128 WEST OFFICE MARKET

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6 201

495 NORTHEAST

128 WEST OFFICE MARKET

495 NORTH

128 NORTH

128 NORTHWEST INNER SUBURBS

128 WEST 495 WEST FRAMINGHAM/ NATICK

128 SOUTH

495 SOUTH

DIRECT VACANCY

SUBLEASE VACANCY

12-MONTH ABSORPTION

LEASING ACTIVITY

Q3

ASKING RENT

STATISTICS

OVER THE LAST 12 MONTHS

303 Congress Street | Boston, MA 02210 | 617.457.3400 www.NAIHunneman.com

201 6

Q3

128 WEST OFFICE MARKET

STATISTICS TOTAL INVENTORY (SF)

UNDER CONSTRUCTION (SF)

DIRECT VACANT (SF)

SUBLEASE VACANT (SF)

TOTAL VACANCY RATE

Q3 YTD NET NET ABSORPTION (SF) ABSORPTION (SF)

ASKING RENT ($/SF)

Class A

12,017,757

1,263,595

685,193

295,287

8.2%

94,879

107,167

$36.81

Class B

9,487,185

127,000

859,456

112,799

10.2%

42,931

58,522

$32.65

TOTAL

21,504,942

1,390,595

1,544,649

408,086

9.1%

137,810

165,689

$34.49

Arrows Direct Vacancy Sublease Vacancy Down Up

SUBMARKET TRENDS

12-month Absorption Down

26,020 SF

•

While vacancies have remained elevated above 9% for the majority of the last two years, rates are well below the submarket’s 5-year average vacancy of 11.7%.

400 FIFTH AVENUE, WALTHAM

•

Construction recently wrapped up on Thermo Fisher’s new headquarters in Waltham and Clarks Shoes is expected to move into their new office early in the fourth quarter.

26,020-square-foot lease represents a significant expansion Notable Transactions from Yardi’s previous office at 307 Waverley Oaks, also Tenant Address City in Tesaro 1000 Winter Street Waltham Waltham.

•

Seaport Total Inventory Under Construction Direct Vacant Sublease Vacant Class A 12,017,757 1,263,595 685,193 295,287 NAI Hunneman assisted software firm, in Class B Yardi, a real estate9,487,185 127,000 859,456 112,799 Total 21,504,942 1,544,649 408,086 relocating its operations to 400 Fifth Avenue in Waltham. The 1,390,595

Trinity Partners 230 Third Avenue Dun & Bradstre 610 Lincoln Street Yardi 400 Fifth Avenue Bridge Energy 75-95 Wells Avenue *Renewal

Crosspoint Associates is redeveloping TripAdvisor’s former headquarters on Needham Street in Newton into a mixed-use development with offices, retail and restaurants dubbed Newton Nexus.

TENANT

Tesaro* Trinity Partners*

•

FEATURED DEALRent Leasing ActivityAsking Down Up

Currently there is 1.4 million square feet of office space under construction in Route 128 West. Once delivered, total inventory in this submarket will have increased by another 6.5%.

Dun & Bradstreet Yardi

Waltham Waltham Waltham Newton

ADDRESS

Size

122,000 45,000 30,000 26,020 NOTABLE TRANSACTIONS 7,372 CITY

Featured Deal 1000 Winter Street

Waltham

SIZE

122,000

NAI Hunneman assisted Yardi, a real estate 230 Avenueits operations to Waltham software firm, in Third relocating 400 Fifth Avenue in Waltham. The 26,020610 Lincoln Streeta significant Waltham square-foot lease represents expansion from Yardi's previous office at 307 400 Fifth Avenue Waltham Waverley Oaks.

Bridge Energy

75-95 Wells Avenue

45,000 30,000 26,020

Newton

7,372

*Renewal Vacancy and Net Absorption

Class A&B Rents

CLASS A & B RENTS

VACANCY AND NET ABSORPTION

350,000

$40

12.0%

300,000

$35

10.0%

250,000

$30

200,000

$25

150,000

$20

100,000

8.0% 6.0%

50,000

$15

4.0%

0

$10

-50,000

$5

2.0%

-100,000 0.0%

-150,000

$0 2014 Q4

2015 Q1

2015 Q2

2015 Q3 Class A

2015 Q4 Class B

Submarket Trends ‐ While vacancies have remained elevated above 9% for the  majority of the last two years, rates are well below the  submarket's 5‐year average vacancy of 11.7%.

2016 Q1

2016 Q2

2016 Q3

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 Net Absorption

Vacancy

303 Congress Street | Boston, MA 02210 | 617.457.3400 www.NAIHunneman.com