viewpoint q2 13
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7/27/2019 Viewpoint Q2 13
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GREATER BOSTONMARKET VIEWPOINTND QUARTER
Accelerating success.
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7/27/2019 Viewpoint Q2 13
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Midway through , the vacancy rate in the Boston of ce
market is .%, compared to .% at the beginning o the year
and .% twelve months ago. Net occupancy increased by
, square eet during the rst two quarters o the year,
marking the ninth consecutive quarter o positive absorption.While the market remains approximately , square eet
shy o its peak occupancy recorded in the third quarter , it
is on pace to return to this level by year-end and to exceed this
in .
Selected statistics at the close o the quarter include:
Submarket/Class Vacancy RateAbsorption (s)
Q YTD
Financial District Class A 15.3% (130) (203)
Financial District Class B 12.4% 3 355
Back Bay Class A 8.9% 70 (45)
Back Bay Class B 13.8% 68 100
Seaport Class A 10.0% 2 29
Seaport Class B 11.3% (44) 54
SUPPLY AND DEMAND
Supply totals over million square eet, with over percent
o the inventory located in the Financial District, Back Bay and
Seaport submarkets. Nearly hal this inventory is in the Class
A tower market that includes buildings and totals million
square eet.
At the end o the second quarter, there were over tenants
in the market seeking an aggregate o nearly million square
eet o of ce space. Although the median requirement is
, square eet, some o the larger requirements include:
Tenant SF Industry
Goodwin Procter, LLP (c) 350,000 Legal
PriceWaterhouse Coopers (c) 300,000 Business Services
Analysis Group 150,000 Business Services
Monster.com 150,000 Online Recruitment Services
Choate Hall & Stewart 150,000 Legal
Sonos 100,000 Technology
Natixis 125,000 Investment Management
Shawmut Construction 75,000 Construction
(c) committed
VELOCITY
Velocity (signed lease activity) totaled approximately ,
square eet during the quarter, representing approximately
transactions.
Arnold Worldwides ,-square-oot lease to relocate to
the Burnham Building in Downtown Crossing represented th
largest transaction executed during the second quarter.
Selected second quarter transactions include:
Tenant Address SF
Arnold Worldwide 10 Summer Street 125,000
Ernst & Young 200 Clarendon Street 100,000
Smart Traveler 226 Causeway Street 70,000
Oliver Wyman 200 Clarendon Street 56,000Latham & Watkins 200 Clarendon Street 50,000
MetLie One Financial Center 50,000
Maximus 55 Summer Street 47,000
Eastern Bank 265 Franklin Street 45,000
The Seaport comprises roughly % o Bostons of ce suppl
but in the past two years has captured a disproportionate
share o leasing activity with two to three times its market
share. As a result, tenants are now nding ewer options in
this submarket and lease activity has been more in line
with the respective size o the submarkets, with the FinanciaDistrict garnering % o year-to-date lease activity and
Seaport .%.
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YTD
SF
(Thousands)
Financial District Back Bay Seaport Oth
Transaction Velocity
MARKET VIEWPOINT | Q
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Boston Overview
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ABSORPTION AND VACANCY
The vacancy rate declined rom .% to .% during the
quarter with , square eet o positive absorption.
Positive absorption in the Back Bay was due in part to onlineretailer Wayairs ,-square-oot lease at Copley Place.
The company will be relocating in June rom ,
square eet at Huntington Avenue.
Net absorption in the Financial District was negative ,
square eet due in part to contractions by MetLie, Bank o
America and Mass Housing. This represents the rst quarter
o negative absorption in the Financial District since the rst
quarter . Given the strength o current market interest in
the Financial District, a rebound is anticipated during the
second hal o the year.
Over , square eet o positive absorption in the North
Station submarket pushed the vacancy in this submarket to
.%. This was attributed to transactions executed at
Causeway Street, where Smart Traveler leased , square
eet and Stantec took , square eet.
Net absorption o to . million square eet per year through
should lower the vacancy rate to approximately %.
