Metro Boston Real Estate Market Review | 1st ... - NAI Hunneman

Market Review 

Metro Boston Real Estate Market Review | 1st Quarter 2012 

Committed to Boston. Connected to the World. 

303 Congress Street | Boston MA 02110 | 617.457.3400 | www.NAIHunneman.com

Metro Boston Real Estate Market Review Q1/12 

Table of Contents 

I. Overall Market Conditions 

II. Boston Office Market 

III. Suburban Office Market 

IV. Industrial/Flex Market 

V. Investment Sales Market 

VI. Office Contacts 

NAI Hunneman | 303 Congress Street | Boston MA 02110 | 617.457.3400 | www.NAIHunneman.com


Office Market Conditions 

CLASS A & B OFFICE MARKET 

Office Space Direct Sublease Total Average Direct Total 

Submarket Inventory Vacant Space Vacant Space Vacant Space Rental Rates Vacancy % Vacancy % 

Financial District 41,567,385 5,869,550 208,197 6,077,747 $39 14.1% 14.6% 

North Station/North End 7,641,801 309,920 17,076 326,996 $26 4.1% 4.3% 

South Station/Ft. Point 8,396,958 1,541,630 80,234 1,621,864 $39 18.4% 19.3% 

Charlestown 3,117,826 113,707 34,064 147,771 $29 3.6% 4.7% 

Back Bay 14,340,381 642,515 122,579 765,094 $41 4.5% 5.3% 

Downtown Boston 75,064,351 8,477,322 462,150 8,939,472 $37 11.3% 11.9% 

East Cambridge 12,103,402 890,496 16,529 907,025 $52 7.4% 7.5% 

Central Cambridge 5,276,359 566,001 9,900 575,901 $32 10.7% 10.9% 

West Cambridge 2,334,630 466,504 3,992 470,496 $29 20.0% 20.2% 

Cambridge 19,714,391 1,923,001 30,421 1,953,422 $44 9.8% 9.9% 

Route 128 North 17,625,720 2,590,302 40,150 2,630,452 $21 14.7% 14.9% 

Route 128 Northwest 14,012,020 1,979,154 227,216 2,206,370 $21 14.1% 15.7% 

Route 128 West 28,602,190 3,699,530 256,855 3,956,385 $25 12.9% 13.8% 

Route 128 Southwest 5,071,627 623,184 44,791 667,975 $19 12.3% 13.2% 

Route 128 South 10,248,053 2,121,673 146,472 2,268,145 $20 20.7% 22.1% 

Route 128 Loop 75,559,610 11,013,843 715,484 11,729,327 $23 14.6% 15.5% 

I-495 North 6,802,932 1,348,854 78,142 1,426,996 $17 19.8% 21.0% 

I-495 Northwest 9,292,405 1,352,085 113,363 1,465,448 $17 14.6% 15.8% 

I-495 West 11,634,502 2,427,576 314,226 2,741,802 $16 20.9% 23.6% 

I-495 Southwest 2,003,721 506,155 0 506,155 $20 25.3% 25.3% 

I-495 South 1,509,545 249,451 0 249,451 $19 16.5% 16.5% 

I-495 Loop 31,243,105 5,884,121 505,731 6,389,852 $17 18.8% 20.5% 

Metropolitan Boston 201,581,457 27,298,287 1,713,786 29,012,073 $29.34 13.5% 14.4% 

CLASS A & B OFFICE – AVAILABLE SUBLEASE SPACE & RENTS 

Office AVAILABLE SUBLEASE SPACE SUBLEASE ASKING RENTS 

Submarket 2012 Q1 2011 Q4 2011 Q3 2011 Q2 2012 Q1 2011 Q4 2011 Q3 2011 Q2 

Downtown Boston 895,883 971,193 1,041,774 1,079,853 $21.92 $26.15 $27.87 $27.72 

Cambridge 175,687 222,181 268,294 399,309 $26.35 $25.79 $35.66 $35.58 

Route 128 Loop 1,988,543 2,112,798 2,337,090 2,036,832 $18.95 $18.56 $18.07 $18.05 

