Real Estate Economic Forecast
PHOTO/Matt VOLPINI
Chip Norton, president of Franklin Realty Advisors, said his office tower renovation could lead to an increase in commercial rents and property values in Worcester.
Worcester has been “up and coming” for decades. For years, however, the pieces of the puzzle seemed to be scattered all around the room. In the last year, the city has seen tremendous leaps forward in development along with bursts of activity that will come to fruition on the coming years, spurring on future development. If 2015 was a big year for Worcester real estate, which it was all around, then 2016 seems set to be the year the groundwork truly pays off and starts to snowball into even greater activity.
Worcester development primed to explode
Blink and you might miss a development announcement in Worcester.
That is the kind of year that 2015 was for the Heart of the Commonwealth. However, with many of these projects set to come online in the next year or two, they are set to spur a second round of development.
The groundwork has been set and 2016 will see the early adopters give way to continued investments growing out of City Square.
MetroWest will see influx of big companies
The MetroWest real estate market has been hot and will be hot in 2016. With prices reaching just this side of true insanity, companies are increasingly appreciating not only the value proposition of the 495 corridor but the Goldilocks nature of the area. With locations that offer a huge amount of space and buildings ready for build out but close enough to Boston and Worcester for collaborations and meetings, MetroWest will continue to be the right balance for many companies in 2016.
Boosted values for Worcester
Worcester has always been a bargain, but now developers are pushing the envelope to create a product that can warrant higher rents.
This will be a slow growth process that involves both investment in individual buildings as well as an overall increase in the image and amenities of the city. With developers tackling the buildings, public transportation increasingly becoming a viable option into Boston and the city set to continue updating the infrastructure, through projects like the $8-million Main Street renovation, increased rents are likely to follow.
Top real estate stories of 2015
High-end Worcester hotel to add 168 rooms downtown
Sales of triple deckers surge after recession
City agrees to sell former courthouse for $1.2M for housing, retail
Read more of our Economic Forecast predictions
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