viewpoint q2 13

7/27/2019 Viewpoint Q2 13

1/12

GREATER BOSTONMARKET VIEWPOINTND QUARTER

Accelerating success.


2/12

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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SF

(Thousands)

Financial District Back Bay Seaport Oth

Transaction Velocity

MARKET VIEWPOINT | Q

p. | Colliers International

Boston Overview


3/12

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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Total Boston Vacancy RateTotal Boston Absorption

Projected Vacancy & Absorption


Colliers International | pCONTACT: Mary Sullivan Kelly | [email protected]


4/12

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SF

(Thousands)

VacancyAbsorption

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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



Cambridge Overview


5/12

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




6/12

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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Historical Vacancy & AbsorptionCambridge Lab



Cambridge Overview


7/12

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.


Colliers International | CONTACT: Mary Sullivan Kelly | [email protected]

Suburban Overview


8/12

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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Route Vacancy Route Vacancy Total Vacanc

Comparative Vacancy Rates




9/12

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.




10/12

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




11/12

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:


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:


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




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).

C lli I t ti l All i ht d

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CONTACT:Mary Sullivan KellySenior Vice President & Chie Research Of cer

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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

viewpoint q2 13

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