Hartford, Conn. and Springfield, Mass. are both markets offering upside for value-added investors. With the expansion of transportation along the Hartford-Springfield corridor and job creation from the new MGM Springfield, this is an opportune time to consider acquiring a Class-B or Class-C property to reposition as part of your investment real estate portfolio. Here are some of the trends currently shaping the Hartford-Springfield market.
With cap rates at rock bottom and interest rates rising, many investors believe we are at or beyond the peak of the current market cycle. Add a resurgent stock market to the mix and investors may see more attractive yield alternatives beyond real estate. That said, opportunity still exists to add value and grow rents in selected Class-B and Class-C assets throughout the Northeast. In 2017 we will be hosting a series of investor workshops in New York, Boston, New Haven and Hartford/Springfield to address these issues and more.
In our previous blog, we took an early look back at 2013 to review the Connecticut commercial real estate market. The net was that despite concerns about unemployment, budget deficits and various financial crises, the New England economy continued on a path of slow growth recovery.