Bostonâ€™s commercial real estate prices are fast approaching peak levels last seen in December 2007, while the local market as a whole is head-and-shoulders above the rest when comes to rebounding from the depths of the most-recent recession.
Thatâ€™s according to a new report by Moodyâ€™s Investors Service, which tracked commercial real estate prices in major markets throughout the United States during the 12 months ended Sept. 30.
Moodyâ€™s said Boston was far and away the strongest commercial real estate market in the country during the period studied and was the closest to recovering the value lost during the downturn that followed the recession and 2008 financial crisis. The ratings firm said local CRE prices rose 10.4 percent in the 12-month span, tops among all major U.S. metros and well above the 8 percent growth logged by second-place New York. San Francisco ranked third in the Moodyâ€™s study, having recorded a 7.8 percent rise in prices over the past year.
Moodyâ€™s said its commercial property price index rose nationally by 1.4 percent during the period analyzed.
Boston also ranked as the best-performing CRE market in the country in terms of value recovered since the industry bottomed out in early 2010. According to the report, Bostonâ€™s commercial values are less than 1 percent below their market peak in December 2007. Washington, D.C., and New York were a distant second and third in reclaiming peak values, respectively falling short by 5.7 percent and 7.5 percent as of Sept. 30.
The local rebound appears to be prompting more property owners to test the market. Among them is The BlackStone Group, which according to multiple reports is actively marketing swaths of its real estate portfolio, including some 12 million squre feet of space in Greater Boston.
Source: Boston Business JournalÂ
Mario Pavli Vice PresidentÂ Boston Luxury ResidentialÂ