RENTAL RATES
Rental rates are rising across the market, with the most
notable increase in the Seaport where asking rents or
buildings that were in the high-s twelve months ago are
now rmly in the mid-s per square oot. Selected spaces
in the Back Bay have appreciated as well, with Class A lease
comparables in the s to s per square oot.
The spread between asking rents in various segments o t
market is depicted in the ollowing table.
Space Type Rental Range/SF
Class A High Rise $55 - $75Class A Mid Rise $45 - $55
Class A Low Rise $40 - $45
Class B $25 - $45
DEVELOPMENT
In addition to build-to-suit construction underway or Vertex
(. million SF), Liberty Mutual (, SF), and State Stre
Bank (, SF), the development pipeline is active.
Goodwin Procters commitment to what will be the ourth
of ce building at Fan Pier will add another , SF to
inventory.
Construction has begun on the Burnham Building, Millennium
.-million-square oot mixed-use development at Downtown
Crossing which is expected to include , square eet o
of ce space o which , square eet is leased to Arnol
Worldwide, expected to take occupancy by mid-.
Speculative construction has begun at Boylston Street,
Samuels & Associates mixed-use project in the Fenway
submarket which will include , SF o of ce space.
Both Skanska and New England Development are planning
new of ce buildings at Seaport Square and Pier ,
respectively, which will combine to add approximately ,
square eet to the Seaport of ce supply.
TRENDS
As the market edges closer to equilibrium, net absorption is
expected to be strong over the next ew years.
Absorption in the Seaport and Financial Districts will be relia
in part on out-o-market tenants and urther reduction in the
low-rise segment o the Financial District.
"Less is more as tenants ocus on improved ef ciency and
reduced occupancy costs.
While opportunities or tenants seeking value are still plentiu
rental rates are rising, with the largest percentage change in
the Seaport and North Station submarkets.
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%
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%
%
%
SF
(Thousands)
Total Boston Vacancy RateTotal Boston Absorption
Projected Vacancy & Absorption
MARKET VIEWPOINT | Q
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Q
Q
Q
Q
Q
Q
Q
Q
Q
SF
(Thousands)
VacancyAbsorption
%
%%
%
%
.%
.%
.%
.%
.% .%.%
15.6%5.6%
9.9%.9%
Historical Vacancy & AbsorptionCambridge Oice
The vacancy rate in the Cambridge of ce and lab market
increased rom .% to .% during the second quarter, as
negative absorption in the lab market and a statistically at of ce
market contributed to the uptick. The .% vacancy rate still
compares avorably with the .% at the beginning o the yearas well as the .% rate recorded at this time last year.
The East Cambridge/Kendall Square of ce market remains
extremely tight, with an .% vacancy rate and nearly ,
square eet o positive absorption midway through . This
submarket continues to be driven by large technology and lie
science companies who have ocked to Kendall Square to
compete or talent.
Ater a strong rst quarter, the Cambridge lab market slowed
during the second quarter as several blocks o sublease space
became available. These subleases, coupled with the availabilityo two oors at Sidney Street currently occupied by AVEO
Pharmaceuticals and totaling , square eet led to
approximately , square eet o negative absorption in the
quarter.
Key statistics at the end o the second quarter include:
Market/SubmarketsSupply SF
(s)Vacancy
Rate
Absorption (s)
Q YTD
Total Cambridge* 19,856 9.8% (169) 139
Of ce 10,308 8.8% 60 203Lab 8,671 11.1% (166) (7)
*Includes R&D space
OFFICE MARKET
The .-million-square-oot Cambridge of ce market recorde
, square eet o positive absorption during the quarter
causing the vacancy rate to decline rom .% to .%. This
number remains deceptively high or companies looking to ope
or expand an of ce in the core Kendall Square submarket whicended the quarter with a vacancy rate o %. Given the pendi
completion o build-to-suit of ce buildings or Biogen Idec at
Binney Street and Cambridge Center, the Cambridge
of ce market is on pace to record at least , square ee
o absorption or the year.Some notable second quarter
transactions included HubSpots renewal and expansion into
, square eet at First Street. HubSpot, a technology
company that creates marketing sotware, is more than doubli
in size rom its existing ,-square-oot ootprint. This lea
represents the largest of ce lease signed in Cambridge in the
rst hal o .