I-495 Loop 941,182 1,053,222 1,074,203 1,082,225 $15.58 $15.67 $14.80 $13.84 

Metropolitan Boston 4,001,295 4,359,394 4,721,361 4,598,219 $17.84 $18.40 $19.42 $19.36 

CLASS A & B OFFICE – CHANGES FROM PREVIOUS QUARTER & YEAR 

Office ASKING RENTS VACANCY RATES ABSORPTION 

Submarket 2012 Q1 2011 Q4 2011 Q1 2012 Q1 2011 Q4 2011 Q1 2012 Q1 2011 Q4 2011 Q1 

Downtown Boston $37.40 $37.24 $36.75 11.91% 11.50% 11.81% (214,260) 154,111 (155,396) 

Cambridge $44.10 $44.42 $39.34 9.91% 9.79% 9.91% 70,896 166,982 5,925 

Route 128 Loop $22.52 $22.20 $22.40 15.52% 15.49% 15.67% (181,193) 91,474 230,033 

I-495 Loop $17.11 $17.45 $18.44 20.45% 20.61% 18.23% (30,344) (314,639) 206,152 

Metropolitan Boston $29.33 $29.17 $28.74 14.39% 14.27% 14.07% (354,901) 97,928 286,714 

Source: CoStar, NAI Hunneman Commercial Company Prepared: December, 2011 

Disclaimer: The above data is from sources deemed to be generally reliable, but no warranty is made as to the accuracy of the data nor its usefulness for any particular purpose. 



Boston Office Market 

FEATURED PROPERTY 

CLASS A OFFICE SPACE 

Direct Sublease Total Average Direct Total 

Office Space Vacant Vacant Vacant Rental Vacancy Vacancy 

Submarket Inventory Space Space Space Rates (%) (%) 


North Station/North End 1,633,531 113,491 0 113,491 $29 6.9% 6.9% 

Seaport 2,817,663 413,596 4,497 418,093 $60 14.7% 14.8% 

Charlestown 903,771 14,513 10,089 24,602 $33 1.6% 2.7% 

201-207 South Street 

Boston,MA 

Office space in the heart of 

Boston’s leather district. 

Contact Jon Gifford 617.457.3401 

TRENDS 

• Financial Institutions are foregoing 

the reuse of low-rise tower space for 

projects that provide higher visibility 

and branding. 

• Landlords have re-gained the leverage in 

leasing negotiations. 

• B Class office product is the preferred 

segment to add value and higher exit yields. 

• B & C Class ownerships are examining 

“tech incubator” conversions of less 

appealing spaces. 

• Companies throughout the greater 

metro area continue to focus on Boston 

Proper as the younger aged employee 

base desires the urban lifestyle and 

social/professional interaction. 

• Gap between high-rise values and 

low-rise values continues to widen. 

Back Bay 11,524,430 496,979 108,951 605,930 $41 4.3% 5.3% 


CLASS B OFFICE SPACE 





North Station/North End 6,008,270 196,429 17,076 213,505 $26 3.3% 3.6% 

Seaport 5,579,295 1,128,034 75,737 1,203,771 $28 20.2% 21.6% 

Charlestown 2,214,055 99,194 23,975 123,169 $27 4.5% 5.6% 

Back Bay 2,815,951 145,536 13,628 159,164 $38 5.2% 5.7% 


Source: CoStar, NAI Hunneman Commercial Company. Prepared: April, 2012. Rental Rates are asking rents on direct space as reported by Costar. 

Disclaimer: The above data is from sources deemed to be generally reliable, but no warranty is made as to the accuracy of the data nor its 

usefulness for any particular purpose. 

NOTABLE TRANSACTIONS 

• Scvngr, Inc. crosses the bridge from 

Cambridge in an opportunity play at 

One Congress Street 30,000 SF. 

• State Street Bank backs out of downtown, 

commits to the Seaport for 500,000 SF of 

new construction on A Street. 

• Isobar finalizing lifestyle change by leaving 

The Arsenal, Watertown for 30,000+/- SF 

at the Head House of South Station. 

• TA Associates renews at 200 Clarendon 

Street, the John Hancock Building, 

30,000 SF on the 56th floor. 

