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Commercial Sales in New England Likely to Slow in 2002

BOSTON, MA-Can commercial real estate sales next year match the record-setting pace set in 2001? With supply down and prices higher than buyers seem willing to pay, it's doubtful the market can sustain the current level of activity next year.

By Sam Zisblatt | Updated on November 29, 2001

BOSTON, MA-With supply down in the commercial real estate market and interest rates beginning to creep up, there is a sense that the 2002 market here might not be as robust as this year’s. And owners of fully occupied buildings with long-term leases aren’t rushing to put properties on the market at the bargain prices that buyers are expecting these days.

According to an undisclosed industry executive with a major brokerage firm, many building owners feel confident that tenants will stay to the end of their leases, many of which carry 10-year terms. Because many of their clients signed tenants to long-term leases within the last couple of years, building owners would rather collect rent than sell in a down market. With statewide vacancy rates remaining low, that trend is likely to last as long as the current economic slump.

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