Q4-2017-MarketReport-WEB

INDUSTRIAL STATISTICS WAREHOUSE

Vacancy and Net Absorption

10% 12%

(400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 (4 , ) (200,00 ) 0 2 , 4 , 6 , 8 , ,0 , ,2 , ,4 , 1,600,000 (400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

WAREHOUSE

TOTAL INVENTORY (SF)

TOTAL VACANT (SF)

TOTAL VACANCY RATE

Q4 NET ABSORPTION (SF)

YTD NET ABSORPTION (SF)

ASKING RENT ($/SF)

0% 2% 4% 6% 8%

TOTAL

92,433,810

5,975,365

6.5%

510,969

684,834

$7.01

Vacancy and Net Absorption

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

Vacancy and Net Absorption VACANCY AND NET ABSORPTION

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q2 2015 3 4 1 6 2 3 4 1 7 2 3 4 TRENDS • Greater Boston’s warehouse market posted 684,834 square feet of positive absorption in 2017, with the Route 128 North, Route 495 Northeast and Route 495 South submarkets accounting for the lion’s share. • Lease rates in the local warehouse market surpassed $7/SF NNN in the fourth quarter. This represents a 15.8% increase from the end of 2014. Asking rents in the uber- tight Route 128 North market are among the highest in the metro, with rates in the southern submarkets averaging high-$5 to low-$6/SF NNN. • XPO Logistics signed a 169,968-square-foot lease at 176 Grove Street in Franklin (backfilling William-Sonoma space), with plans to relocate from roughly 54,000 square feet at 480 Sprague Street in Dedham. • EMS Warehousing relocated to 111,656 square feet at 800 John Quincy Adams Road in Taunton and IDI Distributors plans to occupy all of 45 Panas Road in Foxborough next quarter. • The 145,000-square-foot 5 5th Street in Peabody delivered vacant this quarter, while fully-occupied developments at 2 Marc Road in Medway and 260 Kenneth Welch Drive came on line as well. • Construction began on The Campanelli Business Park of Bellingham during the fourth quarter. The development includes two speculative buildings totaling 427,500 square feet of industrial space. Completion is set for the summer of 2018. Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

10% 12% 10% 12%

Net Absorption

Vacancy

0% 2% 4% 6% 8% 0% 2% 4% 6% 8%

Warehouse Rents

$7.25

$7.00

$6.75

$6.50

$6.25

Q4 2014 Q4 2014

Q1 2015 Q1 2015

Q2 2015 Q2 2015

Q3 2015 Q3 2015

Q4 2015 Q4 2015

Q1 2016 Q1 2016

Q2 2016 Q2 2016

Q3 2016 Q3 2016

Q4 2016 Q4 2016

Q1 2017 Q1 2017

Q2 2017 Q2 2017

Q3 2017 Q3 2017

Q4 2017 Q4 2017

$6.00

$5.75

Net Absorption Net Absorption

Vacancy Vacancy

$5.50

$5.25

Warehouse Rents Warehouse Rents $5.00 WAREHOUSE RENTS

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

$5.00 $5.00 $5.25 $5.25 $5.50 $5.50 $5.75 $5.75 $6.00 $6.00 $6.25 $6.25 $6.50 $6.50 $6.75 $6.75 $7.00 $7.00 $7.25 $7.25

Q4 2014 Q4 2014

Q1 2015 Q1 2015

Q2 2015 Q2 2015

Q3 2015 Q3 2015

Q4 2015 Q4 2015

Q1 2016 Q1 2016

Q2 2016 Q2 2016

Q3 2016 Q3 2016

Q4 2016 Q4 2016

Q1 2017 Q1 2017

Q2 2017 Q2 2017

Q3 2017 Q3 2017

Q4 2017 Q4 2017

NOTABLE TRANSACTIONS

Recent Construction Recent Co str cti

TENANT/BUYER

ADDRESS

SIZE

SUBMARKET

TYPE

RECENT CONSTRUCTION

176 Grove Street, Franklin 800 John Quincy Adams Road, Taunton 14 Aegean Drive, Methuen

Route 495 South

Relocation/ Expansion

800,000 8 0, 0

XPO Last Mile

169,968

700,000 7 0, 0

600,000 6 0, 0

Route 495 South

Relocation/ Expansion

EMS Warehousing

111,656

500,000 5 0, 0

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

400,000 4 0, 0

Route 495 Northeast

300,000 3 0, 0

Crown Holdings

85,000

Renewal

200,000 2 0, 0

100,000 100,000

100 Meadow Road, Hyde Park

Relocation/ Expansion

Zippy Shell

85,000

Urban Core

0

0

Q1 2015

Q2 2015

Q3 2015 Q3 2015

Q4 2015 Q4 2015

Q1 2016 1 2016

Q2 2016 2 2016

Q3 2016 3 2016

Q4 2016 4 2016

Q1 2017 1 2017

Q2 2017 Q2 2017

Q3 2017 Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q1 2015

Q2 2015

Q4 2017

Q1 2018

Q2 2018

Q3 2018

45 Panas Road, Foxborough

Route 495 South

Relocation/ Expansion

IDI Distributors

53,700

Leased Available Leased Available

www.naihunneman.com

303 Congress Street Boston, MA 617.457.3400

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