• LogMeIn commits to 100,000 SF at 

320 Summer Street. 

• Notable Tenants in the Market: 

– Brown Brother Harriman – 350,000 SF 

– Converse – 150,000 SF 

– EBAY – 150,000 SF 

– Enernoc – 100,000 SF 

– ZipCar – 40,000 SF 

*Vacant space, vacancy rate values include direct and sublease space. 



Cambridge Office Market 






East Cambridge 10,054,293 746,196 16,529 762,725 $55 7.4% 7.6% 

Central Cambridge 3,184,517 450,159 0 450,159 $33 14.1% 14.1% 

West Cambridge 1,433,142 299,319 3,992 303,311 $34 20.9% 21.2% 

Cambridge 14,671,952 1,495,674 20,521 1,516,195 $48 10.2% 10.3% 


1430 Massachusetts Avenue 

Cambridge, MA 

45,000 SF in the heart 

of Harvard Square. 

Contact Ben Sutton 617.457.3262 

TRENDS 

• Demand: Strong Cambridge market 

demand has again lowered the vacancy 

rates across the board by 1 to 2% in the 

last quarter. Interestingly Class B office 

availabilities bounced back up by several 

percentage points to 8.7%, which reflects 

the exodus of some significant Cambridge 

startups to the adjacent urban and suburban 

submarkets where there is lower pricing 

and more available space. 

• Rental rates: Office rates have spiked 

across Cambridge with the fast-dropping 

supply in the last two quarters. East 

Cambridge Class A asking rates are now 

$47–57/SF gross and Class B buildings 

are well into the $30s, with some already 

breaking the $40/SF asking mark. It is very 

difficult to find anything in the $20s unless 

it’s in poor condition or distant from a 

T stop. Lab rates range from the mid 

$30s/SF NNN in Alewife to the mid-high 

$50s/SF NNN for existing units to over 

$60/SF NNN for Class A labs built from shell 

with $120 –150/SF landlord allowances. 

• Vacancy rates: Overall class A vacancy has 

now dropped to 10.3% with a continuing 

contrast between the 7.6% range of East 

and Mid-Cambridge and the 21.2% vacant 

Alewife area. Both submarkets dropped by 

approximately 2% in the last quarter which 

indicates swift absorption. The existing lab 




East Cambridge 2,049,109 144,300 0 144,300 $40 7.0% 7.0% 

Central Cambridge 2,091,842 115,842 9,900 125,742 $31 5.5% 6.0% 

West Cambridge 901,488 167,185 0 167,185 $21 18.5% 18.5% 

Cambridge 5,042,439 427,327 9,900 437,227 $33 8.5% 8.7% 




vacancy is now down to 11.7% and should 

soon dip into single digits at the current pace 

of demand. Lab space is now 42.5% of the 

total Class A and B Cambridge space inventory. 

• If the leasing pace at 210 Broadway is 

any indication, it won’t take long to backfill 

141 Portland Street. 210 Broadway, just 

acquired as a mostly vacant asset by Biomed 

in December along with two companion 

buildings, is only left now with 15,000 SF 

of uncommitted space as leases for some 

50,000 SF are already in progress. 


• Alexandria’s 300 Tech Square has landed a 

significant East Cambridge tenant, ALS 

Therapy Development Institute, relocating 

from ARE’s 215 First Street. 

• Google and landlord Boston Properties 

received approval from the City of Cambridge 

create new space connecting three existing 

buildings by promising to replace green 

space nearby in Kendall Square. Much of 

the expansion was triggered by Google’s 

2011 acquisition of ITA Software and will 

leave a 60,000 SF vacancy in ITA’s 141 

Portland Street while allowing Google to 

expand to 300,000 SF at 3, 4 and 5 

Cambridge Center. 

• Also making great progress filling up a 

former anchor tenant (Pegasystems) space 

is 1/101 Main Street. Amazon.com has 

leased 45,000 SF and United Health 

14,000 SF in the wake of a 63,000 SF lease 

by Nokia last quarter. More deals are in the 

pipeline for that complex, which is now 

quoting gross office rents well into the 

$50s/SF, the highest in East Cambridge 

in the current surge. 

