Q4-2017-MarketReport-WEB

OFFICE STATISTICS SUBURBAN

SUBURBAN

TOTAL INVENTORY (SF)

TOTAL VACANT (SF)

TOTAL VACANCY RATE

Q4 NET ABSORPTION (SF)

YTD NET ABSORPTION (SF)

ASKING RENT ($/SF)

Class A

58,523,990

7,743,862

13.2%

73,493

395,289

$28.82

Class B

53,390,150

8,752,251

16.4%

104,369

339,346

$22.38

CLASS A & B TOTAL

111,914,140

16,496,113

14.7%

177,862

734,635

$25.33

Vacancy and Net Absorption

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0%

1,500,000

Vacancy and Net Absorption VACANCY AND NET ABSORPTION

TRENDS

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0%

1,500,000 ,0 ,000

• The Suburban office market held steady in 2017, with new construction and some weakness in the Route 495 markets keeping vacancies in the high-14% range. • While urban migration has kept a steady flow of tenants moving to the city, the suburbs remain active. Simpson Gumpertz & Heger’s 110,000-square-foot lease kicked off construction at 20 CityPoint in Waltham, and CA Technologies committed 79,438 square feet of former Oracle space at 45 Network Drive in Burlington; relocating from Framingham. Alkermes and Tesaro are reportedly close to inking deals for new build-to-suit projects in Waltham as well. • A large block of space came off the market in the fourth quarter. Astellas Institute leased the entirety of Bose’s sublease space at 9 Technology Drive in Westborough, and plans to expand its R&D facility. The life science company is currently located at 33 Locke Drive in Marlborough.

1,000,000 5 ,

500,000

0

0

(500,000)

(500,000) (1,000,000)

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

(1,000,000)

Net Absorption

Vacancy

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Net Absorption

Vacancy

CLASS A & B RENTS Class A & B Rents

Class A & B Rents $35

$35 $30

$30 $25

• Reebok’s former headquarters in Canton is reportedly under agreement, and offers a potential redevelopment opportunity for the new owners.

$25 $20

$20 15

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

• MilliporeSigma moved into it’s new 280,000-square-foot headquarters at 400 Wheeler Road in Burlington, vacating space in Natick and on Concord Road in Billerica.

$15 0

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

$10 $5

$5 0

Q4 2014 Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

$0

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

NOTABLE TRANSACTIONS

Class B Class A

TENANT

ADDRESS

SIZE

SUBMARKET

TYPE

Class B Class A

RECENT CONSTRUCTION Construction

9 Technology Drive, Westborough

Relocation/ Expansion

Astellas Institute

250,813 Route 495 West

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

Simpson Gumpertz & Heger

20 CityPoint, Waltham 110,000 Route 128 West

Relocation

45 Network Drive, Burlington

Route 128 Northwest

Relocation/ Contraction

CA Technologies

79,438

275 Grove Street, Newton

Renewal/ Contraction

TechTarget

75,000 Route 128 West

Q3 2017 Q4 2017 Q1 2018 Q2 2018

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

100 Brickstone Square, Andover

Route 495 Northeast

Relocation/ Expansion

Aras Corporation

65,298

Leased Available

www.naihunneman.com

303 Congress Street Boston, MA 617.457.3400

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