At Least In Commercial Real Estate, The Buyers Are Back
Boston Properties’ decision to go for it on the Hancock tower looks increasingly well timed.
In fact, the $930 million deal is just one more sign in a major rebound in investor sentiment in the commercial real estate market being tracked by Jones Lang LaSalle.
A survey of major office market investors around the country finds that 85 percent plan to ramp up their activity over the next year, the firm reports. Of these, a third expect to raise the amount of cash they are allocating to new deals by as much as 30 percent.
Only 15 percent are looking to scale back.
That’s up from significantly from just this past spring, when a somewhat lower 74 percent said they were looking to pump more money into tower and building acquisitions.
So what are they looking to buy?
Well apartment towers top the list, bumping off hotels, which were the favorite last spring. (Maybe high-profile bankruptcies like the W Boston may have a little to do with this.)
Industrial properties are now the second choice, followed by hotels, offices and lastly, retail.