QuickBase, a cloud-based collaboration platorm division o
nancial sotware giant Intuit, signed a lease or , squar
eet at CambridgePark Drive in Cambridges Alewie
submarket. QuickBase will be relocating its headquarters rom
Waltham and doubling in size.
NGIN, a start-up incubator signed a lease or , square e
at BioMed Realtys Broadway. NGIN Workplace is the late
in a growing shared of ce space market, competing against th
likes o Cambridge Innovation Center, Workbar, Dogpatch Labs
and Geek Of ces in a growing niche market that serves small
users and startups seeking a exible alternative to traditional
of ce space. Incubator operators oering these co-working
alternatives oer temporary or longer-term options rom open
shared workspace to private of ces in spaces ranging rom
, to , square eet.
One noteworthy pending lease is Akamais commitment to
, square eet o of ce space at One Kendall Square
Building . The Beal Companies has agreed to demolish
, square eet o existing laboratory space in order to
accommodate Akamais expansion requirement. Thiscommitment is in addition to the , square eet o
expansion space that Akamai leased at Hampshire in the our
quarter .
Demand remains strong in East Cambridge with
requirements totaling over , square eet, including
Facebook (, square eet) and Twitter (, square eet
both looking to open new of ces in Kendall Square.
The largest of ce leases executed during the quarter are listed
MARKET VIEWPOINT | Q
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Cambridge Overview
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East Cambridge Office Availabilities
below:
Tenant Address SF
HubSpot (e) 25 First Street 117,000
QuickBase (e) (r) 150 Cambridge Park Drive 61,000
MIT- Sloan School 1 Charles Park 36,000
(e) expansion (r) relocation
Rental rate growth has been most evident in East Cambridge,
with a comparison o current asking rents to and month
ago as ollows:
Direct Asking Rents PSF
Space Type - Location Q2 2011 Q2 2012 Q2 201
Class A East Cambridge $35 - $50 $45 - $65 $48 - $6
Class B East Cambridge $32 - $37 $38 - $47 $42 - $4
Class A Alewie $24 - $28 $28 - $35 $30- $4
MARKET VIEWPOINT | Q
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LAB MARKET
TThe . million-square-oot lab market closed the quarter with
an .% vacancy rate, which compares avorably to the .%
vacancy rate twelve months ago and is on par with the .% at
the beginning o . Negative absorption during the quarter
was attributed to our subleases totaling , square eet
coming back to the market. The largest o these our blocks is
, square eet o shell space at East Kendall Street
that AVEO Pharmaceuticals place on the market ater ailing to
receive FDA approval or it kidney cancer drug tivozanib. On a
positive note, two commitments or subleases totaling
approximately , square eet are already pending.
The largest laboratory lease o the rst hal was signed during
the second quarter by Mil lennium Pharmaceuticals at Forest
Citys Massachusetts Avenue. The ,-square-oot
build-to-suit will allow Millennium to expand its ootprint within
University Park at MIT to nearly , square eet.
Construction is expected to begin in early .
Bluebird bio, a clinical staged biotech company ocused on gene
therapy treatment or orphan diseases, signed a lease or ,
square eet at Second Street. Bluebird, initially unded byThird Rock Ventures, also completed a successul IPO during the
second quarter. The lease will bring Second Street,
speculatively developed by Skanska in , to % occupancy.
Sarepta Therapeutics signed a lease or , square eet o
lab and of ce space at First Street. Sarepta, a RNA-based
therapeutics company will move its headquarters rom Corvallis,
Oregon to Kendall Square.
