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495 WEST
495 NORTH
495 NORTHEAST
495 SOUTH
128 SOUTH
128 NORTHWEST
128 NORTH
FRAMINGHAM/NATICK
INNERSUBURBS
128 WEST
SOUTH OFFICE 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
$14
$16
$18
$20
$22
2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3
Route 128 South Route 495 South
‐ The South markets have absorbed more than 480,000 square feet of office space since Q4 2015; allowing vacancies to end the third quarter 330 basis points below year‐ago levels.
‐ Tenant activity remains particularly strong in areas along Route 128, including Dedham and Westwood, as firms look for value, amenities and public transit access.
‐ Southshore Charter School took occupancy of 22,458 square feet at 700 Longwater Drive in Norwell, and Healthcare Financial relocated to 22,541 square feet at 2 Heritage in Quincy.
‐ RREEFF purchased 40 Allied Drive, a 64,127‐square‐foot medical office building, in Dedham for $34 million or $530/SF from Shields Health Care, while Ocean Spray sold their 90,000‐square foot headquarters in Lakeville to Fairway Equities for $40 million or $444/SF.
ArrowsDirect Vacancy Sublease Vacancy 12‐month Absorption Leasing ActivityAsking RentDown Flat Up Down Up
Seaport Total Inventory Under Construction Direct Vacant Sublease VacantRoute 128 Sout 13,870,355 0 1,572,233 63,361Route 495 Sout 2,894,377 0 407,977 17,301Total 16,764,732 0 1,980,210 80,662
Notable TransactionsTenant Address City SizePartylite Gift 600 Cordwainer DriveNorwell 25,000 Sentient Jet 3 Batterymarch Park Quincy 22,080 Topco Associate3 Batterymarch Park Quincy 17,940 Altra Industrial 300 Granite Street Braintree 15,200 Compass Health400 Crown Colony Dri Quincy 3,025 *Renewal
Featured Deal
Vacancy and Net Absorption
The Union Point redevelopment, formerly Southfield, in Weymouth landed its first major commercial tenant with Prodrive Technologies. The Dutch robotics company has agreed to lease 300,000 square feet for its U.S. headquarters — slated to open at the end of 2017. Prodrive joins Deja Vu Concepts, a software startup that leased 30,000 square feet of office space at the former Naval Air Base earlier this year.
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
-200,000
-100,000
0
100,000
200,000
300,000
400,000
2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3
Net Absorption Vacancy
VACANCY AND NET ABSORPTIONCLASS A & B RENTS
TENANT ADDRESS CITY SIZE
Partylite Gift 600 Cordwainer Drive Norwell 25,000
Sentient Jet 3 Batterymarch Park Quincy 22,080
Topco Associates* 3 Batterymarch Park Quincy 17,940
Altra Industrial Motion* 300 Granite Street Braintree 15,200
Compass Health Brands 400 Crown Colony Drive Quincy 3,025
*Renewal
NOTABLE TRANSACTIONS
TOTAL INVENTORY
(SF)
UNDER CONSTRUCTION
(SF)
DIRECT VACANT
(SF)
SUBLEASE VACANT
(SF)
TOTAL VACANCY
RATE
Q3 NET
ABSORPTION (SF)
YTD NET
ABSORPTION (SF)
ASKING RENT ($/SF)
Route 128 South 13,870,355 0 1,572,233 63,361 11.8% 114,010 129,860 $20.59
Route 495 South 2,894,377 0 407,977 17,301 14.7% 36,286 31,313 $18.81
TOTAL 16,764,732 0 1,980,210 80,662 12.3% 150,296 161,173 $20.23
FEATURED DEAL
300,000 SFUNION POINT, SOUTH WEYMOUTH
The Union Point redevelopment, formerly Southfield, in South Weymouth landed its first major commercial tenant with Prodrive Technologies. The Dutch robotics company has agreed to lease 300,000 square feet for its U.S. headquarters. Prodrive will join Deja Vu Concepts at the former Naval Air Base.
STATISTICS
SUBMARKET TRENDS
• The South markets have absorbed more than 480,000
square feet of office space since Q4 2015; allowing
vacancies to end the third quarter 330 basis points
below year-ago levels.
• Tenant activity remains particularly strong in areas
along Route 128, including Dedham and Westwood, as
firms look for value, amenities and public transit access.
• Southshore Charter School took occupancy of 22,458
square feet at 700 Longwater Drive in Norwell, and
Healthcare Financial relocated to 22,541 square feet at
2 Heritage in Quincy.
• RREEFF purchased 40 Allied Drive, a 64,127-square-
foot medical office building, in Dedham for $34 million
or $530/SF from Shields Health Care, while Ocean
Spray sold their 90,000-square foot headquarters in
Lakeville to Fairway Equities for $40 million or $444/SF.
SOUTH OFFICE MARKET