Co-Working Space Expansion Stalled in Boston - Is It for Good?

In the second half of 2019, very few new co-working spaces opened in Boston and the surrounding areas. This halt in the expansion of new co-working spaces was in lockstep with WeWork’s botched public offering after it lost $1.25 billion in three months. Despite many of the well-known co-working companies (think WeWork, Industrious, Workbar) saying Boston is a key market for their business, there are still only one or two plans to open new spaces in the coming months, according to a recent Boston Globe article. What do you think will happen with co-working spaces in the future?

Boston's Boom Sparks Rise in Property Values

Ahead of the new year, the Boston Municipal Research Bureau is releasing a five-part series on Boston’s economic boom since 2013. The first report property values have hit a high of $164.5 billion in 2019, which is an increase of 78.4% since 2013. The city’s population has grown about 6% which is about 40,000 people. Rising property values, new construction of all types, the influx of people, and a strong business sector are all part of Boston’s boom. Click here to read more about which neighborhoods have seen the biggest growth in property values.

Cap Rates on the Rise

For all of my fellow real estate investors out there, you have probably noticed the same frustrating trend that I have with properties being marketed over the last few years. Every day, properties have been offered to the market with incredibly low cap rates and no potential for upside except unpredictable, hypothetical appreciation. For the majority of these properties it is impossible to make the numbers work for anyone other than large institutional investors or UHNWI looking to park money. In March of this year, CBRE and other real estate advisory firms were predicting that in 2018 we would begin to see a rise in Cap Rates.

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