495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 SOUTH

128 WEST

NO

RTH INDUSTRIAL MARKET

Q32016

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

Net Absorption Vacancy

$0

$2

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$6

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$12

$14

$16

$18

$20

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

Route 128 North Route 128 Northwest Route 495 North Route 495 Northeast

‐ Four consecutive quarters of positive absorption, totaling almost two million square feet, pushed vacancies down by 280 basis points over the past year.

‐ After purchasing Progressive Foods in April, Monogram Foods expanded into 62,000 square feet at 330 Ballardvale in Wilmingtion.

‐ Textron Systems recently announced plans to downsize its manufacturing and sales operations in Wilmington; laying off 200 employees.

‐ 3D Systems vacated close to 60,000 squar feet at 19 Connector Road in Andover.

‐ Colony Capital sold the 450,000‐square‐foot 3 Distribution Center Circle in Littleton. Gramercy Property Trust purchased the property, which is fully‐leased to Potpourri, for $88.33/SF at a 6.8% cap rate. 

‐ Owners of the Polartec HQ and factory in Methuen have put the properties on the market — the two buildings total 560,000 SF — wtih an early 2017 occupancy planned.

ArrowsDirect Vacancy Sublease Vacancy 12‐month Absorption Leasing ActivityAsking RentUp Flat Down Down Up

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantRoute 128 North 24,362,766 0 1,099,179 34,433Route 128 Northwest 3,713,221 0 419,049 8,198Route 495 North 19,250,414 0 2,068,674 263,490Route 495 Northeast 11,781,485 175,000 1,689,649 59,600Total 59,107,886 175,000 5,276,551 365,721

Notable TransactionsTenant Address City SizeHighRes Biosolutions 102 Cherry Hill Drive Beverly 80,000           Unigraphics, Inc. 110 Commerce Way Woburn 70,054           Locus Robotics 301 Ballardvale StreetWilmington 45,000           Desktop Metal 63 Third Avenue Burlington 39,500           JSI Logistics* 35 High Street Billerica 35,065           *Renewal

Featured Deal

Vacancy and Net Absorption

NAI Hunneman assisted Desktop Metal, a 3Dprinting company, in relocating its corporate headquarters from Lexington to Burlington. After receiving $52 million in a Series B round in July, the firm leased 39,500 square feet at 63 Third Avenue — representing a sizeable increase from their current location on Hartwell Avenue.

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2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-600,000

-400,000

-200,000

0

200,000

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800,000

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

HighRes Biosolutions 102 Cherry Hill Drive Beverly 80,000

Unigraphics, Inc.* 110 Commerce Way Woburn 70,054

Locus Robotics 301 Ballardvale Street Wilmington 45,000

Desktop Metal 63 Third Avenue Burlington 39,500

JSI Logistic* 35 High Street Billerica 35,065

*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 North 24,362,766 0 1,099,179 34,433 4.7% 442,420 875,963 $8.44

Route 128 Northwest 3,713,221 0 419,049 8,198 11.5% 8,101 70,359 $13.76

Route 495 North 19,250,414 0 2,068,674 263,490 12.1% 162,116 190,821 $8.91

Route 495 Northeast 11,781,485 175,000 1,689,649 59,600 14.8% (91,380) 177,055 $9.66

TOTAL 59,107,886 175,000 5,276,551 365,721 9.5% 521,257 1,314,198 $9.44

FEATURED DEAL

39,500 SF63 THIRD AVENUE, BURLINGTON

NAI Hunneman assisted Desktop Metal, a 3D printing company, in relocating its corporate headquarters to Burlington. After receiving $52 million in a Series B round in July, the firm leased 39,500 square feet at 63 Third Avenue — representing a sizeable increase from their current location on Hartwell Avenue.

STATISTICS

SUBMARKET TRENDS

• Four consecutive quarters of positive absorption,

totaling almost two million square feet pushed

vacancies down by 280 basis points over the past year.

• After purchasing Progressive Foods in April, Monogram

Foods expanded into 62,000 square feet at 330

Ballardvale in Wilmingtion.

• Textron Systems recently announced plans to downsize

its manufacturing and sales operations in Wilmington;

laying off 200 employees.

• 3D Systems vacated close to 60,000 square feet at

19 Connector Road in Andover.

• Colony Capital sold the 450,000-square foot 3

Distribution Center Circle in Littleton to Gramercy

Property Trust for $88.33/SF at a 6.8% cap rate.

The property is fully-leased to Potpourri.

NORTH INDUSTRIAL MARKET

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

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantClass A 12,017,757 1,263,595 685,193 295,287Class B 9,487,185 127,000 859,456 112,799Total 21,504,942 1,390,595 1,544,649 408,086

Notable TransactionsTenant Address City SizeTesaro 1000 Winter Street Waltham 122,000 Trinity Partners 230 Third Avenue Waltham 45,000 Dun & Bradstre 610 Lincoln Street Waltham 30,000 Yardi 400 Fifth Avenue Waltham 26,020 Bridge Energy 75-95 Wells Avenue Newton 7,372 *Renewal

Featured Deal

Vacancy and Net Absorption

NAI Hunneman assisted Yardi, a real estate software firm, in relocating its operations to 400 Fifth Avenue in Waltham. The 26,020-square-foot lease represents a significant expansion from Yardi's previous office at 307 Waverley Oaks.

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2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

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

Net Absorption Vacancy