there is also a very strong market for the rehabilitation of distressed properties. whether office, industrial, or residential, many areas (governments) are offering incentives through taxes or site improvments for developers willing to invest in depressed properties. i am looking at D or lower class office and industrial properties to rehab in Boston suburbs. with an architecturally sensitive facade, and primarily equity financing, i can imagine an ROI 100 to 150 basis points higher than the average cap rate.
there may also be a serious opportunity for developers to rehab old buildings for use as childcare centers in the suburbs. many states (including MA) are cracking down on inadequate early learning senters for children. child care has become heavily regulated in recent years and by creating a space for operators to move into without many modifications, there could be some consistent returns.
