Q4-2017-MarketReport-WEB

Q4

INDUSTRIAL STATISTICS FLEX / R&D

2017

Vacancy and Net Absorption

10.0% 12.0% 14.0% 16.0%

700,000

FLEX / R&D

600,000

TOTAL INVENTORY (SF)

TOTAL VACANT (SF)

TOTAL VACANCY RATE

Q4 NET ABSORPTION (SF)

YTD NET ABSORPTION (SF)

ASKING RENT NNN ($/SF)

500,000

400,000

0.0% 2.0% 4.0% 6.0% 8.0%

300,000

TOTAL

50,593,143

5,071,391

10.0%

101,136

518,037

$10.85

200,000

100,000

0

(100,000)

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

Vacancy and Net Absorption

VACANCY AND NET ABSORPTION Vacancy and Net Absorption

TRENDS

0.0% 2.0% 4.0% 6.0% 8.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 10.0% 12.0% 14.0% 16.0%

Net Absorption

Vacancy

100,000 100,000 $10.00 200,000 200,000 300,000 300,000 $11. $12.00 400,000 400,000 600,000 600,000 700,000 700,000

• The Greater Boston Flex/R&D market has absorbed more than 2.6 million square feet of space in the last three years; driving vacancies down by over 400 basis points during that time. As a result, rents have increased by 19% since the end of 2014. • Technology, robotics, light manufacturing, and other companies needing a small office and/or assemblage component remain key drivers of demand for Flex/R&D space in the Boston metro. • The area’s thriving life science industry continues to drive industrial demand as well. Innovive, a rodent cage maker servicing lab researchers, is relocating its operations from New Hampshire to Billerica and establishing its East Coast headquarters.

500,000 500,000 Flex / R&D Rents

0 0

$9.00

(100,000) (100,000) $8.00

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

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

$7.00

Net Absorption Net Absorption

Vacancy Vacancy

$6.00

FLEX / R&D RENTS Flex / R&D Rents Flex / R&D Rents $5.00

• HITEC Sensor Solutions and Monogram Foods also signed lease expansions in the Route 495 North submarket during the fourth quarter.

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

$10.00 $10.00 $11.00 $11.00 $12.00 $12.00

• ETM Manufacturing vacated 43,200 square feet at 24 Porter Road in Littleton, and Sabic Polymershapes moved out of the 25,600-square-foot 116 Queenstown Street in Devens. • Simpson Gumpertz & Heger has put 125,000 square feet on the market at 41 Seyon Street in Waltham. The engineering firm recently inked a deal to anchor Boston Properties’ 20 CityPoint. Q3 2016 4 1 7

$5.00 $5.00 $6.00 $6.00 $7.00 $7.00 $8.00 $8.00 $9.00 $9.00

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2 3 4

NOTABLE TRANSACTIONS

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

TENANT/BUYER

ADDRESS

SIZE

SUBMARKET

TYPE

Recent Construction RECENT CONSTRUCTION Recent Co str cti

129 Concord Road, Billerica 300 Foxborough Boulevard, Foxborough 10 Elizabeth Drive, Chelmsford

Route 495 North

Relocation/ Expansion

Innovive

68,000

140,000 140,000

James Campbell Company

Route 495 South

120,000 120,000

45,000

Sale

100,000 100,000

80,000

80,000

HITEC Sensor Solutions

Route 495 North

Relocation/ Expansion

33,750

60,000

60,000

40,000

40,000

301 Ballardvale Street, Wilmington

Route 128 North

Monogram Foods

23,206

Expansion

Q4 2017 Q1 2018

20,000

Q4 2017 Q1 2018

20,000

0 Recent Construction Recent Construction 0

27 Industrial Avenue, Chelmsford

Q1 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

Q1 2018

Route 495 North

Q1 2015

Q2 2015

Q1 2018

MEC Electric

8,824

Relocation

60,000 60,000 80,000 80,000 100,000 100,000 120,000 120,000 140,000 140,000

Leased Available Leased Available

8

Committed to Boston, Connected to the World.