Worcester Business Journal

16 2022 Economic Forecast • Worcester Business Journal • www.wbjournal.com ECONOMIC FORECAST 2022 R E A L E S TAT E Russ Haims President Hampton Properties, LLC, in Worcester Haims won Worcester's real estate lottery this year, giving him the opportunity to have a heavy influence on the development of the Elm Park neighborhood. Aer its closure in the spring, Becker College le behind dozens of large historic buildings formerly hosting academic offices and dormitories. Haims acquired 27 of those properties for $10 million in October, which he said he plans to renovate into residential buildings. is is something of a speciality for the real estate developer, whose company has been restoring historic properties in Worcester since 1985. With such an asset added to his portfolio, Haims holds the power to shape one of Worcester's most central residential neighborhoods, as well as the insider knowledge to reliably forecast the city's real estate trends to come. David Moore Chair Worcester Ballpark Commission Two years ago, David Moore retired as Worcester's city solicitor, but he's taken on a new role overseeing one of Central Massachusetts' weightiest investments. Moore has been appointed chair of the Worcester Ballpark Commission, a committee which will monitor operations at the Polar Park baseball stadium. As head of this seven-member commission, Moore is responsible for administering the lease agreement with the Worcester Red Sox and overseeing the financial status of the ballpark, which, so far, is off to a rocky start. Leah Bradley Executive director Central Massachusetts Housing Alliance, in Worcester Beginning her role in the summer of 2020, Bradley has watched over the region's housing and rental markets during an extraordinarily tumultuous period. In the last two years, the federal eviction moratorium turned the real estate market on its head, while affordable housing became even more scarce through the coronavirus pandemic. In what some are calling a regional housing crisis, CMHA has been instrumental in designing rental assistance programs to support both property owners and tenants. Bradley has a birds-eye view of the different moving parts of the industry, and how each one connects: the impact of the pandemic, the influx of Boston-area investors, and the growing need for affordable housing. Three people in real estate to meet in 2022 Hot market Central Mass. real estate has been on a tear, which will continue well into 2022 BY KATHERINE HAMILTON WBJ Staff Writer T he future of office and retail space is still uncertain as remote work and e-com- merce maintain strong holds on the econ- omy, even in our new normal. One thing that seems certain: the housing market has perhaps never been hotter in Central Massachusetts. Massive apartment complexes with hundreds of units are planned throughout Worcester, and the sin- gle-family home sales and prices soared unfalteringly. Home sales and prices rise With the exceptions of some of the northern and western regions of Central Massachusetts, the housing market has been on fire this year and will continue growing, regardless of national trends. With Worcester at the heart, communities like Webster, Sturbridge, and Hudson have invested heavily in their downtowns and are now reaping the benefits with increased sales and prices for single-family homes. U.S. Census data, released this year, showed exponential population growth in most local communities. While this bodes well for homeowners looking to sell, it poses an af- fordable housing crisis, with rental vacancies virtually nonexistent in Worcester. is will have implications for the population demographics in the area, while drawing even more outside investors to construct housing projects. Adaptive reuse Outside investors from Greater Boston flocked to Central Massachusetts this year at seemingly record- breaking rates, looking to construct residential complexes. e region offers cheaper real estate than its easterly neighbors, but it contains a multitude of vacant mills and industrial buildings. With rising inflation and construction costs, these historic buildings will be prime locations for developers looking for alternatives to demolition and new construction. Adaptive reuse of vacant buildings tends to come with a few municipal incentives, which may help entice developers to include more affordable housing. A number of projects are already underway, while historic buildings like Worcester's Vendome and St. Ives apartments and a 120-year- old inn in Sterling recently sold for several million dollars each, promising potential redevelopment sites in 2022. Entertainment and experience favored over traditional retail Retail's comeback from the pandemic has been largely successful, but the sector is seeing a broader transformation begun before the word coronavirus even entered our vocabulary. Worcester's emblematic conversion of the former Greendale Mall into an Amazon facility demonstrates this changing face of retail. In place of the traditional indoor mall experience, large projects centered around entertainment and experience are probably on the horizon, mirroring Marlborough's Apex Center and Worcester Public Market. Polar Park's relative success this year could inspire similar projects, like the Sturbridge horse-racing center, which garnered some considerable support before the town voted to strike it down. Developers who do delve into the retail sector will likely avoid putting all their eggs in one basket – new retail developments will be mixed-use with a residential component. W W PHOTO | GRANT WELKER

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