North

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STATISTICS

NORTH OFFICE MARKET

495 NORTH

128 NORTH

128 NORTHWEST INNER SUBURBS 128 WEST

495 WEST

201 7

7 201

495 NORTHEAST

Q2 Q2

NORTH OFFICE MARKET

FRAMINGHAM/ NATICK

128 SOUTH

495 SOUTH

TOTAL INVENTORY (SF)

UNDER CONSTRUCTION (SF)

DIRECT VACANT (SF)

SUBLEASE VACANT (SF)

TOTAL VACANCY RATE

Q2 YTD NET NET ABSORPTION (SF) ABSORPTION (SF)

ASKING RENT ($/SF)

Route 128 North

14,201,688

145,000

1,315,809

82,431

9.8%

(22,836)

(45,167)

$22.32

Route 128 Northwest

13,603,225

327,000

1,658,687

196,586

13.6%

(22,464)

2,248

$30.90

Route 495 North

13,184,076

-

2,655,869

140,929

21.2%

(25,380)

42,930

$18.76

7,447,943

-

1,492,452

48,436,932

472,000

7,122,817

Route 495 Northeast TOTAL

Arrows 4,142 Direct Vacancy 424,088 Down

20.1% 40,047 Sublease Vacancy 15.6% (30,633) Up

87,093 $18.60 12-month Absorption Leasing Activity 87,104 $22.21 Up Down

Submarket Total Inventory Under Construction Direct Vacant Arrows 14,201,688 145,000 1,315,809 Route 128 North FEATURED DEALRent Direct Vacancy Sublease Vacancy 12-month Absorption Leasing ActivityAsking 327,000 1,658,687 Route 128 Northwest Down Up Down13,603,225 Down Up 13,184,076 0 2,655,869 Route 495 North BRICKSTONE SQUARE, ANDOVER 7,447,943 0 1,492,452 Route 495 Northeast Seaport Total Inventory Under Construction Direct Vacant Sublease Vacant 472,000 7,122,817 Class A totaling 970,00012,017,757 1,263,595 685,193 295,287 Three Class ATotal buildings, square feet, at 48,436,932

SUBMARKET TRENDS

970,000 SF

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Vacancies in Route 128 North are the lowest among the northern markets, at 9.8% and rents are highest in Route 128 Northwest at roughly $31 per square foot. Average lease rates in the north markets inched up during the second quarter of 2017, with the most growth occurring along the Route 495 belt. Reportedly, an owner-user is close to inking a deal for Kronos’ former headquarters in Chelmsford. This transaction would remove a significant availability from the Route 495 North office market. Redevelopments at 54 Middlesex Turnpike and Insulet’s newly acquired 100 Nagog Park have reduced the north market’s office inventory by roughly 236,000 square feet. Aspect Software committed to 30,000 square feet at 5 Technology Park Drive in Westford while Sonus Networks renewed its 97,500-square-foot lease at 4 Technology Net Absorption VacancyDrive also in Westford.

Class B 9,487,185 Brickstone Square in Andover were recapitalized in the second Total Transactions 21,504,942 Notable quarter. Oaktree Capital Management sold its stake in the Tenant/Buyer Address assets to Contrarian Capital Management for $90MM or Notable Transactions Sonus Networks* 4 Technology Park Drive $92.29 per square foot. KS Partners retained its ownership Tenant Address City Mitre Corporation 201 Burlington Road Tesaro 1000 Winter Street Waltham position in thisIpswitch transaction. 15 Wayside Road Trinity Partners 230 Third Avenue

Waltham

Compliance Technologie 200 Brickstone Square Dun & Bradstre 610 Lincoln Street Waltham HUB International400 Fifth 300 BallardvaleWaltham Street Yardi Avenue *Renewal Bridge Energy 75-95 Wells Avenue Newton *Renewal

TENANT

ADDRESS

127,000 1,390,595

Waverley Oaks.

Wilmington

SIZE

97,500 43,535 33,165 29,000 19,868

*Renewal

Class A&B Rents

Vacancy and Net Absorption Vacancy and Net Absorption

CLASS A & B RENTS $35

VACANCY AND NET ABSORPTION 20.0% 12.0%

500,000 350,000 400,000 300,000

$30 $25

250,000 300,000

10.0% 16.0%

200,000 200,000

8.0%

12.0%

150,000 100,000

$20

100,000

6.0%

0

8.0%

50,000

-100,000

$15

DIRECT VACANCY

SUBLEASE VACANCY

12-MONTH ABSORPTION

LEASING ACTIVITY

ASKING RENT

STATISTICS

OVER THE LAST 12 MONTHS

-200,000

www.NAIHunneman.com

4.0%

0

4.0%

-50,000

2.0%

-300,000

$10 Q4 2014

Q1 2015

Route 128 North

303 Congress Street | Boston, MA 02210 | 617.457.3400

Size/$SF 97,500 43,535 33,165 29,000 19,868

NOTABLE TRANSACTIONS 7,372 CITY

300 Ballardvale Street

112,799 408,086

City Westford Size Bedford 122,000 Burlington 45,000 Andover 30,000 Wilimington26,020

Featured Deal Sonus Networks* Featured Deal 4 Technology Park Drive Westford Three Class A buildings, totaling 970,000 square feet, at NAI Hunneman assisted Yardi, a real estate Brickstone Square in Andover were recapilized in the second Mitre Corporation 201 Burlington Road Bedford software firm, inCapital relocating its operations quarter. Oaktree Management soldtoits stake in the 400 to Fifth Avenue inCapital Waltham. The 26,020-for $90MM or assets Contrarian Management Ipswitch 15 Wayside Road a significant Burlington square-foot lease represents $92.29 per square foot. KS Partners retained its ownership expansion from Yardi's previous office at 307 position in this200 transaction. Compliance Technologies* Brickstone Square Andover

HUB International

859,456 1,544,649

Q2 2015

Q3 2015

Q4 2015

Route 128 Northwest

Q1 2016

Q2 2016

Q3 2016

Route 495 North

Q4 2016

Q1 2017

Q2 2017

Route 495 Northeast

Submarket Trends - Vacancies in Route 128 North are the lowest among the northern markets, at 9.8% and rents are highest in Route 128 Northwest at roughly $31 per square foot.

-100,000

-400,000 -150,000

Q42014 Q4 Q1 2015Q2Q1 2015 Q3 Q2 Q4 Q3 Q1 Q4 2015 Q3Q1 2015Q2 Q4 2016 2016 Q2Q1 2016 Q2 Q3 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 Net Absorption

Net Absorption

0.0% 0.0%

Vacancy

Vacancy

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