NAR Predicts Boston Will Be the Hottest Market in US for Office and Multifamily

BOSTON-Despite an economic slowdown, commercial real estate markets are healthy according to the National Association of Realtors. Based on rent growth, the Washington, DC-based organization forecasts that Boston is going to be one of the hottest markets in the country in 2001.

The National Association of Realtors Commercial Real Estate Quarterly provided market sector forecasts for this year for five major commercial sectors. For the office market, Boston ranked number one with Newark, NJ, Austin, TX and New York City behind. Boston also ranked number one in the multifamily market followed by Los Angeles, Detroit and Minneapolis. In the warehouse market Boston ranked number three, with Phoenix and San Francisco ranking numbers one and two. Boston also ranked number three in the lodging market behind San Diego and New York City.

“When you compare rent growth to last year, it is definitely lower, but we are forecasting a slower economy,” Sigrid Fennemore, a senior economist at the NAR, tells GlobeSt.com. “Boston is a very resilient market in that given the backdrop of the slower economy, rent growth is still strong.” Fennemore points out that compared to last year’s booming economy, all performances are slower. Last year’s Real Growth Domestic Product was 5% while the Real Growth Domestic Product for 2001 is estimated to be 2.7%.