First-time mortgage applications have fallen for five straight weeks and Y-o-Y activity is now down a painful 35%. Add to that a 42-point fall in the NAHB Housing Market index for March to 30, the lowest level since 6/12 and the biggest decline in the Index’s 35-year history. With March housing starts down 22%, it’s clear the housing industry, which had been going gangbusters, is suddenly very troubled.
Boston Real Estate Market
Solid Q1 Fundamentals Point To Quick Boston Recovery 4/7/20, 10:58 AM
Tim Carroll, Bisnow Assistant News Editor
Even amid the uncertainty of the coronavirus pandemic, data from the first quarter of the year show Boston is in a unique position to persevere.
Bolstered by a diversified economy that counts among its chief drivers countercyclical industries such as healthcare and education, the city’s commercial real estate prospects look good, Colliers Boston Managing Director of Research and Client Services Aaron Jodka said. The region’s fundamental real estate numbers prior to the economic crisis indicate that, while the drop may be precipitous, Greater Boston's rebound could be sharp
“Rents were all-time highs in Boston, all-time highs in Cambridge and performing well in the suburbs,” Jodka said. “The underlying fundamentals were strong.”
A Q1 report from Newmark Knight Frank was similarly bullish, pointing to the region’s economic versatility.
“The metro area’s large, diversified and innovative economy will prove vital to the area’s long-term growth story,” the
Perhaps the most confidence-inspiring Q1 data came from new projects, Jodka said. He pointed to Hines breaking ground on its 1.1M SF, 678-foot tower over South Station and other air-rights projects as indicators of a strong market, saying those were deals the city hadn’t seen since the development of Copley Place in the 1980s.
Boston’s office vacancy rose from 11.3% to 11.7% in Q1, but it remained at a cyclical low of 7.1% in the central business district, NKF found. The office sector experienced negative net absorption of 51K SF, according to NKF’s report. The Colliers report pegged Boston’s negative net absorption at 155K SF across all sectors.
Colliers also found overall positive net absorption of 127K SF and 363K SF in Cambridge and the suburbs, respectively.
The spread of the coronavirus and resultant widespread work-from-home policies will dampen gains in the office market across the country. But Boston’s office market is partly driven by technology firms essential to people working from home, insulating it from the broader economic shutdown.
“We have cybersecurity as a growing driver here,” Jodka said. “LogMeIn and GoToMeeting, they’re busy with everyone working from home, so we have a number of these technologies that are at the forefront of what’s happening today and what will happen tomorrow.”
An industrial sector report from NKF shows even greater reason for optimism. Rents grew 1.9% in Q1, marking the 13th consecutive quarter of positive growth. Industrial vacancy decreased to 5.9% despite 467K SF of deliveries, and there was positive net absorption of more than 919K SF.
“While uncertainty looms, expect the industrial market to press forward as normal,” NKF officials wrote in the report. “Expect tenants to continue to transact to meet growing demand, and expect buyers and sellers to operate quickly to take advantage of market
conditions before a potential shift.”
With the uncertainty of the pandemic, in spite of the presence of recession-resistant industries in Boston, the office market is due for a downturn, Jodka said. But when it gets better, it should be a sharp rebound.
The latest issue of the Christie’s International Real Estate magazine looks at how selling your art at auction works. Lift the veil on the process with the easy step-by-step guide below.
First Things First
Do your research. Figure out if now’s the best time to sell your piece. You can check how the artist is selling on sites like the Artnet’s Price Database. When you’re ready to move forward, it’s time to give Christie’s a call.
Will they take it?
You’re ready for Christie’s to sell your piece, but is Christie’s ready? Through either an in-person meeting or via photos, the experts will determine if Christie’s can sell the piece for the price you expect.
Setting the Stage
Christie’s is confident your piece will sell. Now it’s time to determine how you want that to happen. There are three avenues:
- In the salesroom – as part of a public auction in Christie’s calendar.
- Private auction – sells outside auction calendar
- Online auction – to attract online buyers and millennials.
While considering your options, check out Christie’s calendar to see if an upcoming public auction is right for you.
Before the Bids
Your art must get to Christie’s. You can arrange for delivery or Christie’s can help. Once at the auction house, it will be photographed and catalogued. The experts determine the interest in the piece and work with you to set a reserve price before the sale.
You won’t want to miss this! Enjoy the rush of the auction in-person or via Christie’s LIVE remote streaming.
After the sale, Christie’s gives you the final sales price and your net proceeds after commission is accounted for. Then it’s payday. Payment from the buyer usually arrives in your account 35 days after the auction.
Want to read more about Christie’s auction houses and real estate affiliates? Pick up a copy of the latest magazine at one of our LandVest offices.
Interested in learning more? Email us at email@example.com.
Give us an idea of what you are interested in selling so we can connect you with the right specialist.