1400 Boylston Street | Star Market & Gulf | Fenway

[as02143]

Re that very declarative second sentence - there are many proposals for financing (just look through this forum). There are scores of 50+ unit residential projects currently under construction and getting financing everyday throughout Brookline, Allston/Brighton, Revere, Everett, Somerville, etc. In fact, there is a massive 350+ unit building currently going up around the corner from this (60 Kilmarnock) and I have no doubt it will be 95%+ leased once available. Hey, the tallest tower in Cambridge is currently rising now and it is residential. Meanwhile the LAB vacancy rate has now risen to 19% in Boston and climbing. I’m not in construction finance, but if I were, I wouldn’t touch lab construction with a ten foot pole in Boston right now.

And, yes, interest rates will be coming down by the end of 2024. The current market for financing is indeed slow, but the next 5 years of residential financing in Boston look far more promising compared to the oversaturated Boston lab market…….now if you were comparing residential to CASINOS, I would say differently.

I haven't seen many newly financed projects go into development since rates got jacked starting in Jan 2022. Most of the projects that have gone in seemed to have some sort of financing locked in before then. The 60 Kilmarnock seemed to have money flowing in late 2020 and early 2021. The tower in Cambridge was in Feb 2021.

Do we have any complex/large scale towers that have gone into construction since 2022? Most every thing large-scale for residential is in some kind of holding pattern since then. What remains are non-profit and smaller developments of under a hundred units for the most part.