It’s not surprising to see a surge of activity in December as investors rush to close property sales transactions by the end of the year. But this year was something special, with property sales across the nation much higher than usual after the Presidential Election and continuing right to year end. In fact, we were closing deals right up through the last weekend in December. These last two transactions for 2012 were a student housing property leased to Sacred Heart University in Fairfield, CT, and a 94-unit apartment property in Chicopee, MA.
We’ve closed the pages on 2012 and are looking forward to an even better 2013. In fact, we see the commercial real estate market in the Northeastern U.S. continuing its steady upward momentum this year as vacancies continue to decline and rents rise across all segments of the commercial real estate market — especially for retail and multifamily assets. Vacancy rates over the next four quarters are forecast to decline:
With our recent sale of a student housing property in Connecticut to a private investor from New Jersey, it’s clear that the student market offers an attractive alternative to other investment asset types. This is largely driven by a growing population of undergraduate students in the Northeastern U.S.
As we look to serve the needs of property owners and investors in the mid-market segment in the regional submarkets across the Northeast, we’re particularly excited to have a growing presence in the Boston market. Frankly, we believe it’s a great time to be in the Boston area because that commercial real estate market is one of the brightest spots in the entire country. This is according to a recent report by Moody’s Investors Service, which tracked commercial real estate prices in major markets across the U.S. during the 12-month period that ended September 30.
With a grocery-anchored shopping center recently sold and a new center just listed for sale, we’re starting to see renewed interest and activity in multi-tenant retail assets. As consumer spending starts to firm up, mid-market investors that are patient and willing to adapt to market realities can be expected to come out ahead in this sector as we look to 2013 and beyond. Simply put, with rent growth back on the agenda, the retail sector is expected to offer increased returns as other leased investments continue to lag.
It seems particularly fitting to be blogging on the commercial and multifamily real estate market now, during the same month as the Presidential (and Vice Presidential) Debates. While this is a time of uncertainty for many voters as they listen to the ebb and flow of the debates, the commercial and multifamily real estate market always seems to contain at least of bit of uncertainty to mid-market investors and property owners. With that in mind, our goal here with our blog is the same as our overall company focus – to provide institutional-quality support for mid-market investors.