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1
METRO BOSTONQ2 2018 | INDUSTRIAL REPORT
303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.NAIHunneman.com
TOTAL VACANCY RATE
Q2 NET ABSORPTION (SF)
ASKING RENT ($/SF)
UNDER CONSTRUCTION (SF)
7.5% 140,241 $9.14 2,257,606
2
2018Q2 INDUSTRIAL STATISTICS
WAREHOUSE
Total Vacancy
Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017
Net Absorption
-1,000
-500
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 2017 2018
SF (0
00s)
Net Absorption New Supply
0%
2%
4%
6%
8%
10%
12%
14%
2013 2014 2015 2016 2017 2018
5-Year Historical Average = 8.7%
TOTAL VACANCY
NOTABLE TRANSACTIONSW
AREHOUSE
NET ABSORPTION & SUPPLY
TRENDS• A handful of large move-outs in Greater Boston’s warehouse market pushed net
absorption into the red for the first time in over a year. Big-Hearted Books, Serta, EMS Warehousing and CGI Technologies all vacated space during the second quarter. That being said, vacancies only inched up by 10 basis points over the quarter, and rates remain well below historical averages. Strong leasing and persistent demand across multiple industrial sectors, including e-commerce, bodes well for warehouse market fundamentals in the near term.
• Robust demand for prime warehouse space has led to more build-to-suit construction in the marketplace. National Development and Charles River Realty are planning a fully-refrigerated wholesale center at 130 Eastern Avenue in Chelsea for Baldor Boston, LLC. Work continues on Spears Manufacturing’s new 112,500-square-foot distribution center adjacent to Norton Commerce Center. Americold Logistics’ 173,000-square-foot refrigerated facility in Middleborough, which will support Ocean Spray production and operations, is slated to deliver later this year as well.
• Some developers have opted for speculative construction. The Gutierrez Company recently broke ground on a 220,106-square-foot facility at the Crossroads Industrial Park in Northborough. Campanelli continues to move forward on the 127,500-square-foot 353 Maple Street and the 300,000-square-foot 351 Maple Street, both in Bellingham. All three projects are slated to deliver by the end of this year. While the construction pipeline has expanded, developers will likely struggle to keep pace with tenants’ robust demand for modern, state-of-the-art warehouse product.
• Investors remain active in the Greater Boston warehouse market. In a sale-lease back, The Seyon Group acquired the 350,469-square-foot 560 West Street in Mansfield from owner-user Medline Industries for $38.5 million or $110/SF. The tenant is rumored to be planning a new 800,000-square-foot facility in Uxbridge, and plans to lease their current location for a number of years. Infill warehouse product has been a highly desirable asset class, too. Calare Properties purchased the 31,950-square-foot 777 N Shore Road in Revere for $12.4 million or $388/SF at a 6.7% cap rate. Developers also remain attracted to older product facing functional obsolescence. Exeter Property Group divested 26 Cook Street in Billerica to Premier Storage Investors, who plans to redevelop the property into a self-storage facility.
• The nation’s tight labor market remains a headwind for warehousing and distribution. Given the meteoric rise in e-commerce and online shopping, the trucking industry in particular is facing a shortage of workers. One estimate puts national job openings in this industry at 63,000 this year, and the number is expected to increase moving forward. As a result, trucking wages are also rising swiftly. Year-over-year growth was roughly 4% of as May, which is nearly double overall national wage growth. While Boston is not a major national distribution hub like Atlanta or Chicago, these national trends are sure to have a local impact.
