Boston – NAIOP Massachusetts and the New England Chapter of the Society of Office Realtors (SIOR) hosted the 2013 Annual Market Forecast on November 20, 2013 at the Seaport Boston Hotel. Sponsored by Nickerson PR and moderated by David Begelfer, CEO of NAIOP MA, the event featured a panel of commercial real estate experts who discussed industry trends and shared insight on future developments within the market.
Doug Poutasse, Executive Vice President of Bentall Kennedy, began the program by providing an economic overview of both Boston and the nation. In particular, Poutasse noted that the Boston Metro area suffered a less severe recession and has three percent more job growth in comparison to the rest of the country. However, he also commented that improvements and increases in housing supply are still needed to keep up with the Boston Metro demand.
Following Poutasse, Begelfer introduced and welcomed the event’s panel of market experts: John Barry, Partner of Transwestern | RBJ; Alex Dauria, Managing Director of Jones Lang LaSalle; Bob Gibson, Executive Vice President and Partner of CBRE New England; Sarah Lagosh, Director of Eastdil Secured; and Ted Lyon, Senior Managing Director and Principal of Cassidy Turley. The panelists each shared market presentations, focusing on five separate demographic or industry sectors: downtown Boston, the suburbs, industrial, capital markets, and Cambridge.
Dauria explained recent trends occurring within the Greater Boston Area and built off of Poutasse’s call for increased housing supply. According to Dauria, there are only 12 blocks of space available along route 128 for 28 tenants searching for office space of 60,000sf or more. While the suburbs have received $1.7 billion, or 55 percent, of all venture capital investment over the past year, the shortage of Class A office space indicates the supply is overtaking demand.
Within Boston’s urban center, Barry spoke to the “herding effect” occurring within Cambridge and the Seaport District, resulting in the accumulation of high-tech companies within two specific districts. Gibson reiterated Barry’s sentiments by stating that technology businesses are entirely driving office space demand in Cambridge, known for being the home of top-ranked Massachusetts Institute of Technology (MIT).
“We are very pleased to have been able to host such a knowledgeable group of industry experts specializing in diverse range of sectors,” commented Jim Boudrot, President of SIOR New England. “This event gives leaders of our industry the opportunity to come together and reflect on the current trends within our market.”