Next up in our Boston Market Overview recap series, our attention turns to representatives from our Capital Markets team. Brian Doherty, Senior Vice President/Partner, and Biria St. John, Vice Chairman/Partner, reflected on 2016 and selected their draft picks for 2017.
This past year, Boston made the list for “Best Metros for Investment 2016,” breaking into the Top 10 after previously being ranked out of the Top 15.
* denotes metro previously not listed in the Top 15; CBRE Research, Global Investor Intentions Survey 2016
Draft Pick #1: Brian’s 2016 MVP = Urban Core & Value-Add Office
“Boston had the home field advantage in 2016; some huge wins for a lot of Boston-based sponsors included Paradigm at 101 Tremont and Synergy at 101 Summer. These groups had great game plans, flawless execution, plus institutional exits.” – BD
Draft Pick #2: Biria’s Multifamily 2016 MVP = Value-Add Suburban & Urban Infill
“The appeal for value-add space can be distilled down into a few key factors: fundamentals are still solid (outstanding employment market and inward migration) plus basis play that offers stability, durability, but upside with the opportunity to enhance the returns through upgrades.” – BSJ
Draft Pick #3: Biria’s Multifamily 2017 Player to Watch = Suburban Class B/C & Urban Infill
“Millennials want an authentic neighborhood and like local flavor, not the sterile environment that is anchored by national chains and looking to catch a break on the $4.00-5.00/SF rents in downtown Boston.” – BSJ
Draft Pick #4: Brian’s Commercial 2017 Player to Watch = Industrial of All Shapes & Sizes
“Looking back on 2016 and the deals we worked on, industrial product flew off the shelf. There were deep bidder pools, strong institutional interest and buyer support with multiple rounds of offers.” – BD
Draft Pick #5: Brian’s Commercial Flex Pick = Fringe Core Opportunity Plays
“Today, the market is a bit in flux with a Goldilocks Phenomenon occurring. The urban core appears to be getting more expensive by the day and the suburbs feel a bit too risky right now.” – BD
Draft Pick #6: Biria’s Multifamily Flex Pick = Unique Class A Core Assets
“Because of a shift in capital towards value-add and core-plus opportunities, there is the opportunity to pick up some high-quality core assets at slightly higher yields than a year ago.” – BSJ
Stay tuned for our next post, where we will reveal what our Rhode Island experts covered at this year’s CBRE/NE Rhode Island Market Overview.
Did you miss the beginning of our BMO recap series? Click on the following link for Parts 1 and 2.