Page 34 - BusinessWest January 20, 2025

“It’s harder to sell an empty building; people don’t take the same risks they did years ago.”
The measure clears the last of many roadblocks to a devel- opment projected to cost more than $3 billion at full buildout — making it one of the largest private-sector projects of any type in the state — and involve major tech players like Microsoft, Amazon, and Alphabet in their never-ending quest for more computing power.
“In a normal environment, this project would have moved much more rapidly. This has now gone on for five years, we
got hit by COVID ... it’s been arduous to say the least. At times, people’s patience has dwindled — it’s been like herding kittens,” said Panteleakis, citing hurdles ranging from needed tax incen- tives to environmental issues to a power-purchase agreement.
All systems appear go to finalize the purchase of 10 par- cels by the developer, Servistar Realties, he went on, adding that ground could be broken later this year on a project that could lead to other, similar developments in the years to come, especially in communities, like Westfield, served by municipal utilities.
Meanwhile, another project, one that has been much lon- ger in the development stages, took a possible step forward in 2024. Indeed, the Paramount Theater and adjoining Massa- soit Hotel in Springfield were acquired by Sacdev Real Estate Development of Suffield, Conn. at a highly anticipated auction last fall, said Low, adding that the acquisition could lead to progress at properties that have been vacant or underutilized for decades.
Overall, those we spoke with are looking at 2025 with opti- mism born from several factors, from confidence generated by the election results to slightly lower interest rates; from retiring Boomers selling their businesses (and real estate coming on the market) to what appears to be a surging retail sector.
Indeed, Ken Vincunas, president of Agawam-based Devel- opment Associates, recently returned from the International Council of Shopping Centers conference in New York, which was humming with activity among mall owners, prospective tenants, brokers, and more.
“They all say that market is on fire,” he told BusinessWest, adding quickly that the descriptive phrase doesn’t fully apply to this region, but he is optimistic, especially as he goes about try- ing to develop a retail center the company owns in East Granby, Conn., not far from Bradley International Airport.
However, while retail may be on fire — at least in other mar- kets — but other sectors of the market are still struggling, and for different reasons, said Vincunas, noting that the industrial market is being hurt by a lack of inventory, and the office mar- ket is still trying to fully recover from COVID and remote work.
Still, more frequent headlines about major corporations ordering their employees back to work for at least three or four days a week are generating momentum. Dill believes the office market may never return to what it was pre-pandemic, but the pendulum is clearly swinging back in that direction.
“After a couple of years on the Zoom and Teams screen, I think a lot of folks are pleased to be back in the office,” he said, noting that this sentiment is reflected in lease renewals and the amount of space leased.
At 1441 Main St., the TD Bank Building, which Colebrook manages and Dill co-owns, several government agencies renewed leases, and some took additional space, while Balise Motor Sales moved its corporate headquarters to the third floor of the building, all of which not only fills square footage, but brings more vibrancy to the downtown.
As for investor activity, Low said his firm has also seen an uptick in that realm, although he noted that, given some linger- ing uncertainty about the future of the office, many are being more cautious than in years past.
“It’s harder to sell an empty building; people don’t take the same risks they did years ago,” he noted, speaking for everyone in this business, adding that, if interest rates continue to creep down, that will certainly help.
That ‘if,’ and many others, continue to put the caution in cau- tious optimism — but to those with a stake in this sector, it sure beats pessimism. BW
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