• One Kendall Square continues to be 

actively upgrading its small and medium lab 

suites for new tenants. GnuBio (10,000 SF) 

and the Semprus expansion (12,000 SF) 

are two of the latest there. 

• The Alewife area is also registering its share 

of the East Cambridge deal flow as Biomed 

has scored three new lab tenants in Fresh 

Pond Research Park lab buildings, including 

Alnylam adding 16,000 SF. The pace is also 

steady at Equity’s 125-150 CambridgePark 

Drive as Hewlett Packard’s Vertica division 

leased 45,000 SF and a major upgrade 

program is in progress. 

• The Harvard/Mass Ave submarket registered 

a couple significant leases: Harvard University 

committed to 21,550 SF at Charles Square 

and Mathematica expanded to 37,000 SF 

at 955 Massachusetts Avenue. 



Suburban Office Market 






16 Elizabeth Drive 

Chelmsford, MA 

First Class Office/R&D space in an 

appealing campus setting 

Contact Michael McCarthy 617.457.3224 

TRENDS 

• Development is showing signs of life in 

Burlington with Duffy Properties most likely 

breaking ground on 78 Blanchard Street 

this Spring and Keurig leaning towards 

a build-to-suit project in Burlington that 

could break ground in 2013. 

• 10 Corporate Drive in Burlington, one of 

the biggest existing blocks of new office 

space in the Burlington market has had 

strong activity due to the building’s quality, 

and the lack of large contiguous office 

space options in Burlington. 

• An interesting assemblage of space that 

seems to be coming into focus is at Crosby 

Corporate Center in Bedford. Due to a 

number of tenants downsizing or moving 

out, the park can put together up to 

250,000 SF across five buildings (including 

121,000 SF at Building 28). With the 

majority of the park vacant, look for 

opportunities for competitive rental rates. 

• Entegris a provider of critical products and 

materials used in advanced high-technology 

manufacturing, recently bought 9 Crosby 

Drive in Bedford ($89/SF), and will be making 

a significant investment in the building to 

transform it into a state-of-the-art laboratory 

facility. 

• Activity in the 128 North market remains flat 

with a small handful of 5,000–10,000 SF 

Route 128 North 9,167,444 1,470,553 8,217 1,478,770 $25 16.0% 16.1% 

Route 128 Northwest 8,352,129 976,976 87,393 1,064,369 $24 11.7% 12.7% 

Route 128 West 14,875,842 1,955,106 218,602 2,173,708 $29 13.1% 14.6% 


Route 128 South 4,745,654 1,123,584 116,609 1,240,193 $24 23.7% 26.1% 

Route 128 Loop 38,619,955 5,630,277 447,612 6,077,889 $26 14.6% 15.7% 

I-495 North 3,414,862 695,856 60,039 755,895 $17 20.4% 22.1% 

I-495 Northwest 3,813,396 341,312 27,396 368,708 $18 9.0% 9.7% 

I-495 West 5,481,128 1,064,128 142,191 1,206,319 $18 19.4% 22.0% 

I-495 Southwest 788,793 269,917 0 269,917 $21 34.2% 34.2% 

I-495 South 137,000 25,478 0 25,478 $21 18.6% 18.6% 

I-495 Loop 13,635,179 2,396,691 229,626 2,626,317 $18 17.6% 19.3% 





Route 128 North 8,458,276 1,119,749 31,933 1,151,682 $18 13.2% 13.6% 

Route 128 Northwest 5,659,891 1,002,178 139,823 1,142,001 $18 17.7% 20.2% 

Route 128 West 13,726,348 1,744,424 38,253 1,782,677 $22 12.7% 13.0% 


Route 128 South 5,502,399 998,089 29,863 1,027,952 $17 18.1% 18.7% 

Route 128 Loop 36,939,655 5,383,566 267,872 5,651,438 $19 14.6% 15.3% 

I-495 North 3,388,070 652,998 18,103 671,101 $17 19.3% 19.8% 

I-495 Northwest 5,479,009 1,010,773 85,967 1,096,740 $16 18.4% 20.0% 

I-495 West 6,153,374 1,363,448 172,035 1,535,483 $15 22.2% 25.0% 

I-495 Southwest 1,214,928 236,238 0 236,238 $19 19.4% 19.4% 

I-495 South 1,372,545 223,973 0 223,973 $19 16.3% 16.3% 

I-495 Loop 17,607,926 3,487,430 276,105 3,763,535 $16 19.8% 21.4% 




users, as well as a few large 50,000–100,000 

SF users exploring options, but not in a 

rush to complete a new deal. 

