GREATER BOSTON
2018 Q1 MARKET TRENDS
FEATURED MARKETS
128 CENTRAL
495 WEST
METROWEST
128 NORTH/RT 3
495 SOUTH
WWW.RWHOLMES.COM
128 Central
Office
10.8% $31.00/SF 445,457 SF
Vacancy Rate Average Rate Under Construction
(gross)
Noteworthy
Class A & B space Transactions
2018 Q1 Market Health Recap
Vacancy Rate Sale Price per SF Under Construction Lease
Vacancy Rates have stayed Sale prices increased s$21/sf from Q4 The square footage of projects currently 900 Winter St
within half a percentage Waltham
point from Q4 2017 2017 to Q1 2018 to an average of under construction have already Alkermes
220,000 SF
$252/sf. Properties that come available surpassed 2017 with several more
Lease
are quickly placed under agreement proposed and awaiting a lead tenant
490 Arsenal St
Deal Breakdown Watertown
Q1 Transaction Breakdown (#) Q1 Lease Transactions by Size Kala Pharmaceuticals
7 66,000 SF
16 Jan
78 14 Feb
12 Mar
10
8
6
4
2
0
Sales Leases
Coming to Market Sale
New Product
51 Sawyer Rd
Waltham
$47.4 Million
200 Smith St | Waltham 152 Grove St | Waltham
430,000 SF Class A Office Space 130,000 SF of Class A Office/R&D Space
The massive development called Post A mix of creative office and R&D space
is filled with state of the art amenities within an amenity-filled campus setting
495 West
Office
21.1% $19.25/SF 0 SF
Vacancy Rate Average Rate Under Construction
(gross)
Class A & B space
2018 Q1 Market Health Recap Noteworthy
Transactions
Sales Activity Building Renovations Vacancy Rates Lease
Though only two sales transactions In connection to the increased 495 West vacancy rates remain 100 Crowley
were completed in Q1, several showing activity, owners are stable. Over the past five years Marlborough
realizing the importance of updating Allegro MicroSystems
more transactions are expected to tired lobbies and amenities to the vacancy rates have
close in Q2 decreased substantially 50,000 SF
attract new tenants
Lease
Deal Breakdown 5 Q1 Lease Transactions
4 114 Turnpike Rd
Q1 Transaction Breakdown (#) 3 Jan Westborough
5 2 Feb Liberty Mutual
1 Mar
32 0 24,000 SF renewal
Sales Leases
On the Market Lease
Sales
132 Turnpike Rd
Southborough
Block Engineering
17,260 SF
Ferris Development Package 293 Boston Post Road | Marlborough
Ferris Development decided to test the There have been numerous bidders for
sales market by offering 4 of their the first class, 178,700 SF office building,
office buildings, totaling 580,000 SF rumored to now be under agreement
MetroWest
Office
13.1% $25.65/SF 690,000 SF
Vacancy Rate Average Rate Under Construction
(gross)
Noteworthy
Class A & B space Transactions
2018 Q1 Market Health Recap
Startup Growth Rental Rates Vacancy Rates Sale
There has been an influx in small Area rental rates have stabilized Vacancy has increased due to 1075 Worcester Rd
space requirements in the area at rates significantly lower than relocations at 9/90 Corporate Natick
caused by an increase in startup comparable properties minutes Center in Framingham. The park
companies in the tech and biotech away along 128 Central, providing is 27% vacant with 331,000 SF $4.75 Million
companies a value opportunity
sectors available Lease
Deal Breakdown Q1 Lease Transactions 200 Crossing Blvd
Framingham
Q1 Transaction Breakdown (#) 4 LTC Fast Pay
3 7,590 SF
2
2 Jan
1 Feb
0 Mar
15
Sales Leases
Coming to Market Sale
New Product
33 New York Ave
Framingham
$9.26 Million
1075 Worcester Rd 33 New York Ave
65,000 SF Office/R&D Building 106,000 SF Office/R&D Building
20,000 SF available in Exponent’s Renovation of old MetroWest Daily News
state of the art office/lab facility HQ with focus on Life Science tenants
128 North/Rt 3
Office
17.0% $21.90/SF 365,000 SF
Vacancy Rate Average Rate Under Construction
(gross)
Class A & B space
2018 Q1 Market Health Recap Noteworthy
Transactions
Vacancy Rates Leasing Activity Sales Price per SF Lease
Vacancy rates in this market Leasing activity remains strong For stabilized, Class A office sales, 55 Network Dr
have steadily trended downward within the market. Of the four prices averaged around $210/sf. For Burlington
over the past 10 years, despite largest lease transactions, two vacant or add-value properties, the
brought tenants from outside the number drops significantly to $46/sf on CA Technologies
the addition of 3 million SF of 80,000 SF
new product submarket average
Sale
Deal Breakdown
900 Chelmsford St
Q1 Transaction Breakdown 12 Q1 Lease Transactions Lowell
7 10
Jan $227 Million
85 8 Feb
6 Mar
4
2
0
Sales Leases
Coming to Market Sale
New Product and Renovations
150 Minuteman Rd
Andover
$32 Million
48-52 Dunham St | Beverly 55 Cherry Hill Rd | Beverly
145,000 SF of Class A Office Space 175,000 SF of Class A Office/R&D Space
Speculative Owner/User: Krohne Inc.
495 South
Industrial
7.7% $7.35/SF 653,456 SF
Vacancy Rate Average Rate (NNN) Under Construction
Class A & B space
Noteworthy
2018 Q1 Market Health Recap Transactions
Months on Market Under Construction Rental Rates Lease
The months a property is on The continued demand for flex and The industrial market continues to 27 Otis St
the leasing market has industrial space has pushed companies boom. There is not enough Westborough
out of the core 128 market and into 495 Columbia Tech
decreased since 2015, with a west and south, causing an increase in supply to meet demand, causing a
majority of space being on the continued upward trend in rental 88,000 SF
market for less than 6 months spec and build to suit developments
rates Lease
Deal Breakdown 419 Maple St
Bellingham
Q1 Transaction Breakdown Q1 Lease Transactions Blue Linx
490,000 SF
4
Sale
13 3 Jan
24 2 Feb
1 Mar
Sales Leases 0
Coming to Market
New Product
165 Grove St
Franklin
$17.3 Million
351 Maple St | Bellingham 301 Bartlett St | Northborough
300,000 SF of Industrial Space 220,100 SF of Industrial Space
One of two state of the art developments Built on spec warehouse/distribution
under construction in the business park
facility with 32’ clear height
RW Holmes: Q1 by the Numbers
29 4 60%
Lease Sales Repeat
Transactions Transactions Clients
Completed Completed
SAMPLE OF CLIENTS ADVISED IN Q1:
508.655.5626 321 COMMONWEALTH RD, SUITE 202 | WAYLAND, MA 01778 WWW.RWHOLMES.COM
This report was created for you through the knowledge and insight of our
executive team, who have a combined 245 years of industry experience.
Executive Team
Garry Holmes Dean Blackey John Eysenbach Craig Johnston Paul McKeon
Managing Director Executive Vice President Senior Vice President Director of Finance
President [email protected] [email protected]
[email protected] [email protected] [email protected]
Arthur Amadei Robert Strelke Jim Bartholomew Mike Ogasapian Elizabeth Holmes
Senior Vice President Vice President Assistant Vice President Assistant Vice President Director of Corporate Services
[email protected]
[email protected] [email protected] [email protected] [email protected]
508.655.5626 321 COMMONWEALTH RD, SUITE 202 | WAYLAND, MA 01778 WWW.RWHOLMES.COM