With the discount end of the office market shuddering, it’s time for Boston Mayor Michelle Wu and Gov. Charlie Baker to be as aggressive as possible in encouraging office-to-housing conversions downtown.
As remote and hybrid work entrench themselves, Boston’s class B office market looks like potentially fertile ground for conversion into thousands of new housing units.
Under its new CEO Peter Gottlieb, Hobbs Brook Real Estate is diversifying the geography and asset mix of its real estate portfolio from its traditional office and lab stomping grounds along Route 128 to different asset classes and regions of the country.
A lot more goes into renovating an older class B building into a class A than just adding a coffee bar or flat-screen TV in the lobby. A big part of the decision to renovate is the owner’s appetite for risk and how far they are willing to go to achieve a higher rate of return.
WeWork is pushing back its public debut as investor confidence appears to grow shaky in the office share company that had recently been valued at around $47 billion.