The largest lab leases executed during the quarter include:
Tenant Address SF
Millennium Pharmaceuticals 300 Massachusetts Avenue 229,000
Sarepta Therapeutics 215 First Street 46,000
bluebird bio 150 Second Street 43,000
There has been a marked decrease in the availability o Class A
shell space over the past year. Compared to the second quart
when % o the available space was shell space, % o
the currently available lab space is in shell condition. There w
be an increase in the availability o Class A existing lab in the
next year when Vertex vacates approximately , square
eet with its pending move to the Seaport in early and
several other Class A Existing Lab options coming back to the
market. Approximately . million square eet o existing labspace will become available in . The chart below depicts
the breakdown o available lab space by type and quality at the
end o the second quarter.
Space TypeSF
Available% of Available
Space#
Buildin
Class A Biotech-Ready Shell 340,522 35% 4
Class A Existing Lab 188,056 20% 7
Class B Existing Lab 355,713 37% 18
Obsolete Lab 73,929 8% 2
Totals 958,220 100% 31
Heading into the second hal, demand has slowed to
requirements totaling approximately , square eet.
TRENDS
The Cambridge of ce market is on track to have a historic hi
year in terms o absorption. Pending commitments rom
Akamai, Twitter, Alexion and Facebook as well as Biogen
Idecs upcoming relocation rom Weston to Cambridge virtua
guarantees a banner second hal.
The spike in of ce rents has pushed some lab landlords to
consider converting lab space into of ce.
The vacancy rate in the lab market will spike in with
several large blocks o space set to hit the market.
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YTDQ
SF
(Thousands)
VacancyAbsorption
%
%
%
%
%
%
.%
.%
.%
.%
.%10.8%0.8%
Historical Vacancy & AbsorptionCambridge Lab
MARKET VIEWPOINT | Q
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Cambridge Overview
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Fundamentals are trending in the right direction, but the suburban Boston of ce and R&D markets remain dichotomized. With our o t
past ve quarters posting positive absorption, vacancies inched down to .% in the second quarter. Tenant demand and leasi
velocity remains concentrated in the areas major of ce nodes Route Mass Pike and Northwest and Route West. Some o t
smaller suburban submarkets, like Route South, have been gaining ground in recent months as well. Widespread improvemen
have yet to permeate the Route North and Route South submarkets. Going orward, market conditions should continue improve, with well positioned, amenity-rich assets and locations garnering the lions share o activity.
Aggregate statistics or the of ce and R&D market are provided below:
Submarket/Class Supply SF (s) Vacancy RateAbsorption (s)
Q YTD
Suburban Boston 132,728 19.7% 472 591
Inner Suburbs 5,936 12.4% (13) (79)
Route 128 75,847 17.2% 458 308
Route 495 48,929 24.4% 28 308
Worcester 2,015 19.3% (2) 54
SUPPLY AND DEMAND
The suburban of ce and R&D market totals nearly million
square eet, with perormance and product varying rom one
submarket to the next. Class A properties comprise % o the
market, with a majority (close to %) o this high-end of ce
space located in the Route submarkets.
The growing tech and biotech industry in greater Boston has
been helping to drive the suburban recovery. As such, biotech/
pharmaceutical and health care/medical rms are among themost active tenants in the suburbs right now. Business service
and computer sotware and service companies also top the list
o tenants seeking new of ce space.
There are more than tenants, representing roughly .
million square eet with active suburban requirements, and the
median size requirement is , square eet. Just
tenants (each needing at least , square eet) account
or more than hal o this demand. Some o the more sizeable
tenants in the market with potential requirements over the next
to months include:
Tenant SF Industry Target Market
Bose Corporation 300,000Consumer Products& Services
Routes 495 West/Route 495 North
GE Healthcare 250,000 Health Care/Medical Route 495 West
Dunkin Brands 210,000Consumer Products& Services
Route 128 South/Route 128 Mass Pike
Invensys Systems 200,000Computer Sotware& Services
Route 495 South/Route 128 South
Boston FinancialData Services
200,000 Financial Services Route 128 South
VELOCITY
Leasing activity has held steady in the suburban of ce marke
particularly in the Route Mass Pike and Route West
submarkets. Transactions over , square eet were ew
and ar between in the second quarter, with Trip Advisors
,-square-oot lease at Center in Needham being
one o the largest. Wellington Management's ,-square
oot renewal at Campus Drive in Marlborough also toppe
the list o leases executed in the past three months. Howeve
neither o these transactions contributed to net absorption th
quarter, as Trip Advisors new headquarters is not yet
underway and Wellingtons lease was only a renewal o
currently occupied space.
