BOSTON-Much like the stock market, players in the multifamily game seem to be taking a longer view of the bad news of escalating oil heat. According to Ed Shanahan, CEO of the 7,000-member Greater Boston Real Estate Board, “it’s obviously a big issue, and if you believe the media reports, natural gas will skyrocket as well.

“But the owners I’ve spoken with so far are looking at oil costs over a longer period of time than just this winter,” he reports. “I was surprised–as a layman–to learn that they weren’t locking in. Their thinking apparently is to float with the market, because over a five-year term they’ll end up being okay. It’s like playing the stock market.”

According to published reports, quoting US Energy Department statistics, oil heat prices threaten to jump anywhere from 25% to more than 60%. “Owners seem to hope for the best, but they are prepared for the worst,” Shanahan concludes.

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