Boston Tour Highlights

Research evidence excerpt

Boston Tour Highlights

Last week, we spent two days in Boston meeting with a range of companies (public and private) across a number of

asset classes including apartments, shopping centers, office and life science. The Boston debate for apartment REITs

is increasingly about whether resilient long-term demand can offset near-term softness in one of the market’s key

engines of growth, which is life sciences.

The employment chart below indicates that total non-farm employment is slightly lower than roughly a year ago in

aggregate although we recognize the seasonal impact over the winter months. That said, the unemployment rate

appears steady in the low 4% range, but to get more constructive on the apartment sector, we need to see more

acceleration in non-farm payrolls or a falling unemployment rate. On supply, the apartment permit data remains

volatile but appears below prior peaks, supporting the “supply relief” thesis into 2026–27; however, the near-term

setup is not uniformly landlord-friendly, as Colliers notes vacancy is rising and fundamentals are shifting somewhat

toward renters while the shrinking construction pipeline should help lease-up conditions.

The larger overhang remains life-science/lab demand: Boston-Cambridge lab vacancy is still elevated, with CBRE

reporting Q1 2026 availability at 32.7% and vacancy near 27.9%, while Savills reported overall vacancy of 26.8%,

suggesting tenant retrenchment and sublease pressure remain risks to high-income job growth. Corporate migration

is a modest positive, highlighted by Hasbro’s planned HQ move to Boston and roughly 700 jobs, but this is not yet

enough to fully offset investor concerns around biotech funding, lab absorption, and a slower white-collar hiring

backdrop.