Total Vacancy
Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017
Net Absorption
-1,000
-500
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 2017 2018
SF (0
00s)
Net Absorption New Supply
0%
2%
4%
6%
8%
10%
12%
14%
2013 2014 2015 2016 2017 2018
5-Year Historical Average = 8.7%
Asking Rent ($/SF)
$7.30
3,218,820 45056687(136.96) 0.48359144
Q1 2013 12.3% 8.68%
350K SF275K SF200K SF50K SF 125K SF
Notable Transactions
Lighthouse Fiber
Archive America
Champagne Logistics
Arnold Industries (Bossard)
Medline
5-Year Historical Average = 8.7%
Route 495 South Route 128 South Route 128 North Route 495 West
TOTAL INVENTORY
(SF)
TOTAL VACANT
(SF)
TOTAL VACANCY
RATE
Q2NET
ABSORPTION (SF)
YTD NET
ABSORPTION (SF)
ASKING RENT ($/SF)
TOTAL 93,437,196 6,295,131 6.7% (23,502) 325,098 $7.30
3
INDUSTRIAL STATISTICS FLEX / R&D
Vacancy by Submarket
Net Absorption and Asking Rent
0%
2%
5%
7%
10%
12%
14%
17%
19%
2013 2014 2015 2016 2017 2018
Route 495/Metrowest Route 128 Urban Core
VACANCY BY SUBMARKET
NOTABLE TRANSACTIONSFLEX / R&
D
NET ABSORPTION AND ASKING RENT
TRENDS• Greater Boston’s Flex/R&D market continues to benefit from the growing tech,
biotech, and light manufacturing industries. Vacancies ended the second quarter at 9.4% as the market absorbed more than 100,000 square feet. Repligen took occupancy of close to 65,000 square feet at 111 Locke Drive in Marlborough, and ETM Manufacturing moved into 23,200 square feet at 24 Porter Road in Littleton after purchasing the building. Persistent demand from technology-related companies is expected to drive growth in the local Flex/R&D market in the coming quarters.
• The Route 128 Loop boasts some of the strongest Flex/R&D fundamentals in the region. Vacancies ended the second quarter of 2018 at just 5.8%; this is about half the rate in the Route 495 Loop and well below the rate in the Urban Core. Asking rents are well above the metrowide average, at $14.55/SF. However, space in close proximity to Boston maintains a $6-11/SF premium over space located in Route 128 South and Route 128 North. Users like Novanta (147,370 SF) and Alkermes (5,535 SF) are the types of firms leasing Flex/R&D space in the Route 128 markets.
• Analog Devices announced plans to consolidate its facilities across Massachusetts and relocate its headquarters from Norwood to Wilmington, where the company already maintains a large footprint. As part of a nearly $160 million project, the firm is planning to renovate its existing facilities (500,000 square feet of office, Flex/R&D and manufacturing space) as well as construct an additional 175,000-square-foot Flex/R&D building. The project also includes 50,000 square feet of community space (i.e., a fitness center and café). The company will keep a small presence in Norwood and Chelmsford as well as its recently opened startup incubator in downtown Boston. Work on Analog Devices’ expansion is expected to finish between 2019 and 2020.
• Infill locations are in high demand from both Flex/R&D users and investors. In Boston’s Seaport, 908 Devices is expanding their production operations and moving its headquarters to the Pappas Commerce Center in the third quarter. The manufacturer has leased 37,500 square feet at 645 Summer Street leaving 18,000 square feet behind at the Innovation & Design Building. Rafi Properties recently acquired the Ames Business Park, anchored by Greentown Labs, in Somerville during the second quarter. The site includes a mix of office, flex/R&D and industrial buildings.
• With vacancies declining by 580 basis points over the last 5 years, it’s not surprising Flex/R&D lease rates are surging in Greater Boston. Space runs from $7-$10/SF in the Route 495 Loop to the high-teens to low-twenties in the Route 128 West/Northwest and Urban Core submarkets. Overall asking rents rose to $11.39/SF in the second quarter; increasing by 7.6% over the last 12 months. Infill locations, close to population centers, have seen the steepest inclines in recent years. From 2014-18, Flex/R&D asking rents expanded by 68% in the Urban Core, 40% in Route 128 Northwest, and 34% in Route 128 West. As fundamentals remain strong, look for more rent gains in the near future.
$4
$6
$8
$10
$12
-100
0
100
200
300
400
500
600
700
2014 2015 2016 2017
SF (0
00s)
Net Absorption Asking Rent
Asking Rent ($/SF)$11.39
11.53 19.568.36 9.359.87 12.19
13.91 19.6318.15$ 10.75
16.29$ 21.238.40$ 9.999.25$ 8.37.36$ 7.699.43$ 9.94
185K SF140K SF95K SF5K SF 50K SF
Notable Transactions
Endeavor Robotics
ConsolidatedSterilizer
908 Devices
Novanta
Cross River Center
Route 128 Northwest Urban Core Route 495 North
TOTAL INVENTORY
(SF)
TOTAL VACANT
(SF)
TOTAL VACANCY
RATE
Q2NET
ABSORPTION (SF)
YTD NET
ABSORPTION (SF)
ASKING RENT ($/SF)
TOTAL 52,505,099 4,939,252 9.4% 114,507 424,837 $11.39
4
NEW ORLEANS
CURRENT: 45 FT.
