Even with the job market remaining somewhat on the lackluster side, certain real estate markets continue to sputter along with some markets showing signs of gaining strength in the Boston area.
Overall real estate investment activity remained fairly robust as reflected in the recent $2 Million sale of the Flex One Bldg. in the New Bedford Business Park and the $1.7 Million sale of the Candleworks Office Bldg. in downtown New Bedford.
Multifamily properties have been leading the real estate recovery, with year over year rental growth of about 4%-5% in 2012, according to CBRE Econometric Advisors. Rent growth for multifamily properties is strong in virtually all markets, with half already exceeding prior peak rents.
Office properties placed second nationwide, with office vacancies declining from 16.5% in the forth quarter of 2010, to 16% in the forth quarter of 2011. Rents in the office sector increased by 3 percent during 2011. The Industrial sector has continued to show improvement with the Retail sector showing about the same vacancy rates.
Depending on investors’ risk tolerance, investment experts say there are some good opportunities to be had for sure. Careful selection and attention to solid fundamentals is the rule of the day in this protracted real estate recovery.