• The deals that are completed in the North 

office market are for those spaces with 

modern/amenity rich options. 


• Cadmus Group leased 40,095 SF at 

100 Fifth Avenue in Waltham. 

• Mathworks renewed 44,064 SF at 

Cochituate Place in Framingham. 

• NAI Hunneman leased 23,397 SF at 

307 Waverley Oaks Road in Waltham. 

• RSA Security leased 188,000 SF at 

Bedford Woods in Bedford. 

• Potpourri Group leased 81,068 SF at 

Brookwood Business Center Building 2 

in Billerica. 

• Welch’s leased 85,000 SF at 300 Baker 

Avenue in Concord. 

• CBeyond has put approximately 21,000 SF 

on the sublease market at 1 Burlington 

Woods. 



Industrial/Flex Market 


Cherry Hill Corporate Center 

Danvers, MA 

Office/lab/flex and industrial space 

available amongst four buildings. 

Contact Greg Klemmer 617.457.3253 

TRENDS 

North Market 

• Leasing activity is beginning to increase but 

vacancy is still hovering around 13%. 

• Tenants are drawn to more modern/ 

updated and functional options (clear 

heights and dock doors). 

• Rates remain flat, approximately $5.50 – 

$7.50/SF. 

• Larger tenants are making up most of the 

activity. 

South Market 

• Over the past year we have seen significant 

moves in the food industry. Harbar Foods in 

Canton acquired 83,000 SF of additional 

office/warehouse space; Chex Finer foods 

moved and expanded into 58,000 SF in 

Mansfield; Trader Joe’s finally found a home 

in Middleboro, leasing 132,000 SF at 30 

Commerce Boulevard. 

• Medical industry also continues to grow. 

The recently-completed Myles Standish 

Medical Center in Taunton is currently being 

circled by medical practices in the area 

looking for new space; Dedham Medical 

has broken ground on a new 100,000 SF 

health center in Norwood. 

• Walpole Park South’s new spec building 

has been completed and activity has been 

very strong. 

• Positive absorption continues to occur. 

INDUSTRIAL MARKET 

Industrial Space Vacant Vacancy Rental 

Submarket Inventory Space* Rate* Rate (NNN) 

Boston Central Core 21,660,482 1,852,758 8.6% $8.31 

Route 128 North 27,081,860 1,693,731 6.3% $6.14 

Route 128 Northwest 4,731,707 204,167 4.3% $5.62 

Route 128 West 10,986,370 224,859 2.0% $6.98 

Route 128 Southwest 11,970,319 762,754 6.4% $5.10 

Route 128 South 23,738,231 2,952,043 12.4% $5.05 

Route 128 Loop 78,508,487 5,837,554 7.4% $5.74 

I-495 North 15,480,474 1,220,565 7.9% $4.70 

I-495 Northwest 10,696,859 1,644,591 15.4% $4.45 

I-495 West 16,772,060 1,701,340 10.1% $5.07 

I-495 Southwest 15,470,554 2,019,770 13.1% $4.99 

I-495 South 13,374,501 2,525,147 18.9% $4.14 

I-495 Loop 71,794,448 9,111,413 12.7% $4.71 

Metropolitan Boston 171,963,417 16,801,725 9.8% $5.63 

FLEX/R&D MARKET 

Industrial Space Vacant Vacancy Rental 

Submarket Inventory Space* Rate* Rate (NNN) 