PROPOSED: 50 FT.
MIAMI
CURRENT: 52 FT.
JACKSONVILLE
CURRENT: 40 FT.
PROPOSED: 47 FT.
CURRENT: 42 FT.
PROPOSED: 47 FT.
SAVANNAH
CHARLESTON
CURRENT: 45 FT.
PROPOSED: 52 FT.
NORFOLK
CURRENT: 50 FT.
PROPOSED: 55 FT.
BALTIMORE
CURRENT: 34-50 FT.
PROPOSED: 51 FT.
WILMINGTON
CURRENT: 38-40 FT.
PROPOSED: 45 FT.
PHILADELPHIA
CURRENT: 40 FT.
PROPOSED: 45 FT.
NY/NEW JERSEY
CURRENT: 50 FT.
CURRENT: 40 FT.
PROPOSED: 51 FT.
BOSTON
2018 BOSTON’S PORT ACTIVITYQ2
SELECT PORT CHANNEL DEPTHS
NEW ORLEANS
CURRENT: 45 FT.
PROPOSED: 50 FT.
MIAMI
CURRENT: 52 FT.
JACKSONVILLE
CURRENT: 40 FT.
PROPOSED: 47 FT.
CURRENT: 42 FT.
PROPOSED: 47 FT.
SAVANNAH
CHARLESTON
CURRENT: 45 FT.
PROPOSED: 52 FT.
NORFOLK
CURRENT: 50 FT.
PROPOSED: 55 FT.
BALTIMORE
CURRENT: 34-50 FT.
PROPOSED: 51 FT.
WILMINGTON
CURRENT: 38-40 FT.
PROPOSED: 45 FT.
PHILADELPHIA
CURRENT: 40 FT.
PROPOSED: 45 FT.
NY/NEW JERSEY
CURRENT: 50 FT.
CURRENT: 40 FT.
PROPOSED: 51 FT.
BOSTON
$350 MILLION IN DREDGING $220 MILLION IN FEDERAL FUNDING$130 MILLION I N S TAT E F U N D I N G
5
NEW ORLEANS
CURRENT: 45 FT.
PROPOSED: 50 FT.
MIAMI
CURRENT: 52 FT.
JACKSONVILLE
CURRENT: 40 FT.
PROPOSED: 47 FT.
CURRENT: 42 FT.
PROPOSED: 47 FT.
SAVANNAH
CHARLESTON
CURRENT: 45 FT.
PROPOSED: 52 FT.
NORFOLK
CURRENT: 50 FT.
PROPOSED: 55 FT.
BALTIMORE
CURRENT: 34-50 FT.
PROPOSED: 51 FT.
WILMINGTON
CURRENT: 38-40 FT.
PROPOSED: 45 FT.
PHILADELPHIA
CURRENT: 40 FT.
PROPOSED: 45 FT.
NY/NEW JERSEY
CURRENT: 50 FT.
CURRENT: 40 FT.
PROPOSED: 51 FT.
BOSTON
BOSTON’S PORT ACTIVITY
TOTA
L TE
Us
CO
NLE
Y TE
RM
INA
L
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
Mar-14
May-14
Jul-1
4
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-1
5
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Jul-1
6
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-1
7
Sep-17
Nov-17
Jan-18
Mar-18
May-18
TO
TAL
VEH
ICLE
SB
OS
TON
AU
TOPO
RT
Title: Total Vehicles - Boston Autoport
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
CURRENT ECONOMIC IMPACT1,600 BUSINESSES USE PORT7 , 0 0 0 L O C A L J O B S$5 BILLION IN LOCAL ACTIVITY
BOSTON : EXP ECTED COMPL ET ION 2 0 2 1CHANNEL OLD DEPTH (FT) NEW DEPTH (FT)OUTER HARBOR 40 51MAIN SHIPPING 40 47RESERVE 40 47
LAR
GES
T TR
AD
E PA
RTN
ERS
imports exports exports imports imports19.8979 Canada 10.9275 11% Canada 19.8979 20%13.2856 Mexico 9.2943 9% China 13.2856 13%10.7981 China 8.3566 8% Mexico 10.7981 11%
6.92 United Kingdom 7.6755 8% Ireland 6.92 7%5.7436 Germany 6.6033 7% Germany 5.7436 6%5.5219 Rest of World 57.1428 57%Rest of World 43.3548 43%5.12614.5695
3.2562.18841.62421.6119
1.6081.39541.3115 Title: Largest Trade Partners1.17871.08430.95010.89760.88210.6468
0.5920.582
0.58130.55
1.473392.8028
Canada11%
Mexico9%
China8%
United Kingdom8%
Germany7%
Rest of World57%
Exports
Canada20%
China13%
Mexico11%Ireland
7%Germany
6%
Rest of World43%
ImportsIMPORTS EXPORTS
imports exports exports imports imports19.8979 Canada 10.9275 11% Canada 19.8979 20%13.2856 Mexico 9.2943 9% China 13.2856 13%10.7981 China 8.3566 8% Mexico 10.7981 11%
6.92 United Kingdom 7.6755 8% Ireland 6.92 7%5.7436 Germany 6.6033 7% Germany 5.7436 6%5.5219 Rest of World 57.1428 57%Rest of World 43.3548 43%5.12614.5695
3.2562.18841.62421.6119
1.6081.39541.3115 Title: Largest Trade Partners1.17871.08430.95010.89760.88210.6468
0.5920.582
0.58130.55
1.473392.8028
