"Any REIT with a presence in Boston is doing well," PenobscotGroup Inc. principal Frederick Carr tells GlobeSt.com. "Thesurprising thing is how difficult it is for apartment REITs tobreak into the market." The problem is one of approach, the locallybased principal states. "Typically, when they want to break in,they'll have someone from the home office spend a day or two a weekhere, and that's not the way to uncover investmentopportunities."

Of the apartment REITs that are doing it right, he says, theclosest is AvalonBay Communities, which has a long-standing Bostonoffice. But, with the promotion of local office head Bryce Blair topresident and COO and his subsequent relocation to Virginia, Carrquestions how well the trust will perform locally going forward.The move, he tells GlobeSt.com, "might hurt Boston." Blair did notreturn phone calls.

"The mayor will do anything to get more housing going," Carradds. "But if REITs want to develop here, they have to get someoneof sufficient capability on the ground here."