Companies are more bullish on the suburban submarkets, an
recent expansions have bolstered demand or of ce space. A
previously discussed, Trip Advisors lease at Center will
more than double the size o the companys current space in
Newton. Implant Sciences also more than doubled its
headquarters and will be relocating rom , square eet
at Research Drive to , square eet at ResearcDrive, Wilmington. Finally, Shire Pharmaceuticals expanded
its ootprint by close to , square eet by subleasing
space at Hayden Avenue, Lexington rom AMAG
Pharmaceuticals. AMAG went on to lease , square ee
rom Boston Properties at the Bay Colony Corporate Center.
Landlords can expect to see suburban Boston absorption
increase in the coming quarters, as businesses remain
optimistic about market conditions.
MARKET VIEWPOINT | Q
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Suburban Overview
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Year-to-date, the Route submarket has seen solid leasing
activity and absorption. Tenants have been most active in
Route West, but Route South has recently garnered
some attention. In act, Bridgemedica leased more than ,
square eet at Forbes Boulevard, Manseld, and NewEngland Controls inked a deal or , square eet at
Oxord Road, Manseld. With such positive momentum and
ample available space, rms will be more likely to give this
submarket a second look in the coming quarters. In Route
North, however, the market is still precarious. Despite large
leases executed by Teleex Medical and Implant Sciences and
Verizons expansion at Cross Point III in Lowell, absorption is
still in the red. Both Enterasys and MetLie vacated more than
, square eet combined in Andover and Lowell,
respectively.
Some o the larger transactions executed during the quarter
included:
Tenant Address SF
Trip Advisor (e) Center 128, Needham 280,000
Wellington Management (r) 100 Campus Drive, Marlborough 100,000
Teleex Medical 16 Elizabeth Drive, Chelmsord 94,000
ConVerge Diagnostic Services 4 Technology Drive, Peabody 72,000
Compuware 404 Wyman Street, Waltham 68,145
Implant Sciences (e) 500 Research Drive, Wilmington 58,345
Shire Pharmaceuticals (e) 100 Hayden Avenue, Lexington 55,924(r) renewal (e) expansion
ABSORPTION AND VACANCY
Through the second quarter, the suburban of ce and R&D
markets have realized close to , square eet o
absorption, which is on pace to surpass last years total o
nearly one million square eet. This positive movement has
allowed vacancies to inch down toward levels, endingthe second quarter at just .%. Given the momentum in the
market, continued recovery is expected in the coming quarte
On the whole, the Route submarkets have seen a rather
pedestrian recovery thus ar, with little vacancy movement
over the past year. However, there is still some push and pu
in the market with pockets o strong leasing mitigating are
weaknesses. Tenants have been laser-ocused on Waltham
and Burlington, which has resulted in a ull percentage point
decline in vacancies in both towns over the past year. Keurig
expansion at South Avenue, Burlington (, square
eet) and AMAG Pharmaceuticals lease at Winter Stree
Waltham (, square eet) contributed to this recent
growth.
Though still tracking well above the suburban Boston averag
vacancies have been declining at a steady clip in the Route
submarkets over the past year. In act, rates are tracking
below %, which is in line with levels. A handul o
mid-sized transactions took place in the Route South
submarket, helping to push vacancies here below % or th
rst time since . Despite some good leasing activity in
Wilmington, the vacancy rate in the Route North
submarket has seen little movement in the past two years.
