Worcester Business Journal

14 Worcester Business Journal | November 3, 2025 | wbjournal.com Home upgrades for the holidays. Learn More Scan the code Seamlessly access your Home Equity Line of Credit through St. Mary's Credit Union & experience the possibilities. Contact Maria or Karen today! www.stmaryscu.org (508) 490 8000 Maria Mendoza Mortgage Originator NMLS ID: 481138 (774) 245-8786 MMendoza@stmaryscu.org Habla español Karen Mitchell Mortgage Originator NMLS ID: 556375 (774) 424-8627 KMitchell@stmaryscu.org Real Estate 656 listed homes in Worcester County in January to 1,281 homes in September, according to data from Realtor.com. Listings are generally lower in the winter and reach their peak in the fall, but that's the most homes ton the market at a single time since June 2020. Sales are up 4% in Worcester County and 2.7% in Middlesex County through September, compared to that point in 2024, according to data from e War- ren Group, a Peabody-based real estate data firm. e increase in inventory and sales has yet to slow the seemingly end- less climb of prices in the region. e year-to-date median sales price sits at $490,000 for Worcester County and $800,000 for Middlesex County, increases of 4.7% and 6.7% respectively, compared to 3% statewide. Flex and logistics driving industrial Overall, there's been a slow down in the industrial space, according to the sector's annual sales volume in the Worcester metropolitan area. e annual sleeves volume of $372 million sits below the five-year average of $534 ting nixed by corporate or higher ups," he said. "It's wait and see right now." On a more positive note, Glickman said the industrial space has benefitted from investors looking to move away from office assets, and there's still high demand for industrial sites forlogistics operations. "E-commerce has had a huge effect on demand for warehouse distribution space, and reshoring has had a similar effect," he said. "So demand for large size spaces to accommodate these uses has been high, and therefore rental increases are happening as well." Buildings with plenty of power to handle advanced manufacturing or data centers can be a valuable asset, and Koogler said spaces less than 10,000 square feet with garage bays and flexible space have been a hot commodity. "It's like buying a starter home," he said of these smaller flex spaces. "ere's so many types of firms that could finish it. It could be a small company looking to get their first location, or even a larger company that needs overflow space." Investors looking for safe deals with a stable tenant who is unlikely to pack up and move have found some refuge in the industrial sector. In September, an investment team including a firm founded by David Rubenstein, a private equity investor and principal owner of the Baltimore Orioles, bought the headquarters of Commonwealth Fusion Systems for $74 million from a Boston-based investment firm. Working on the cutting edge of fu- sion energy technology, CFS has a long- term lease at the site, which was built out for the company, making a major move away from it unlikely. Showing the importance of lo- Continued from previous page Office vacancy rates Regional market Office vacancy rate Worcester County 17.8% Route 495 West 20.6% Boston suburbs 24.2% Boston inner suburbs 24.9% Route 128 Mass Pike 27.4% Note: Data is for second quarter 2025. Source: Colliers million, according to Costar. "Some people have called it a cool down," said Evan Koogler, a commercial real estate agent at Worcester-based Kelleher & Sadowsky Associates, said. "I don't know if I would quite put it in that category yet, but definitely a leveling off." e time it takes to close an industrial transaction increased in 2025, with deals occasionally getting axed in the 11th hour, said Bartholomew. "Deals that used to be pretty quick are now taking much, much longer to do if they're happening at all, and we're certainly seeing a lot more paper being pushed late in the game or the deal get- District 120, an 83-unit affordable housing building, had about 750 applicants apply to live there. Despite high demand for housing, elevated construction costs and financing challenges are impacting progress of other developments. PHOTO | EDD COTE

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