Boston’s Rebound May Hit a Policy Wall, Developers Warn

Boston’s institutional investors are starting to dust off their checkbooks, meaning commercial real estate in the city may soon see a comeback. But some of the city’s biggest players are sounding an alarm: the capital may not be ready to catch the wave.

At an event last week, executives from Synergy, Taurus Investment Holdings and Related Companies said they’re encouraged by early signs of renewed interest in Greater Boston, even as they worry that local and state policies could choke off momentum just as capital returns, according to Bisnow.

Synergy CEO David Greaney said the issue starts with demand and leadership. Boston has the fundamentals to compete, he said, but only if public officials and the real estate industry get aligned quickly.

“We do have a lot to offer,” Greaney said, warning that the city risks “falling behind” if it doesn’t adjust course.

Synergy was among the most active buyers in Boston’s office market during the last downturn, scooping up Class B buildings in the central business district over the past two years. That contrarian bet reflected a broader view among panelists that the market is closer to a reset than a collapse.

Taurus CEO Peter Merrigan said last year brought green shoots in investment interest locally and nationally and a bigger pickup is expected this year.

“This will be a big reset year, a big transaction year,” he said of 2026.

What could derail that optimism, executives argued, is policy. Rent control, sustainability mandates and affordability requirements were cited as compounding headwinds, particularly for multifamily development. A proposed statewide ballot measure would cap annual rent increases at 5 percent, a move Merrigan called “pure insanity.”

Merrigan said several major developers warned Gov. Maura Healey at a recent dinner that they would exit the Massachusetts market if rent control passes in November. Healey opposes the measure.

Related Companies president Bruce Beal Jr. echoed the concern, saying Boston mayor Michelle Wu’s initiatives may be well-intentioned but economically flawed.

“A lot of the folks that are engaged in these conversations are not doing the math,” Beal said.

Related Beal is active in affordable housing, including its recent acquisition of 347 units at Fairlawn Estates in Mattapan.

Despite geopolitical jitters, Merrigan said the firm remains bullish on the U.S. — and, potentially, Boston — if the city doesn’t regulate itself out of the recovery.— Holden Walter-Warner