Suburban Overview
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%
%
%
%
%
%
SF
(Thous
ands)
Vacancy RateAbsorption
Historical Vacancy & AbsorptionOice and R&D
%
%
%
%
%
%
Q
Route Vacancy Route Vacancy Total Vacanc
Comparative Vacancy Rates
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OFFICE RENTAL RATES
Weighted average asking rents or Class A of ce range rom
just above per square oot in the Route North
submarket to - per square oot in the Mass Pike
and Inner Suburban submarkets. Asking rents have inched
higher in recent quarters, with outsized gains occurring in the
Route Mass Pike, Inner Suburbs, and Route West
submarkets.
Despite posting modest vacancy declines over the past year,
average of ce rents in the suburban market are generally at.
But there are pockets o growth. Recent leasing proposals at
select properties have been aggressively quoted, and certain
segments o the market are seeing signs o improvement with
lease rates in Needham, Waltham, and Wellesley in the high
s to low s per square oot.
TRENDS
With more than % o the metros of ce inventory located in
the suburbs, the vacancy rate is slower to move than the
Boston or Cambridge markets, and is expected to decline
marginally in the coming quarters.
Tenant growth and expansion have taken hold. Look or more
relocations and expansion in the core Route Mass Pike
submarket. The recovery in less central locations will continue
to lag behind.
Select Class A, amenity-rich buildings located along the
stretch rom Burlington to Needham have been the rst to
realize rental growth. Rents or new and premier Class A
buildings in these locations should see more upward
momentum this year.
In addition to the economics o rent per square oot, tenants
seek value through ef ciency, amenities and sustainability.
MARKET VIEWPOINT | Q
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Greater Boston continues to be a sought-ater investment market, generally characterized by an over-supply o buyers, an under-sup
o attractive investment opportunities and accelerating asset pricing. Many institutional investors are having dif culty deploying cap
and nd themselves yield starved in the current low interest rate environment. Core of ce buyers previously ocused exclusively
the CBD have moved boldly into the suburbs, lured by a perceived yield premium and an abundance o oerings. Fueled by improv
leasing undamentals in the best-perorming submarkets, owners o top-tier suburban of ce properties are looking to exploit martiming and achieve premium pricing. The decline in sale volume in the CBD of ce sector is not or lack o interested buyers, but rather
due to a dearth o would-be sellers. Ownership o much o Bostons tower market is concentrated among long-term holders (Bost
Properties, TIAA-CREF) or is part o a potential portolio play (Equity Of ce). In addition, rising rents are enticing owners to wait
income growth at lease roll over beore selling. Interest rates inched upward and the -year Treasury yield increased basis poi
over the course o the second quarter. Market watchers are closely monitoring the impact this will have on lending rates and equ
return hurdles.
During the rst hal o , Greater Boston registered an aggregate sales volume o . billion among the our major asset class
(of ce, industrial, retail, multiamily). This dollar amount is on track to come in slightly behind s aggregated total o . billion. T
major story is the dramatic increase in the volume o suburban of ce transactions. In the rst hal o suburban of ce sales tota
. billion; well on its way to eclipse s annual total o . billion. In regard to the other asset classes, CBD of ce is trailing
sales volume, while industrial, retail, and multiamily sales are on par.
