Health Care To Drive Commercial Real Estate Rebound?
I’m betting 2011 will be a rebound year for commercial real estate. That said, which sector will lead the way - high tech, financial services or biotech.
Who knows, maybe none of the above.
In fact, one bright spot may turn out to be the national health care reform bill passed earlier this year. It is already leading to predictions that it will spark a rise in demand for space by the health sector, which already plays a major role in the Boston market as it is.
Sure, heavyweight Boston hospitals and research institutions are at least starting to dust off expansion plans in the core Longwood Medical district.
But the health care sector is also a major player in some traditional suburban office markets as well. Health sector businesses occupy 10 percent of the office space along the key, Route 128 West corridor from Lexington to Needham, Richards Barry Joyce and Partners reports.
That makes health care companies and institutions the third largest occupier of space along this section of 128.