128 West

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128 WEST OFFICE MARKET

495 NORTH

Q1 Q1

128 NORTH

128 NORTHWEST INNER SUBURBS

128 WEST 495 WEST FRAMINGHAM/ NATICK

128 SOUTH

495 SOUTH

201 8

8 201

495 NORTHEAST

128 WEST OFFICE MARKET

STATISTICS TOTAL INVENTORY (SF)

UNDER CONSTRUCTION (SF)

DIRECT VACANT (SF)

SUBLEASE VACANT (SF)

351,317

1,356,910

166,954

11.6%

208,488

208,488

$40.47

Class B

10,201,787

25,800

1,117,052

53,528

11.5%

(39,598)

(39,598)

$34.20

TOTAL

23,391,168

377,117

2,473,962

220,482

11.5%

168,890

168,890

$37.64

FEATURED DEAL

SUBMARKET TRENDS •

•

32,463 SF

The Route 128 West office market absorbed close to 170,000 square feet in the first quarter of 2018. As a result, vacancies declined by 100 basis points from the end of 2017.

60 WELLS AVENUE, NEWTON Arrows Direct Vacancy Sublease Vacancy In one of the largest transactionsDown of the quarter, Up

Notable Transactions CityPlace in Waltham, Alkermes recently confirmed its plans for growth. The 220,482 11.5% Tenant/Buyer drugmaker is planning to lease more than 200,000 square feet of new office space Cyber-Ark Software Eden Red Notable Transactions in Waltham; expanding its footprint to nearly 400,000 square feet by 2020.

•

•

Leasing activity among some of the area’s newest buildings is gaining momentum. Reportedly, Deciphera Pharmaceuticals will anchor the recently completed 200 Post in Waltham and Cambridge Savings Bank is rumored to be taking down space at 81 Wyman. Investors remain active in the Route 128 West market. Albany Road Real Estate In the first quarter, Partners purchased the University Office Park in Waltham for $47.5 million or $163/SF, while Capasso Realty Corporation acquired 29 Crafts Street in Newton for $13.9 million or $202/SF.

Markem Imaje Cyber-Ark SummitSoftware Educational Group Learning Corp

Learning Corp. 15K SF

25K SF

35K SF

45K SF

VACANCY AND NET ABSORPTION 14%

$40

12%

$35

200

10%

100

8%

SF (000s)

6%

0 -100

$10

-200

$5

-300

$0 2014

2015

2016 Class A

Submarket Trends

www.NAIHunneman.com

$37.64

300

Class B

303 Congress Street | Boston, MA 02210 | 617.457.3400

168,890

400

$15

OVER THE LAST 12 MONTHS

168,890

Address City Size/ $SF 60 Wells Avenue Newton 32,463 265 Wi nter Street Waltham NOTABLE TRANSACTIONS 16,837 65 Grove Street Watertown 14,405 59-85 Chapel Street Newton 11,000 59-85 Chapel Street Newton 7,500

Eden Red

Vacancy and Net Absorption

$20

STATISTICS

Asking Rent Up

Featured Deal In oneMarkem of the largest transactions of the quarter, Cyber-Ark Imaje Software extended and expanded its lease at 60 Wells Avenue in Newton. The firm signed a two-year extension on 21,644 square Summit feet and then expanded by another 10,819 square feet. Educational Group

5K SF

$25

ASKING RENT

12-month Absorption Up

Cyber-Ark Software extended and expanded its TotalThe Inventory Under Construction Di rect Vacant lease at 60 Wells Avenue in Newton. firm Class A 13,189,381 351,317 1,356,910 signed aVacancy two-yearRate extension on Absorpti 21,644 square Sublease Vacant Class Total Q1 Net on YTD Net Absorpti on25,800 Asking1,117,052 Rent B 10,201,787 feet and then expanded A handful of build-to-suit projects are getting ready to kick off. Following Simpson, Total 23,391,168 377,117 2,473,962 166,954 11.6% by another 10,819 208,488 208,488 $40.47 Gumpertz & Heger’s 110,000-square-foot lease at the soon-to-be-built 20 53,528square feet. 11.5% (39,598) (39,598) $34.20

$30

12-MONTH ABSORPTION

ASKING RENT ($/SF)

13,189,381

$45

SUBLEASE VACANCY

Q1 YTD NET NET ABSORPTION (SF) ABSORPTION (SF)

Class A

CLASS A Rents & B RENTS Class A&B

DIRECT VACANCY

TOTAL VACANCY RATE

- The Route 128 West office market absorbed close to 170,000 square feet in the first quarter of 2018. As a result, vacancies declined by 100 basis points from the end of 2017. - A handful of build-to-suit projects are getting ready to kick off. Following Simpson, Gumpertz & Heger's 110,000-square-foot lease at the soon-to-be-built 20 CityPlace in Waltham, Alkermes recently confirmed its plans for growth. The drugmaker is planning to

2017

2013

Net Absorption 2013 146,136 4% 146.14 2013 86,153 2% 86.15 2013 232,712 0% 232.71 2014 2015 2016 2017 (106,374) 2018 2013 (106.37) Net Absorption 2014Vacancy 258,181 258.18 2014 (10,619) (10.62) 2014 189,675 189.68 2014 130,438 130.44 2015 64,400 64.40 303 Congress Street | Boston, MA 02210 | 617.457.3400 2015 149,814 149.81 www.NAIHunneman.com 2015 303,616 303.62 2015 (112,180) (112.18)