BOSTON CBD
Two institutional investors made major headlines in the second quarter o , with TIAA-CREF acquiring the stabilized Bro
Street rom Pearlmark Real Estate or per square oot and a sub-% cap rate, and Deutsche Asset & Wealth Management pay
per oot or the nearly vacant Milk Street. In other news, a joint venture o Synergy Investments and Divco West purchas
three buildings and a parking garage in the Fort Point District rom the Archon Group. The in-place cash ow o the -space park
garage will provide a solid revenue stream as the venture leases up the remaining of ce space. Selected transactions include:
Address Buyer Seller Price SF $/SF
40 Broad Street TIAA-CREF Pearlmark Real Estate Partners $110,000,000 283,000 $388
Seaport Whar Portolio Synergy Investment & Development JV Divco West Archon Group $53,000,000* 339,497*
45 Milk Street Deutsch Asset & Wealth Management Anglo-Irish $21,000,000 68,829 $305
628-636 Washington Street Washington Liberty LLC LNR Partners $8,137,500 44,011 $185
*includes parking garage
CAMBRIDGE
In sought-ater Cambridge BioMed Realty Trust expanded its Cambridge ootprint with the purchase o Charles Street or
million or /SF. The property is ully leased to the Whitehead Institute or BioMedical Research. Alewie was a beneactor
intensiying investor interest in Cambridge as Synergy sold Fawcett Street to Grif th Properties. With Red Line access and well ov
, residential units either permitted or under construction, Alewie is becoming a live/work/play alternative to Kendall Square.
Address Buyer Seller Price SF $/SF
Broad Institute320 Charles Street
BioMed Realty Trust Private investment group $52,000,000 99,500 $523
39 JFK Street Morningside Group Delta Properties $33,100,000 26,250 $1,261
10 Fawcett Street Grif th Properties Synergy Investment & Development $31,300,000 130,304 $240
SUBURBS
There were many opportunities in the second quarter with assets that had both in-place cash ow as well as value-add componen
Charles River Realty and National Development paid ,, and a reported .% cap rate or a stable ten-building of ce porto
Capital Markets
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in Burlington that included additional in-place development rights to urther increase their returns. Rockwood Capital purchas
Waltham Place, % leased, and a reported .% cap rate, with the goal o leasing it up at market and raise returns well above eig
percent. In Quincy, Campanelli and Trigate Capital purchased the vacant Heritage Landing buildings or per square oot, well belo
the estimated replacement cost o per oot. Of ce transactions include:
Address Buyer Seller Price SF $/S
New England Executive Park, Burlington Charles River Realty/National Development JV Blackstone $216,000,000 1,032,209 $20
Riverside Center, Newton Hines Global REIT, Inc. Blackstone $197,250,000 510,000 $387
Arsenal on the Charles, Watertown AthenaHealth Harvard University $168,500,000 768,133 $219
266 and 275 Second Avenue, Waltham Rockwood Capital/Grif th John Hancock Lie Insurance $34,500,000 201,565 $171
275 Washington Street, Newton Taurus Investments TA Associates $34,000,000 172,179 $197
Industrial sales volume was just shy o rst quarter totals and is on par with . Selected industrial sales include:
Address Buyer Seller Price SF $/S
175 Kenneth Welch Drive, Lakeville AR Capital Sycamore Partners $36,743,057 555,695 $66
1 Investors Way, Norwood US Realty Advisors The Davis Companies JV Marcus Partners $32,300,000 242,189 $133
300 Riverpark Drive, Reading Tritower Financial Group JV Cresset Partners Taurus Investments $32,250,000 208,921 $154
MULTIFAMILY
With ample capital looking to invest in Boston and the limited supply o core assets, owners in secondary markets see this as
opportune time or listing multiamily assets. Over the next months, there will be signicant new supply coming online and it has y
to be determined how this might aect returns or existing multiamily product.
Address Buyer Seller Price Units $/Uni
Douglass Park Apartments650 Columbus Avenue, Roxbury
The Hamilton Company Douglas Plaza Housing $52,000,000 122 $426,32
Old Colony Lane60 Pleasant St. & 1-17 Old Colony Lane, Arlington
Old Colony Realty Partners/Andre Danesh David Wilert Trust $32,400,000 250 $129,60
Edmunds House Apartments15 Edmunds Road, Framingham
Beacon CommunitiesEdmunds House ApartmentsAssociation
$22,000,000 190 $115,78
RETAIL
Novaya Ventures and Urban Meritage were active in the second quarter, staying true to their strategy o investing in Newbury Stre
retail. Purchasing , , and Newbury Street gives the joint venture a strong presence rom Arlington to Faireld Streets. Giv
steadily improved consumer condence and with it, consumer spending, retailers on both Newbury Street and Main Street w
recognize increased rents and returns.
