Even so, Campoli acceded that the investment sales world is markedly different than it was a year ago. The thought of a recession "is a real fear," she said, and the lack of debt is making it hard for leveraged buyers to operate. Many owners are entertaining a possible sale, but Campoli said there is "another camp" that feels the real estate market is sufficiently vibrant enough that they do not need to test a market leaning back in favor of the buyers. Bottom-feeding will be limited as a result, and Campoli indicated she does expect a sharp decline in property sales overall in 2008 despite interest in certain sections such as Downtown Boston and Cambridge.

Fundamentally speaking, Greater Boston had a strong year across the boards from Downtown, Cambridge and the suburbs, reported M&G professionals Ronald Perry, Joseph Flaherty and James Elcock, respectively. The head of the Downtown team, Perry reported an 8.7% vacancy rate for the 57 million sf Boston market, well below the peak of 16.7% seen in 2004. Blackstone Group's buyout of Equity Office Properties was among the milestones of 2007, he noted, and that firm's dominating presence coupled with dwindling supply helped spike office rents dramatically. Rents are rising across all spectrums, but the rate fluctuates between class B and class A tower space, Perry said, ranging from $35 to $75 per sf, while a few small deals are scraping the $100 per sf level rarely if ever seen in Boston. A more moderate rise of 5% to 10% rise is seen for 2008, Perry says.

Across the river in Cambridge, office and laboratory activity was especially brisk to begin the year but tapered off in the third and fourth quarters, according to Flaherty. New lab supply pushed the vacancy rate up to 13.7%, while large blocks of office space became virtually non-existent. Rents and other factors sparked tenants to migrate out to the suburbs from Cambridge to the tune of 550,000 sf and eight major defections, said Flaherty. More departures are expected, but Cambridge's strength as a global business address offers hope that demand will keep landlords busy, he said.

Suburban Boston also had a solid 2007, said Elcock, particularly for Route 128 Northwest and Interstate 495 North. Some 2.4 million sf of net absorption was recorded for the year in the suburbs, he said, and rental rates grew substantially in top markets such as Waltham. Businesses are keeping an eye on the US economy, said Elcock, and there have been some examples of sublease activity on the rise, but overall the EVP offered a bright outlook. "We are well-poised for a balanced year," he said.

The retail arena was battered by a harsh holiday season, industry specialist Ted Chryssicas reported in his remarks, but he said there were bright spots locally. Among them was the opening of the high-end Natick Collection complex in suburban Boston and the repositioning of Linden Square in Wellesley. A major retail component is being added to Gillette Stadium in Foxborough, and Chryssicas said there is evidence international shoppers are flooding Boston to take advantage of the weak dollar. Colliers M&G even provided its own economic stimulus plan, with Chryssicas announcing to the audience there were 10 gift cards for outdoor retailer REI hidden under random seats. "Go out and spend, spend, spend and boost the economy," he implored the lucky winners.

In his diverse remarks that closed out the program, Daley discussed global economic trends and the impact a US recession would have on the world, lobbied for a resolution of the immigration impasse--"a serious problem," he stressed--and gave insights into the presidential election while revealing his role advising surging US Sen. Barack Obama. Daley also praised the proposed stimulus package coming out of Congress but lobbied audience members to provide for the less fortunate on a consistent basis, an exhortation in keeping with his current role as chief of corporate giving for JP Morgan. The disparity of income is a daunting issue, Daley warned. "We cannot allow that to fester in our country," he said of the dwindling middle class.