Despite a decade of strong growth from 2011 to 2021, the Boston real estate market is showing signs of a significant slowdown. While the national market boomed due to low interest rates, Boston’s price growth has lagged far behind. The primary cause is a major shift in migration patterns driven by the work-from-home movement: more
In appraisals, the Sales Comparison Approach is fundamental. To compare properties, appraisers break down sale prices into units of comparison (e.g., price per square foot, per acre, or per room) that reflect how the market values that specific property type. They then analyze elements of comparison (like location, condition, and market demand) and apply adjustments.
In 2019, New England’s real estate market was defined by a high cost of living and strong job growth, particularly in the life sciences and tech sectors in Massachusetts and New Hampshire. While this boosted the economy, it also (along with rising interest rates) slowed single-family home sales and increased demand for rental properties. Key
Appraisers must often determine a property’s separate land value (e.g., for new construction, special-use properties, or “highest and best use” analysis), but vacant land sales are frequently unavailable in developed areas. To solve this, an experienced appraiser can analyze sales of improved properties (those with buildings), recognizing clues (like an oddly low price per square
Eminent domain (also called “condemnation”) is the government’s legal power, granted by the U.S. 5th Amendment, to take private property for public use, provided they pay “just compensation” (fair market value). Unlike 44 other states, Massachusetts law remains broad and allows the controversial practice of taking for private development (“urban renewal”). Appraisers play a critical,
Easements are rights held by others (like utility companies or for access) that limit a property’s usability, reduce its buildable area, and can even restrict future development (e.g., historic or conservation easements). Appraisers must identify these, as they directly impact property value. The most reliable valuation method is the “before and after” analysis, which calculates
The Cost Approach in real estate (which values a property at Land Cost + New Construction Cost – Depreciation) is a necessary tool, but not for every situation. It is most relevant and useful for new or proposed construction (where costs are known), special-use properties (like churches or schools) that don’t produce income or have
The Market Analysis section of an appraisal is crucial and often overlooked. While many readers skip to the final value, this section provides the essential data that supports the “Highest and Best Use” conclusion by analyzing financial feasibility and profit potential. It also offers vital insights into the property’s tenants or businesses (their history, market,
Implementing sustainable practices in commercial real estate boosts property value by both reducing operational costs and increasing tenant demand. You can cut expenses with energy-efficient upgrades like LED lighting and improved HVAC systems (e.g., high-MERV filters, better windows, insulation), which target the largest energy costs. Simultaneously, focusing on occupant well-being through features like thermal comfort,
