The building could sell for less than half what its developers paid to build it
Boston’s wave of buildings selling at lower prices has helped re-set the market, which hasn’t yet happened in Cambridge, said Wil Catlin, senior partner at real estate firm Boston Realty Advisors.
“The Cambridge market is still in a correction phase,” he said. “Boston has a certain activity across the market that I think didn’t exist a year ago. Cambridge doesn’t have that yet.”
That can create “a bit of a standoff” between owner and lender, Catlin said, as lease negotiations become ever more extended. Prior to the pandemic, companies would often snap up space quickly to prevent being shut out of a tight market; now, tenants can take their time. (Indeed, in a recent deal, leadership for a local biotech company said they considered 30 sites when looking for a new headquarters.)
“Lenders don’t want to own real estate,” Catlin said. “They want to lend on real estate.”
Read Full Article Here
Tags: Boston Commercial Real Estate News, Boston Office Leasing, In the News, Wil Catlin
