades, the appraisal industry — an important cog in the commercial real estate ecosystem — has operated with a largely manual workflow, with appraisers using Excel spreadsheets and Word documents to aggregate property information. 

Walker & Dunlop and Dutch valuation tech firm GeoPhy set out to change that in January 2020 by launching Apprise, an appraisal company that uses machine learning to speed up the process dramatically.

The need for speed became even more pronounced two months after the company launched, as the coronavirus pandemic disrupted the commercial real estate industry and injected uncertainty into assets that had long been stable. Apprise Chief Operating Officer Nicole Urquhart-Bradley, who leads the company alongside Managing Director Meghan Czechowski, said this disruption gave the company the ability to stand out in the market.

"Any time there's an event, whether it's an economic event or this unprecedented pandemic, it creates a lot of uncertainty in the market," Urquhart-Bradley said. "We've been able to take real-time data and technology and create a product for answers for clients that some of our competitors cannot do, most of our competitors cannot do." 

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'Perfect Storm' Of Construction Cost Spikes Wreaking Havoc On Contractors, Developers

 

The cost of construction materials — things like lumber, steel, wood paneling, flooring and joint compound — has collectively risen close to 13% over the last year, the largest annual spike since 2008.

The ripple effects for the real estate industry from such a sudden cost increase are vast: Projects are getting delayed and development timelines are lengthening, and developers are considering strategy shifts to avoid using the material most in demand, lumber. Ultimately, the costs will lead to higher rents and higher prices for real estate.

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