q3 q3…q3 2015 q4 2015 q1 2016 q2 2016 q3 2016 q4 2016 q1 2017 q2 2017 q3 2017 nai hunneman...
TRANSCRIPT
495 WEST
495 NORTH
495 NORTHEAST
495 SOUTH
128 NORTHWEST
128 NORTH
FRAMINGHAM/NATICK
128 WEST
INNERSUBURBS
128 SOUTH
128 WEST OFFICE M
ARKETASKING 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
303 Congress Street | Boston, MA 02210 | 617.457.3400
www.NAIHunneman.com
VACANCY AND NET ABSORPTIONCLASS A & B RENTS
TENANT ADDRESS CITY SIZE
Aetna 93 Worcester Street Wellesley 80,300
National Grid* 404 Wyman Street Waltham 68,145
Steward Health Care 89 A Street Needham 52,079
Clearview Healthcare Partners 275 Washington Street Newton 37,888
CICBR 1601 Trapelo Road Waltham 32,000
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)
Class A 13,412,157 515,000 1,534,882 253,788 13.3% 255,284 362,531 $41.12
Class B 10,035,807 26,100 1,013,293 25,834 10.4% 28,007 85,573 $34.33
TOTAL 23,447,964 541,100 2,548,175 279,622 12.1% 283,291 448,104 $38.42
FEATURED DEAL
39,499 SFWAVERLEY OAKS PARK, WALTHAM
NAI Hunneman recently represented the landlord, Duffy Properties, in a lease expansion at Waverley Oaks Park. In the first quarter, Zoom Info, renewed and expanded to 30,000 square feet at nearby 307 Waverley Oaks Road. Most recently, Zoom Info was acquired by a private equity firm in Boston and leased another 9,499 square feet of space at 309 Waverley Oaks Road.
STATISTICS
128 WEST OFFICE MARKET
SUBMARKET TRENDS
• Construction continues to put upward pressure on vacancies
in the Route 128 West office market. Delivery of vacant Two
Wells Avenue in Newton and Post 200 in Waltham pushed
rates up to 12.1% in the third quarter.
• That said, this new product is driving asking rents up in this
submarket. Class A asking rents in Route 128 West have
now surpassed $41 per square foot.
• Shire is subleasing 104,000 square feet at 235 Wyman
Street in Waltham and Constant Contact is expected to
relocate to Burlington from 1601 Trapelo Road also in
Waltham.
• Steward Health Care will join SharkNinja at the newly-
constructed 89 A Street in Needham, leasing 52,000 square
feet in the third quarter. Aetna signed a lease expansion in
Wellesley this quarter as well.
• In August, NBCUniversal finalized its purchase of the
165,000-square-foot 189 B Street in Needham for its
regional headquarters; paying $41.7MM or $124/SF. The
building is slated to deliver in early 2019.
2017 2017Q3 Q3
ArrowsDirect Vacancy Sublease Vacancy 12-month Absorption Leasing ActivityUp Down Up Down
Total Inventory Under Construction Direct VacantClass A 13,412,157 515,000 1,534,882Class B 10,035,807 26,100 1,013,293Total 23,447,964 541,100 2,548,175
Notable TransactionsTenant/Buyer Address City Size/ $SFAetna 93 Worcester Street Wellesley 80,300 National Grid 404 Wyman Street Waltham 68,145 Steward Health Care 89 A Street Needham 52,079 Clearview Healthcare Partners 275 Washington StreetNewton 37,888 CICBR 1601 Trapelo Road Waltham 32,000 *Renewal
Featured Deal
Vacancy and Net Absorption
Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017
NAI Hunneman recently represented the landlord, Duffy Properties, in a lease expansion at Waverley Oaks Park. In the first quarter, Zoom Info, renewed and expanded to 30,000 square feet at nearby 307 Waverley Oaks Road. Most recently, Zoom Info was acquired by a private equity firm in Boston and leased another 9,499 square feet of space at 309 Waverley Oaks Road.
0%
2%
4%
6%
8%
10%
12%
14%
-300,000
-200,000
-100,000
0
100,000
200,000
300,000
400,000
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Net Absorption Vacancy
Class A&B Rents
Submarket Trends
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Class A Class B
- Construction continues to put upward pressure on vacancies in the Route 128 West office market. Delivery of vacant Two Wells Avenue in Newton and Post 200 in Waltham pushed rates up to 12.1% in the third quarter.
- That said, this new product is driving asking rents up in this submarket. Class A asking rents in Route 128 West have now surpassed $41 per square foot.
- Shire is subleasing 104,000 square feet at 235 Wyman Street in Waltham and Constant Contact is expected to relocate to Burlington from 1601 Trapelo Road also in Waltham.
- Steward Health Care will join SharkNinja at the newly-constructed 89 A Street in Needham, leasing 52,000 square feet in the third quarter. Aetna signed a lease expansion in Wellesley this quarter as well.
- In August, NBCUniversal finalized its purchase of the 165,000-square-foot 189 B Street in Needham for its regional headquarters; paying $41.7MM or $124/SF. The building is slated to deliver in early 2019.
*Sublease