Boston Central Core 7,405,160 690,012 9.3% $16.49 

Route 128 North 13,950,679 1,730,306 12.4% $8.25 

Route 128 Northwest 10,080,809 1,885,963 18.7% $8.59 

Route 128 West 7,949,847 503,027 6.3% $11.27 

Route 128 Southwest 5,502,521 834,944 15.2% $8.85 

Route 128 South 3,632,460 496,076 13.7% $8.76 

Route 128 Loop 41,116,316 5,450,316 13.3% $9.04 

I-495 North 8,761,829 1,775,823 20.3% $7.86 

I-495 Northwest 5,697,443 400,053 7.0% $7.99 

I-495 West 10,253,174 2,305,084 22.5% $6.87 

I-495 Southwest 3,752,887 162,781 4.3% $10.30 

I-495 South 2,182,469 109,485 5.0% $8.56 

I-495 Loop 30,647,802 4,753,226 15.5% $7.90 

Metropolitan Boston 79,169,278 10,893,554 13.8% $9.30 

Source: CoStar, NAI Hunneman Commercial Company. Prepared: April, 2012. Disclaimer: The above data is from sources deemed to be 

generally reliable, but no warranty is made as to the accuracy of the data nor its usefulness for any particular purpose. Vacant space, vacancy rate 

values include direct and sublease space. Average Rental Rates are asking rents on direct space as reported by Costar 


North Market 

• DHL leased 118,196 SF at Centennial Drive 

in Peabody. 

• ShoeBuy leased 76,000 SF at 36 Cabot 

Road in Woburn. 

• CitySports renewed 25,000 SF at 100 

Progress Way in Wilmington. 

• CNE Direct leased 40,000 SF at Two Fifth 

Street in Peabody. 

South Market 

• NAI Hunneman leased the remainder of 

176 S. Washington Street, Norton to the 

existing tenant (Blend and extend). 

• NAI Hunneman leased 22,500 SF of office 

space to Dresser Inc. at 50 Thomas Patten 

Drive, Randolph. 

• NAI Hunneman sells 30,000 SF of office 

space at 315 University Avenue, Norwood 

to Heathrow. 

• Excel, Inc. leased from Invesco; 181,980 SF 

of industrial space at 530 John Hancock 

Road, Taunton. 



Investment Market 


265-Unit Residential 

Building Portfolio 

Malden & Medford, MA • $23.6 Million 

Sold by NAI Hunneman 

TRENDS 

• Cap rates are trending downward in core 

markets as interest rates have fallen in Q1 

2012. Improved credit quality and lower 

vacancies are producing historic prices. 

• Vacancy in commercial properties is still not 

looked upon favorably with the exception of 

the 128 West market where investors are 

willing to pay for smaller vacancies that can 

be filled quickly. 

• The multi-family sector remains very active 

with rents achieving levels as high as pre 

2007. Rising rents and historically low 

vacancies are producing an attractive 

investment environment. 


• Praedium and Taymil Partners purchased 

256-unit Kimball Woods in Burlington for 

$47.8 million. 

• Boston Properties buys 100 Federal Street 

for $615 million. 

• NAI Hunneman sold 340 River Street 

(40,000 SF) retail center for $12.2 million. 

• NAI Hunneman sold the four building 1.1 

million SF Rubenstein Portfolio for $25 million. 

METRO BOSTON OFFICE BUILDING SALES TRENDS 

2008 2009 2010 2011 2012 YTD 

Metro Boston Office Buildings 

Sales Volume $1,713,511,785 $1,234,194,486 $1,075,866,674 $3,620,549,942 $1,205,102,555 

# of Sales 55 21 41 63 18 

Median Cap Rate 6.06% 8.90% 7.33% 7.10% 6.25% 

Median $/SF $215 $197 $179 $173 $239 

Metro Boston Retail Buildings 

Sales Volume $489,204,432 $168,647,666 $365,117,501 $1,655,884,033 $119,585,300 

# of Sales 38 16 29 45 12 


Median $/SF $406 $331 $223 $292 $205 

Metro Boston Industrial / R&D 

Sales Volume $522,462,247 $190,443,874 $194,286,968 $914,178,341 $172,352,101 

# of Sales 47 19 18 45 17 


Median $/SF $81 $62 $83 $70 $32 

Metro Boston Multifamily 

Sales Volume $744,738,685 $443,040,096 $631,825,406 $1,148,016,991 $287,230,000 

# of Sales 34 19 29 42 14 


Metro Boston Totals 

Sales Volume $3,469,917,149 $2,036,326,122 $2,267,096,549 $7,338,629,307 $1,784,269,956 

