Issue link: https://nebusinessmedia.uberflip.com/i/1540905
12 Worcester Business Journal | November 3, 2025 | wbjournal.com INSIGHTS: Real Estate Money on the sidelines Real estate is having a rough year, but premium properties are still catching the attention of investors BY ERIC CASEY WBJ Managing Editor U ncertainty seems to be the overarching theme of business in 2025, and commercial real estate has been no exception. e federal interest rate cut in Sep- tember and hopes of future cuts have a cause for some optimism, but looking at the market as a whole, a lot of inves- tors have been sitting on their wallets, waiting for more economic clarity. Deals across commercial real estate have been slower to progress as a result. Even with uncertainty, investment funds still need to be invested, meaning there has been an increase in large transactions in- volving key prop- erties seen as sta- ble and safe bets. Multi-family and certain industrial and retail proper- ties generally see high demand and low vacancy, with high construction and financing costs making existing assets all the more valuable. "ere's so much money on the sidelines looking to do something that makes sense. ose trophy assets are performing very well," said Jim Bartholomew, vice president of Way- land-based commercial brokerage firm R.W. Holmes. Seven transactions worth $100 mil- lion or more have occurred in Central Massachusetts so far in 2025, more than any year in the last decade, according to real estate data firm CoStar. Multi-family properties top the charts as the most valuable assets in the region, but with the demand for housing in Central Massachusetts clear, all but one of these $100-million sales have been large multi-family sites with low vacancy rates. e other was a newly-built logistics site in Douglas, showing the value of these types of locations in an age where online shopping has become ubiquitous. In terms of new construction, high- er-than-recent interest rates and the cost of construction are still impacting new developments across sectors, but partic- ularly in the multi-family space. "e biggest challenge over the last few years is getting these projects per- mitted," said Jim Glickman, prin- cipal and founder of Worcester real estate firm NAI Glickman Kovago & Jacobs. "Financ- ing has been tight- er, and the cost of construction has been exorbitant. Building materi- als have gone up significantly in price. Some banks have pulled back from the multi-family space. Interest rates are not high historically, but are comparatively to the way they were in recent years. All of these are contributing factors." Big housing deals rough August, 917 permits had been issued for single- and multi-family construction in the Worcester metropol- itan area, including 20 structures with five housing units or more, according to U.S. Census Bureau data. is compares to 1,344 permits, featuring 16 structures five units or more, at that point in 2024. Jim Bartholomew, vice president of R.W Holmes James Glickman, principal and found- er of NAI Glickman Kovago & Jacobs PHOTO | EDD COTE Despite market conditions, a handful of residential projects have managed to be fin- ished. Rich Mazzocchi (right) of Tremont Development Partners, along with Michael Jacobs of NAI Glickman Kovago & Jacobs, stand in front of Tremont's District 120 (rear left) in Worcester's Canal District and the ongoing construction for another multi-family project led by SMC Management.