statistics… · 2018-09-05 · q4 303 congress street | boston, ma 02210 | 617.457.3400 q4 16...
TRANSCRIPT
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%.