Canada11%
Mexico9%
China8%
United Kingdom8%
Germany7%
Rest of World57%
Exports
Canada20%
China13%
Mexico11%Ireland
7%Germany
6%
Rest of World43%
Imports
$350 MILLION IN DREDGING $220 MILLION IN FEDERAL FUNDING$130 MILLION I N S TAT E F U N D I N G
*3-month moving average
*3-month moving average
TEUs = Twenty-Foot Equivalent Unit
Sources: MassPort, U.S. Census Bureau
6
INDUSTRIAL STATISTICS MANUFACTURING
2018
TRENDS• Vacancies in Greater Boston’s manufacturing market ended the second quarter at
6.9% as the market absorbed close to 50,000 square feet. Rates continue their general downward trend, and market conditions remain favorable for all industrial product types. Leasing velocity has been steady, with CI Works, Replimune and New England Spas executing large deals most recently. Asking rents in the manufacturing market remain elevated above $9/SF for the third consecutive quarter, and are sitting 6.5% above year-ago levels.
• Some large blocks of manufacturing space could hit the market in the near future. Ireland-based Ardagh Group announced plans to close its Milford beer bottling plant and lay off more than 200 workers. Round Hill Investments recently acquired New England Confectionary Company (maker of NECCO wafers) for $17.33 million in a bankruptcy auction. The candy maker already downsized operations at its 829,000-square-foot Revere facility by nearly 150,000 square feet in the third quarter of last year. The new owners are looking to revive the brand, but operations are only slated to continue through the fall.
• Coworking and incubating trends have made their way into Greater Boston’s manufacturing industry. CI Works, a manufacturing business incubator based in Amesbury, is opening an additional location at IndusPAD (the former Polartec plant) in Lawrence. The 90,000 square-foot secondary location will allow CI Works to house up to 60 additional companies. Given the growth in hi-tech and other manufacturing operations, the need for this type of collaborative space could expand in the future.
• The region’s bustling life science industry continues to drive manufacturing activity in Greater Boston. Sanofi Genzyme is expanding its Framingham footprint, with plans to build a new 72,000-square-foot bio-manufacturing facility. In the first quarter, King Street Properties purchased the former headquarters of the MetroWest Daily News on New York Avenue in Framingham, with plans to renovate the property into a 107,350-square-foot multi-tenant life science facility. Replimune recently leased 63,000 square feet of manufacturing and translational science lab space in this building. Finally, Waters Corp., a scientific equipment maker, plans to add 135,000 square feet to its Taunton facility, which will be operational by 2022.
• A handful of transactions took place in the second quarter. Casey & Hayes acquired the 107,869-square-foot 40 Murphy Drive in Avon for $7.4 million or $69/SF, while Invesco Advisors picked up a handful of older industrial/manufacturing assets in Cambridge from the Davis Companies. The Quad, which includes 75 Moulton Street, 10 Wilson Avenue, 40 Smith Place and 75 Smith Pace, is being marketed as transitioning life science campus. Given that the new owner is targeting biotech companies, the portfolio traded for $73 million or $364/SF.
