495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 SOUTH

128 WEST

WEST INDUSTRIAL M

ARKETQ3

2016

ASKING RENT

LEASING ACTIVITY

12-MONTH ABSORPTION

SUBLEASE VACANCY

DIRECT VACANCY

STATISTICS OVER THE LAST 12 MONTHS

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3 2016

Class A&B Rents

Submarket Trends

$0

$2

$4

$6

$8

$10

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Framingham-Natick Route 495 West

‐ With five consecutive quarters of positive absorption, vacancies in the West submarkets have fallen precipitously since mid‐2015.

‐ Since the third quarter of 2015, the Route 495 West market has absorbed 467,945 square feet of industrial space.

‐ Breweries continue to drive demand in the manufacturing market. Jack Abby's Brewery recently executied a 63,000‐square‐foot expansion at 100 Clinton Street in Framingham.

‐ As part of a two‐property portfolio, Colony Realty Partners sold the 104,834‐square‐foot 360 Cedar Hill Street in Marlborough for $11.8 million or $113/SF.

‐ Year‐over‐year asking rents increased by more than 20% in the West submarkets, with Route 495 West seeing a majority of the gains.

ArrowsDirect Vacancy Sublease Vacancy 12‐month Absorption Leasing ActivityAsking RentDown Up Up Down Up

Total Inventory Under Construction Direct Vacant Sublease VacantFramingham‐Na 2,792,182 0 235,405 40,000Route 495 West 14,217,983 0 785,234 101,614Total 17,010,165 0 1,020,639 141,614

Notable TransactionsTenant Address City SizeJack's Abby Bre 100 Clinton Street Framingham 63,000           Aspen Aerogels 30 Forbes Road Northborough 51,650           WaterSep Tech 420 Maple Street Marlborough 14,984           Middlesex Petro223 Arlington Street Framingham 10,500           1‐800‐Got‐Junk 25 Brigham Street Westborough 10,000           *Renewal

Featured Deal

Vacancy and Net Absorption

In July, Atlantic Management Corporation and Fulcrum Real Estate Partners purchased a two‐property flex/R&D portfolio (450 and 500 Donald Lynch Boulevard) from Nordblom Company for $11.5 million or $94.34/SF at a 7% cap rate.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Net Absorption Vacancy

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Jack's Abby Brewing 100 Clinton Street Framingham 63,000

Aspen Aerogels* 30 Forbes Road Northborough 51,650

WaterSep Technologies 420 Maple Street Marlborough 14,984

Middlesex Petroleum Distributors 223 Arlington Street Framingham 10,500

1-800-Got-Junk* 25 Brigham Street Westborough 10,000

*Renewal

NOTABLE TRANSACTIONS

TOTAL INVENTORY

(SF)

UNDER CONSTRUCTION

(SF)

DIRECT VACANT

(SF)

SUBLEASE VACANT

(SF)

TOTAL VACANCY

RATE

Q3 NET

ABSORPTION (SF)

YTD NET

ABSORPTION (SF)

ASKING RENT ($/SF)

Framingham-Natick 2,792,182 0 235,405 40,000 9.9% (22,159) 13,486 $6.98

Route 495 West 14,217,983 0 785,234 101,614 6.2% 100,963 257,744 $9.34

TOTAL 17,010,165 0 1,020,639 141,614 6.8% 78,804 271,230 $8.79

FEATURED DEAL

121,899 SFDONALD LYNCH BLVD, MARLBOROUGH

In July, Atlantic Management Corporation and Fulcrum Real Estate Partners purchased a two-property flex/R&D portfolio (450 and 500 Donald Lynch Boulevard) from Nordblom Company for $11.5 million or $94.34/SF at a 7% cap rate.

STATISTICS

SUBMARKET TRENDS

• With five consecutive quarters of positive absorption,

vacancies in the West submarkets have fallen

precipitously since mid-2015.

• Since Q3 of 2015, the Route 495 West market has

absorbed 467,945 square feet of industrial space.

• Breweries continue to drive demand in the

manufacturing market. Jack Abby’s Brewing recently

executed a 63,000-square-foot expansion at 100

Clinton Street in Framingham.

• As part of a two-property portfolio, Colony Realty

Partners sold the 104,834-square-foot 360 Cedar Hill

Street in Marlborough for $11.8 million or $113/SF.

• Year-over-year asking rents increased by more than

20% in the West submarkets, with Route 495 West

seeing a majority of the gains.

WEST INDUSTRIAL MARKET