STATISTICS… · 2018-09-05 · Q4 303 Congress Street | Boston, MA 02210 | 617.457.3400 Q4 16 Class A&B Rents Submarket Trends $0 $5 $10 $15 $20 $25 $30 $35 $40 2014 Q4 2015 Q1 2015

495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

128 WEST

INNERSUBURBS

128 SOUTH

128 WEST OFFICE M

ARKETQ4

2016

ASKING RENT

LEASING ACTIVITY

12-MONTH ABSORPTION

SUBLEASE VACANCY

DIRECT VACANCY

STATISTICS OVER THE LAST 12 MONTHS

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q4

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q4 2016

Class A&B Rents

Submarket Trends

$0

$5

$10

$15

$20

$25

$30

$35

$40

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4

Class A Class B

‐ While vacancies have remained elevated above 9% for the majority of the last two years, rates are well below the submarket's 5‐year average vacancy of 11.7%.

‐ Early in the fourth quarter Clarks Shoes moved into its new 120,000‐square‐foot headquarters in Waltham.

‐ Route 128 West is becoming a Mecca for shoemaking companies. Rockport Group recently relocated from temporary space in Canton to its new headquarters in West Newton.

‐ Companies continue to migrate inward toward Boston. A large offie user is reportedly relocating from the north and close to taking down close to half of the nearly‐complete LINX in Watertown.

‐ Currently there is nearly 1.2 million square feet of office space under construction in Route 128 West. Once delivered, total inventory in this submarket will have increased by another 5.3%.

ArrowsDirect Vacancy Sublease Vacancy 12-month Absorption Leasing ActivityAsking RentDown Up Down Down Up

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantClass A 12,255,757 1,025,595 862,705 345,609Class B 9,657,897 127,000 763,771 120,237Total 21,913,654 1,152,595 1,626,476 465,846

Notable TransactionsTenant Address City SizePatheon Inc. 140 Kendrick Street Needham 44,000 Net Prosspects 610 Lincoln Street Waltham 30,374 Alzheimer's Ass 309/411 Waverley Oa Waltham 28,917 Hunneman DealConvergent Den140 Kendrick Street Needham 16,000 ARM 100 Fifth Avenue Waltham 10,412

Featured Deal

Vacancy and Net Absorption

NAI Hunneman represented the landlord Duffy Properties in two leases with the Alzheimer's Association at Wavley Oaks in Waltham. The organization is relocating into 25,833 square feet at 309 Waverley Oaks from Watertown and taking down 3,084 square feet of storage space at 309 Waverley Oaks.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4

Net Absorption Vacancy

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Patheon Inc. 140 Kendrick Street Needham 44,000

Net Prospects 610 Lincoln Street Waltham 30,374

Alzheimer's AssociationNAI Hunneman Deal

309/411 Waverley Oaks Waltham 28,917

Convergent Dental 140 Kendrick Street Needham 16,000

ARM 100 Fifth Avenue Waltham 10,412

NOTABLE TRANSACTIONS

TOTAL INVENTORY

(SF)

UNDER CONSTRUCTION

(SF)

DIRECT VACANT

(SF)

SUBLEASE VACANT

(SF)

TOTAL VACANCY

RATE

Q4 NET

ABSORPTION (SF)

YTD NET

ABSORPTION (SF)

ASKING RENT ($/SF)

Class A 12,255,757 1,025,595 862,705 345,609 9.9% 28,598 117,333 $37.23

Class B 9,657,897 127,000 763,771 120,237 9.2% 138,441 168,883 $31.84

TOTAL 21,913,654 1,152,595 1,626,476 465,846 9.5% 167,039 286,216 $34.70

FEATURED DEAL

28,917 SFWAVERLEY OAKS PARK, WALTHAM

NAI Hunneman represented Duffy Properties in two leases with the Alzheimer’s Association at Waverley Oaks Park in Waltham. The organization is relocating into 25,833 square feet at 309 Waverley Oaks Road from Watertown and is taking down 3,084 square feet of storage space at 411 Waverley Oaks Road.

STATISTICS

128 WEST OFFICE MARKET

SUBMARKET TRENDS

• While vacancies have remained elevated above 9% for

the majority of the last two years, rates are well below the

submarket’s 5-year average vacancy of 11.7%.

• Early in the fourth quarter Clarks Shoes moved into its new

120,000-square-foot headquarters in Waltham.

• Route 128 West is becoming a Mecca for shoemaking

companies. Rockport Group recently relocated from

temporary space in Canton to its new headquarters in West

Newton.

• Companies continue to migrate inward toward Boston.

A large office user is reportedly relocating from the north

and close to taking down close to half of the nearly-

complete LINX in Watertown.

• Currently there is nearly 1.2 million square feet of office

space under construction in Route 128 West. Once

delivered, total inventory in this submarket will have

increased by another 5.3%.