CRE Panel: Bay State Owners Could Be "Cautiously" Optimistic

The Massachusetts economy is continuing its slow and steady march to recovery, despite continued unemployment and weak economic growth. A Boston-based panel of real estate executives and analysts agreed that the Bay State is moving into a rebound phase, and that commercial property owners could be “cautiously optimistic” about the future of the market. The panel, which spoke at a breakfast at Boston’s Westin Copley Hotel that was sponsored by Sovereign Bank and the Greater Boston Chamber of Commerce, noted that both office vacancy rates and rents have been stable, according to data from research firm Reis, which tracks the real estate market.

The Massachusetts economy had been recovering much more quickly in the first half of 2010, but then some of the gains in the private sector were offset by cuts in government spending, preventing a bigger drop in unemployment and stronger gains in the overall economy. “We are looking at a slight improvement, rather than a more rapid improvement,” said panel member Barry Bluestone, dean of the School of Public Policy and Urban Affairs at nearby Northeastern University.

Economic data from unemployment reports and consumer confidence surveys has indicated that the U.S. economy is slowly recovering, but remains significantly worse than it was before the recession began. However, business appears to be stronger in Massachusetts, compared to the rest of the country, according to panel member Peter Smyth, chief executive of Greater Media, which owns radio stations in Boston and several other markets. “We are starting to see confidence come back,” he said.