The ocus in suburban retail transactions remains on anchor-credit tenants over local, suburban retailers. As undamentals improve acompetition tightens, the market will determine how willing retail investors will be to move up the risk curve to riskier tenants a
riskier locations. Selected transactions include:
Address Buyer Seller Price SF $/S
The Mall at Whitney Field100 Commercial Street, Leominster
Vintage Real Estate LLC U.S. Bank $36,100,000 636,526 $57
Newbury Street Portolio, Boston Novaya Ventures JV Urban Meritage Various $33,210,000 34,126 $973
Riverway Plaza729 Bridge Street, Weymouth
CBRE Global Investors Samuels & Associates $21,500,000 249,447 $86
400 Presidential Way, Woburn Realty Income Corporation National Development $21,100,000 32,500 $649
MARKET VIEWPOINT | Q
Colliers International | pCONTACT: Mary Sullivan Kelly | mary.kelly@colliers.com
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7/27/2019 Viewpoint Q2 13
12/12
Colliers International Federal StreetBoston, MA,
The inormation contained herein has been obtained rom sources deemed reliable. While every reasonable eort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed or any inaccuracies. Readers are encouraged to consult their
proessional advisors prior to acting on any o the material contained in this report. This publication is the copyrighted property o Colliers
International and/or its licensor(s).
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MARKETSQUARE FEET
(SF) SUPPLY
DIRECT SF
AVAILABLE
SUBLEASE SF
AVAILABLEVACANCY*
Q2 2013
ABSORPTION
YTD
ABSORPTION
BOSTON 60,911,211 6,814,929 751,442 12.4% 138,299 434,833
Back Bay 12,171,940 973,070 211,997 9.7% 137,521 55,717
Financial District 33,591,139 4,571,554 375,418 14.7% (126,848) 151,489
Charlestown 2,843,898 273,562 15,800 10.2% 46,267 53,550
Crosstown 1,025,000 22,000 3,453 2.5% (7,000) 16,547
Fenway/Kenmore 1,826,057 129,110 0 7.1% 4,700 (1,799)
North Station 1,863,372 127,375 5,000 7.1% 107,442 36,716
Seaport 6,405,788 579,473 119,936 10.9% (41,979) 83,145
South Station 1,184,017 138,785 19,838 13.4% 18,196 39,468
CAMBRIDGE 19,855,661 1,551,964 390,411 9.8% (169,486) 138,895
Alewife Station/Route 2 2,756,490 317,915 102,442 15.2% (103,446) (123,141)
East Cambridge 15,173,025 1,180,145 287,969 9.7% (62,540) 216,131
Harvard Square/Mass Ave 1,926,146 53,904 0 2.8% (3,500) 45,905
SUBURBS 132,727,539 23,344,466 2,815,763 19.7% 471,779 590,750
Inner Suburbs 5,936,062 647,498 89,459 12.4% (13,095) (78,943)
Route 128 North 8,276,548 1,496,425 153,111 19.9% (70,621) (195,552)
Route 128 Northwest 22,733,308 2,951,455 611,005 15.7% 209,795 (86,685)
Route 128 Mass Pike 29,401,344 3,804,300 816,108 15.7% 289,707 492,509
Route 128 South 15,436,071 3,142,126 105,592 21.0% 29,289 97,666
Route 495 North 25,982,086 5,868,362 321,545 23.8% (17,117) (185,589)
Route 495 West 18,347,382 4,292,208 627,015 26.8% (68,388) 387,619
Route 495 South 4,599,604 785,516 58,981 18.4% 113,732 106,139
Worcester 2,015,134 356,576 32,947 19.3% (1,523) 53,586
TOTAL 213,494,411 31,711,359 3,957,616 16.7% 440,592 1,164,478
*Including sublease space
Q STATISTICS | OFFICE/R&D
Market Snapshot
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