Worcester Business Journal

14 Worcester Business Journal | December 29, 2025 | wbjournal.com Opportunity among uncertainty in real estate BY ERIC CASEY WBJ Managing Editor F ed rates are down, but borrowing costs remain high, as is uncertainty over the impact of trade and immigration policies. While the country's economy sits at a crossroads, the local real estate industry will continue to benefit from Central Massachusetts' persistent growth. Housing reset? ere's some indicators that some degree of a housing market reset is underway. e region has begun to see an increase in inventory and a slowing of persistent price increases, and both of these should continue in 2026. On the rental side of things, each quarter in 2025 saw Worcester County's year-over-year asking rent growth slow, with 2026 expected to bring more modest increases than in previous years. But even with an increase in new construction, rents are still climbing faster than the national and state averages. Employers will have to worry about the impacts of housing costs on the local talent pool, while investors will seek out existing multifamily properties for purchase. Office conversions continue With the ongoing redevelopment of the former Fallon Health headquarters in Downtown Worcester into apartments and plans to turn a former EMC site in Southborough into a Costco, expect an acceleration of office conversion projects in 2026. is is particularly true for MetroWest, where vacant offices are abundant. Data and power Advanced manufacturing and AI are resulting in high premiums for properties containing the necessary infrastructure to meet demand, while environmental codes are increasingly mandating all-electric utilities in residential and other types of buildings. Expect a lot of talk about energy demand in 2026, and an escalation of debates over how to meet shorter- term needs while hitting longer-term climate goals. New $84M youth athletic academy at former Bose campus in Stow to be site of USA Fencing center A former Bose Corp. campus in Stow is set to be the site of an $83.8-million private boarding academy focused on developing students into elite athletes, with USA Fencing partnering with the school to create the country's first ded- icated fencing performance center and national academy. Founded by brothers Peter and Chris Masters, co-owners of the Marlbor- ough-based Boston Junior Bruins ama- teur hockey program, Masters Academy International will be an 82-acre campus featuring athletic facilities, classrooms, and dorms, according to documents filed with the Town of Stow. Located at 688 Great Road, Masters Academy International purchased the site for $9.82 million on July 28, according to Middlesex South Registry of Deeds records. e site was purchased from 123 Outlier LLC, a Worces- ter-based entity managed by art collector and entrepreneur Clifford Schorer. Schorer acquired the site from Bose in May 2024 for $2.3 million. Aer first occupying the campus in 2003, Bose moved the site's 1,500 employees to its headquarters in Framingham in 2021. e first academy of its kind in New England, Masters Academy Internation- al expects to serve more than 500 stu- dents ranging from grades 6-12 across more than 10 sports. e academy expects to open in the fall of 2026. Chip Norton, owner of Mercantile Center, files for bankruptcy amid lawsuits, $70M in debt Charles "Chip" Norton, one of the most prominent players in the Central Massachusetts property development world, has filed for Chapter 7 Bankrupt- cy as five lawsuits have accused him and his businesses of unpaid debts, amid an unprecedented crisis for his real estate empire. Norton, the owner of Worcester's Mercantile Center and the largest commercial property owner in Central Massachusetts, disclosed a total of $1.69 million in debt in filings with U.S. Bank- ruptcy Court for the District of Mas- sachusetts, but creditors have claimed he has nearly $70 million in debt as the result of personal guarantees related to real estate financing, where his personal assets were offered as collateral. Norton, his Wellesley-based firm Franklin Realty Advisors, and other associated entities are facing five lawsuits filed across three states since the begin- ning of May, all involving unpaid debt relating to Central Massachusetts real estate projects and associated entities. Norton has apparently stepped away from FRA since his financial dealings imploded this spring. Filings related to the lawsuits and bankruptcy show Norton has made a number of personal guaranties involving business loans for commercial real estate projects. ese properties include Mercantile Center, the mixed-use site featuring two office towers in Downtown Worcester, the Worcester Business Center at 67 Millbrook St., the Wellsworth Hotel and conference center in Southbridge, and Top real estate news from 2025 W PHOTO | WBJ File REAL ESTATE Fallon Health's former corporate offices are being converted into residences. Chip Norton

• Cover