VACANCY & NET ABSORPTION
NOTABLE TRANSACTIONS
ASKING RENT
Vacancy and Net Absorption
2013201420142014201420152015201520152016201620162016201720172017
Asking Rent
20172017201720182018
$0
$2
$4
$6
$8
$10
$12
2014 2015 2016 2017
0%
2%
4%
6%
8%
10%
-800
-600
-400
-200
0
200
400
600
2013 2014 2015 2016 2017 2018
SF (0
00s)
Net Absorption Vacancy
Route 495 Northeast Framingham-Natick Route 495 West Route 128 North Urban Core
MAN
UFACTURING
Q2TOTAL
INVENTORY (SF)
TOTAL VACANT
(SF)
TOTAL VACANCY
RATE
Q2NET
ABSORPTION (SF)
YTD NET
ABSORPTION (SF)
ASKING RENT ($/SF)
TOTAL 34,846,731 2,389,547 6.9% 49,236 6,702 $9.38
Asking Rent ($/SF)$9.38
e feet. Rates continue their general CI Works, Replimune and New England
secutive quarter, and sitting 6.5% above
close its Milford beer bottling plant esult in the closure of the firm's
quarter of last year. While the firm is
ness incubator based in Amesbury, is ll allow CI Works to house up to 60
ace could expand in the future.
ding its Framingham footprint, with plans to ormer headquarters of the MetroWest Daily
acility. Replimune recently leased uipment maker, plans to add 135,000 square
st notably, Pfizer is constructing a uare foot facility.
on for $7.4 million or $69/SF, while hich includes 75 Moulton Street, 10 r is targeting biotech companies, the
110K SF85K SF60K SF10K SF 35K SF
Notable Transactions
US ElectricalServices
ITG International
New EnglandSpas
Replimune
CI Works
Vacancy and Net Absorption
2013201420142014201420152015201520152016201620162016201720172017
Asking Rent
20172017201720182018
$0
$2
$4
$6
$8
$10
$12
2014 2015 2016 2017
0%
2%
4%
6%
8%
10%
-800
-600
-400
-200
0
200
400
600
2013 2014 2015 2016 2017 2018
SF (0
00s)
Net Absorption Vacancy
7
CAPITAL MARKETS STATISTICS
SALES VOLUME ($)
NUMBER OF TRANSACTIONS
TOTAL SF
MEDIAN $/SF
MEDIAN CAP RATE
$477,935,956 111 3,955,082 $95 6.7%
INDUSTRIAL SALESQ1 2017 Q2 2017 Q3 2017 Q4 2017 TOTAL
SALES VOLUME ($) $453,379,723 $385,172,081 $433,947,886 $374,173,554 $1,646,673,244
# OF TRANSACTIONS 76 78 82 60 296
TOTAL SF 4,779,432 6,394,205 4,045,511 4,243,774 19,462,922
MEDIAN $/SF $75 $59 $103 $86 $90
TOP Q2 / INVESTMENT SALES
Former Reebok HQCanton
Buyer Spear Street Capital
Price $88,000,000
Total SF 680,000
Price/SF $129
Cap Rate -
The Xchange at BedfordBedford
BuyerJumbo Capital Management LLC
Price $107,750,000
Total SF 482,662
Price/SF $223
Cap Rate 6.50%
100 Upland DriveNorwood
BuyerAlexandria Real Estate Equities
Price $87,250,000
Total SF 200,430
Price/SF $435
Cap Rate 7.30%
560 West Street Mansfield
Buyer The Seyon Group
Price $38,500,000
Total SF 350,469
Price/SF $110
Cap Rate -
TRENDS• Industrial is the new darling of commercial real estate investors both locally and nationally.
Record-low vacancies and skyrocketing rents have led to unprecedented levels of activity in Boston’s industrial market in recent years. While sales volume in other asset types has been waning recently, industrial transactions have held steady. More than $900 million in industrial assets changed hands during the first half of 2018, which is on a par with peak-2016 levels as well as last year’s levels. Pricing continues to climb as well, with the median price per square foot reaching $95 in the second quarter. This represents a 5.8% increase from year-ago levels and a 44% increase over the last five years.
• Several industrial portfolios traded during the second quarter, with private buyers accounting for 58% of total transaction volume. Jumbo Capital Management purchased the 8-building Xchange at Bedford, anchored by iRobot, for $107.8 million or $223/SF. Rafi Properties acquired the Ames Business Park in Somerville, which included five properties and a small parcel of land, for $88 million or $344/SF. SIP Trust sold a five-property portfolio on Stergis Way in Dedham to the Nordblom Company for $12.6 million or $133/SF.
