GREATER BOSTON-Despite mixed economic signals, the area’s real estate market continues to attract investment capital, according to Meredith & Grew’s mid-year report.

The report indicates that on the heels of the sale of the three million Hancock Tower complex during the first quarter, sales activity has subsided. While there is a steady flow of capital and extremely attractive finance rates, sales volume is down considerably for the second quarter of the year.

The good news is that both investor and user demand are still strong for transactions possessing stable cash flow and a credit tenant roster. But suburban office sales are limited, thanks to record-high vacancy rates, heavily scrutinized tenant rosters and well-capitalized landlords. Property owners are surviving due to the low cost of debt but the limited supply has led to a competitive pricing environment. Not surprisingly, the report notes that demand has been strong for industrial products because of their long-term cash flow and low risk.

The multifamily sector had the top sales in terms of transaction size during the second quarter. Over the last year, apartments have garnered interest among investors, including institutional capital and specialized real estate investment trusts. There are currently no class A office towers on the market, however there are several class B buildings on the market that the report predicts will draw significant interest.

Among the report’s forecasts for the second half of the year are that the abundant capital and aggressive buyers, combined with an up tick in leasing velocity, will result in steady investment activity which will include continued corporate dispositions as well as users looking to take advantage of historically low interest rates.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.