Housing has its worst monthly price drop in 20 years

The Massachusetts housing market experienced its worst monthly price drop in more than 20 years as concerns over the slumping US economy and the stock market worried consumers, the Warren Group reported today.

"The November median home price slumped 16.7 percent to $275,000 from $330,000 during the same month in 2007," said the Warren Group, a Boston firm that tracks local real estate activity and that publishes Banker & Tradesman. "November’s percentage decline exceeds the monthly price drops in September and October, when median home prices were down 15.3 percent and 13.9 percent, respectively."

In a press release, the Warren Group also noted that the number of single-family home sales in Massachusetts fell 18.4 percent in November on a year-to-year basis, after climbing for two consecutive months.

Young immigrant population booms on the Cape

There was almost zero growth in the region's native-born working-age population — defined as 16 years or older — between 2000 and 2006. The number of foreign-born members of the working-ge group, meanwhile, jumped by 54 percent, or 6,668 people, according to the Northeastern analysis of census data.

Rodriguez works most days at the cell phone store, often going directly to his job as a night auditor at the Comfort Inn. He also squeezes in work on the real estate business and time with his 1-year-old son.

All told he works at least 80 hours each week — twice the normal work week — and earns between $45,000 and $50,000, he said.

"You find a lot of entry-level jobs here that you don't find in other areas."

But immigrants do more than just work. They also spend money.

Alena Reardon, 30, of South Yarmouth came to the Cape from Belarus in 1999. Work and spending money go hand in hand, said Reardon, who is a marketing assistant who works for the Cape Cod Mall.

Yale says its endowment lost 25 percent since June

BOSTON, Dec 16 (Reuters) - Yale University's endowment has lost 25 percent, or $5.5 billion, in four months, becoming the latest wealthy university to say how much of a bite the current financial crisis has taken out of its finances.

Yale President Richard Levin wrote to the school's faculty and staff on Tuesday, warning them the decline would force budget cuts in coming academic years.

"Our best estimate of the endowment's value today is $17 billion, a decline of 25 percent since June 30, 2008," Levin wrote, adding: "This is the value we are using for purposes of budget planning."

He said the school would need to reduce all wages and non- salary expenses such as travel and consultants' fees by 5 percent for 2009-2010, and by another 5 percent the following year.

Lower Property Taxes For Boston Residents?

For the second year in a row, Boston residents could be paying less than the previous year for property tax if a plan is approved by the state's Department of Revenue, Mayor Tom Menino said Thursday.

If the plan is certified, the fiscal year 2009 assessments will result in a residential property tax reduction of $187 in the average single family home's tax bill, down from $2,949 last year to $2,762 this year for taxpayers receiving the residential exemption.

The average residential tax bill in Boston will be 33 percent below last year’s statewide average of $4,110. The residential tax rate is expected to be $10.63 per $1,000 of valuation, down from $10.97 last year.

Hancock Tower's owner finds itself in a crunch as rents fail to cover debt

It was an eye-popping deal struck at the top of the real estate market: Broadway Partners LLC bought the Hancock Tower in late 2006 for $1.3 billion, betting the iconic skyscraper would command ever-rising rents as companies clamored for office space.

Now, that purchase has boomeranged on the New York real estate investment firm: Two of the Hancock's largest tenants have left, rents for top-shelf office space are falling, and Broadway Partners next month must repay of hundreds of millions in debt it has so far been unable to refinance.

Broadway Partners must now either get an extension on its Hancock loans or raise fresh capital in an environment where investors are running away from high-flying commercial property deals, said Boston real estate executives familiar with the matter.

A spokesman for Broadway Partners declined to comment. But others in the real estate industry said Broadway's predicament is but one example of the challenges facing recent buyers who borrowed heavily to purchase commercial property.

BOMA Boston presents the 2008 Building of the Year

Boston, MA, The Building Owners and Managers Association of Boston (a division of the Greater Boston Real Estate Board) - which represents over 100 million s/f of commercial real estate space in downtown and suburban Boston, hosted its annual BOMA Boston TOBY and Industry Awards last month at the Westin Boston Waterfront Hotel.

The Office Building of the Year (TOBY) Awards recognize excellence in building operation and property management. Ten properties took home TOBY Awards. Seven individuals and companies were honored for their commitment to BOMA Boston and to the real estate industry. The night culminated with the BOMA Boston Industry Leadership Award, recognizing James Karman, vice chairman of Jones Lang LaSalle Americas. Over 400 people were on hand to celebrate the accomplishments.

"Real estate is one of Boston's biggest industries, and last week BOMA Boston recognized the outstanding individuals and companies who contribute to the success of commercial real estate," said BOMA Boston executive director Jeanne Wolf.

Biogen Idec to move its main offices to Weston

Biogen Idec Inc., one of Massachusetts' largest biotech companies, will move its headquarters from Cambridge to an office building being built in Weston adjacent to routes 20 and 128.

The 350,000-square-foot building, which the company plans to move into in 2010, marks the largest lease deal in Boston's suburbs this year, according to several real estate brokers. The construction project will be managed by Boston Properties Inc.

Biogen Idec said it will save money by moving management and administrative functions to the suburbs. The company is likely to pay an annual lease rate of close to $45 a square foot, according to several brokers, while space in Cambridge can cost more than $60 a square foot.