SORRY PESSIMISTS

Hey LA and Houston, what's that you see jumping over you? It's Boston, now the third strongest US office market for ?11, according to Marcus & Milichap research director Hessam Nadji. Our 13.8% vacancy (third best) is headed down another 50 bps this year. Job growth will accelerate to 49,000 new slots, a 2% gain from '10. What counts for CRE is that 24,000 of those will be office using jobs, growth of 3.7% for Boston versus 2.7% for thenation. Hessam forecasts that asking rents will rise 1.0% andconstruction increase by 812k SF.
Meanwhile, the sale of the John Hancock Tower for $930M last year (after it sold at foreclosure for $650M) was a notable milestone for the city and US markets as a whole. Hessam says the sale by Normandy and Five Mile Capital to Boston Properties is an important affirmation that CRE is definitely in recovery. He tells us we're done with the correction, and it's time to get back into CRE.

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