BOSTON–In a time of uncertainty, Greater Boston is proving its long-term worth through activity in the capital markets, says a report from Boston brokerage firm Hunneman.
“Despite a slowdown in leasing activity, influenced by the global pandemic, for the most part, investors are looking past the short-term horizon and remaining active in the market through the first quarter of 2020,” the report said. “Yes, investors are finding it difficult to achieve immediate gains and holding patterns are becoming more popular, but optimism still persists for those who understand these circumstances are temporary, and compared to other markets, Greater Boston is being looked at as a safe place to park capital through its diverse industry base and its economic backbones of healthcare and education.”
While the investment dynamic for all asset classes may change, sellers and buyers alike are still finding opportunity in what is becoming a more volatile market for the next year, the report said.
“Evidenced by only a small decrease in capital markets activity compared to last quarter, trades are still taking place and traditionally dormant asset classes are becoming more popular through a change in macro trends,” the report said.
Here are some highlights from the Hunneman report:
- industrial assets are being looked at harder now than ever before, in a market that is traditionally dominated by office and multifamily activity.
- Warehousing is becoming ever more important to assist with social distancing efforts through e-commerce services.
- The manufacturing sector is being brought further into the light with assumptions that the nation will conduct more of these operations in our own back yard instead of being dependent on foreign production.
- Drug manufacturing in the region, which has historically piggy-backed off the metro’s robust life science industry is becoming a hot commodity as companies prepare to ramp up production to combat COVID in a variety of ways.
- Untraditional investment vehicles such as urban parking garages are being capitalized on due to the assumption that more people will be less inclined to take public transit in the near future and a dwindling hospitality industry has investors curious about how these assets can be repurposed.
- While the landscape has changed, it is still being navigated and Greater Boston is being considered a comparatively safer place to do so than most major US markets.
