Boston has surpassed Manhattan as the most liquid commercial property market for the past two quarters, according to Real Captial Analytics (RCA) data. RCA noted that in Boston, the component of unique, active buyers dropped only slightly during the past four quarters. Meanwhile, Manhattan has seen this input drop since the end of 2019 and has continued to do so at a more rapid pace recently.
Additionally, Boston’s investment volume score did not change much during the COVID-19 pandemic, according to RCA data. The city only ranked behind Dallas. Manhattan meanwhile saw its investment volume decrease by 4%.
“Manhattan’s share of institutional investor volume has declined steadily since the start of 2019, though most institutional investors never could buy assets in pricey Manhattan,” RCA analyst Shane Omundsen wrote. “Boston’s share has dipped marginally.”
Meanwhile, Manhattan’s share of global “marketmaker” volume and zone “marketmarker” volume is currently at its lowest point since liquidity scores started getting measured in 2008. Boston’s score hasn’t changed much during the past four quarters. On a relatively more positive note, RCA data shows that Manhattan has maintained a strong cross-border presence compared to other markets in terms of direct CRE acquisitions.
Boston holds steady despite COVID-19 pandemic
Boston has not only moved ahead of Manhattan as the most liquid CRE market, but it’s also seen considerable growth during the pandemic, GlobeSt.com reports. Newmark recently ranked Boston as one of its top five industrial markets. Boston led office sales volume last year. The city also leads the science office market—it accounted for 24% of all sales volume.
The city’s residential real estate market has held up well, also, despite the increase in the number of employees working from home. True new lease rent growth measured at 8.2%, which led all coastal markets. Boston was also the only coastal city to do better than the U.S. average on year-over-year change in retention in May.
Joe Dyton can be reached at firstname.lastname@example.org.