• Flex/R&D properties accounted for more than 60% of the total industrial sales volume in the second quarter. The transactions were evenly dispersed throughout the region, with the sale of the Xchange at Bedford and the Ames Business Park accounting for a large share of this activity. Pricing remains frothy for Flex/R&D properties in Greater Boston, with the median cap rates declining to 6.9% in the first half of 2018. Comparatively, median cap rates for this asset class were close to 10% nearly a decade ago.
Property 100 Upland Drive Property 560 West StreetCity/Submarket Norwood City/Submarket MansfieldBuyer Alexandria Real Estate Equities Buyer The Seyon GroupPrice 87,250,000$ Price $38,500,000Total SF 200,430 Total SF 350,469 Price/SF $435 Price/SF $110Cap Rate 7.30% Cap Rate -
Sales Volume
Median Price/SF
2008
2008
2008
2008
2009
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
$0
$100
$200
$300
$400
$500
$600
$700
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018$
(Mls
)
$81
$95
$25
$35
$45
$55
$65
$75
$85
$95
$105
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SALES VOLUME
MEDIAN PRICE/SF
Property 100 Upland Drive Property 560 West StreetCity/Submarket Norwood City/Submarket MansfieldBuyer Alexandria Real Estate Equities Buyer The Seyon GroupPrice 87,250,000$ Price $38,500,000Total SF 200,430 Total SF 350,469 Price/SF $435 Price/SF $110Cap Rate 7.30% Cap Rate -
Sales Volume
Median Price/SF
2008
2008
2008
2008
2009
2009
2009
2009
2010
2010
2010
2010
2011
2011
2011
$0
$100
$200
$300
$400
$500
$600
$700
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ (M
ls)
$81
$95
$25
$35
$45
$55
$65
$75
$85
$95
$105
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ames Business ParkSomerville
Buyer Rafi Properties
Price $88,000,000
Total SF 255,795
Price/SF $344
Cap Rate -
TOTAL INVENTORY
(SF)
UNDER CONSTRUCTION
(SF)
DIRECT VACANT
(SF)
SUBLEASE VACANT
(SF)
TOTAL VACANCY
RATE
Q2 NET
ABSORPTION (SF)
YTD NET
ABSORPTION (SF)
ASKING RENT NNN
($/SF)
Urban Core 18,652,206 170,000 1,186,247 - 6.4% (6,337) 27,157 $15.85
Framingham-Natick 3,206,322 - 180,654 - 5.6% 2,335 (13,126) $8.20
Route 128 North 28,835,002 - 1,658,282 121,228 6.2% 2,036 14,600 $9.54
Route 128 Northwest 3,909,761 - 189,605 29,776 5.6% (3,788) (8,115) $19.42
Route 128 South 39,594,031 300,000 2,953,669 25,740 7.5% (73,806) (61,929) $6.94
Route 128 West 4,350,925 - 264,068 - 6.1% 15,000 (44,106) $21.79
ROUTE 128 TOTAL 76,689,719 300,000 5,065,624 176,744 6.8% (60,558) (99,550) $9.03
Route 495 North 20,972,963 383,000 2,393,684 47,376 11.6% 69,948 147,917 $9.62
Route 495 Northeast 13,538,580 225,000 1,479,552 104,614 11.7% 91,415 110,741 $8.33
Route 495 South 32,556,010 959,500 2,385,749 6,100 7.3% (38,159) 331,880 $6.24
Route 495 West 15,173,226 220,106 523,243 74,343 3.9% 81,597 251,618 $8.70
ROUTE 495 TOTAL 82,240,779 1,787,606 6,782,228 232,433 8.5% 204,801 842,156 $8.08
MARKET TOTAL 180,789,026 2,257,606 13,214,753 409,177 7.5% 140,241 756,637 $9.14
M E T R O B O S T O NQ2 2018
INDUSTRIAL RECAP
LIZ BERTHELETTE | Director of Research 617.457.3306 | [email protected]
METHODOLOGY
SOURCE: Co-Star, NAI Hunneman Commercial Company. PREPARED: June 2018.
DISCLAIMER: The above data is from sources deemed to be generally reliable, but no warranty is made as to the accuracy of the data nor its usefulness for any particular purpose.
Average Rental Rates are asking rents on direct space. Vacant space includes both direct and sublease space.