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June 16, 2022

Inflation, Interest Rate Hikes Present New Risks For Boston’s Multifamily Market

Life Sciences Remains Red Hot In Watertown. Boston Development Group's CEO Discusses July 19

Boston’s multifamily sector has remained healthy as inflation rises to its highest level in decades. But as recessionary alarm bells have grown louder this week, industry experts said the market faces some risks that shouldn’t be overlooked.

Inflation, Interest Rate Hikes Present New Risks For Boston’s Multifamily Market

Rising interest rates are making new multifamily deals harder to close, and owners of downtown apartments worry that if they continue raising rents to keep up with inflation, cost-conscious tenants may flee for more affordable locations. “Inflation is running the highest it's been in 40 years … and then the question…

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BioMed Realty Lands 5 New Tenants At South End Lab Project

BioMed Realty Lands 5 New Tenants At South End Lab Project

A lab project from BioMed Realty in Boston's South End neighborhood has signed five new leases as it nears completion.PepGen, Pyxis Oncology, Nido Biosciences, Magnet Biomedicine and HilleVax have agreed to lease over 31,600 SF each in the eight-story, 220K SF building at 321 Harrison Ave., the Boston Business Journal reported. The tenants…

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With 900M SF Of Office Leases Expiring By 2025, Owners Are Getting More Aggressive

Office owners have been dealing with more than two years of uncertainty around the future of their properties, but the demand for their space is about to get an even tougher test. 

Roughly 11% of the leased office space in the U.S. is set to expire this year, according to JLL, which equates to about 243M SF — a 40% jump from 2018. By 2025, 900M SF of office leases nationwide is set to expire.

With 900M SF Of Office Leases Expiring By 2025, Owners Are Getting More Aggressive

“There's an anticipation that so much space will become available over the next two years, and landlords are reacting by giving even more concessions,” Vestian Global Workplace Services Chairman Michael Silver said. “It's extraordinary how compounded the situation is, and fierce competition for tenants is breaking out into the open.”Many…

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5 Years Later: Amazon’s Whole Foods Buy A Study In Hubris And Determination

Amazon's attempts to unite brick-and-mortar grocery with its hulking e-commerce operation might have struck fear into the industry when it announced its acquisition of Whole Foods five years ago Thursday, but it has been a bit of a shaky marriage so far.

Since that 2017 buy — and amid redoubled attempts at securing an omnichannel grocery foothold with newer brand Amazon Fresh — the company is learning the hard way that chucking a package of toilet paper onto a stoop is far easier than delivering an insulated bag of raw chicken and fragile produce, and that building customer loyalty can’t be solved with technology and its name alone.

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Workforce Shortages Hamstring Hotel Recovery As Leisure Travel Booms

 

In a small market in Texas, a new hotel operator decided to throw in the towel after less than one year. Despite being packed with guests, a chunk of the hotel's rooms remained out of service due to a chronic staffing issue that finally became too big a burden to bear.

"The owner called me and said, 'I just can't keep it. My wife is going to divorce me if I have to clean another bed,'" said Skyler Cooper, first vice president of investments and senior director of Marcus & Millichap’s Hospitality Division. "I sold the same hotel in the same year, which is unheard of — I've never done that in my 11-year career."

More than two years after the onset of the pandemic, a resurgence of leisure travel has ushered the hotel industry into recovery mode. First-quarter revenue per available room reached $72.20, a 61% increase year-over-year, according to CBRE Hotels. 

Operators are breathing a collective sigh of relief as profit margins begin to normalize. But looming over the renewed zeal for travel is a persistent lack of staff. 

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