# of Sales 174 75 117 195 61 


Median $/SF $176 $147 $121 $134 $119 

NOTABLE BUILDING SALES 2012 YTD 

Building Buyer / Seller SF Price $/SF Cap Rate 

Office Buildings 

100 Federal Street Boston Properties / 1,304,899 $615,000,000 $471 4.4% 

Boston 

Bank of America 

Hampshire Street BioMed Realty Trust / 286,878 $119,000,000 $415 5.9% 

Portfolio Cambridge MetLife, Inc. 

535-545 Boylston Street. Clarion Partners / 190,702 $87,100,000 $457 4.8% 


Westport Point Capital 

25 First Street Divco West / 220,750 $79,000,000 $358 5.4% 

Cambridge 

AEW Capital Mgmt. 

179 Lincoln Street Invesco / Milllenium 220,311 $75,000,000 $340 6.3% 


Partners 

Apartment Buildings 

Kimball Towers Praedium Group / 256 $47,875,000$187,012 — 

Burlington 

New York Life 

Regency Place CBRE Global / 120 $24,400,000$203,333 5.6% 

Wilmington 

Clarion Partners 

Colonial Village JLG RE Holdings / 148 $14,000,000 $94,595 6.3% 

Methuen 

CPM, Inc. 

Retail 

Stop & Shop Plaza ✳ Katz Properties / Invesco 74,739 $15,400,000 $206 7.4% 

Whole Foods Acadia Realty Trust / 40,000 $12,200,000 $305 5.8% 

Cambridge 

Kennedy Development Group 

Industrial 

100 & 111 Adams Street NIP Owner, LLC / 22,568,634 $802,090 $28 — 

Clinton 

Hackman Capital Partners 

Source: CoStar, NAI Hunneman Commercial Company. Prepared: April, 2012. Disclaimer: The above data is from sources deemed to be 

generally reliable, but no warranty is made as to the accuracy of the data nor its usefulness for any particular purpose. Vacant space, vacancy rate 

values include direct and sublease space. Average Rental Rates are asking rents on direct space as reported by Costar 



NAI Hunneman Contacts 

Corporate 

Stuart Pratt 

CEO 

617.457.4333 

spratt@naihunneman.com 

Mike DiGiano 

Executive Vice President/COO 

617.457.3410 

mdigiano@naihunneman.com 

David Finnegan 

Director of Marketing 

617.457.3238 

dfinnegan@naihunneman.com 

Downtown-Cambridge Leasing 

Jeff Becker 

Senior Vice President 

617.457.3424 

jbecker@naihunneman.com 

Jon Gifford 


617.457.3401 

jgifford@naihunneman.com 

David Cooney 

Vice President 

617.457.3305 

dcooney@naihunneman.com 

Bonny Doorakian 


617.457.3317 

bdoorakian@naihunneman.com 

Ben Sutton 

Senior Associate 

617.457.3424 

bsutton@naihunneman.com 

Chris Gotfredson 


617.457.3255 

cgotfredson@naihunneman.com 

Greg Larsen 


617.457.3321 

glarsen@naihunneman.com 

Suburban Leasing 

Steve James 

Executive Vice President 

617.457.3263 

sjames@naihunneman.com 

James Boudrot 


617.457.3328 

jboudrot@naihunneman.com 

Brendan Daly 


617.457.3281 

bdaly@naihunneman.com 

Michael McCarthy 


617.457.3224 

mmccarthy@naihunneman.com 

Evan Gallagher 


617.457.3350 

egallagher@naihunneman.com 

Industrial Leasing 

Trey Agnew 


617.457.3363 

tagnew@naihunneman.com 

J.P. Plunkett 


617.457.3230 

jplunkett@naihunneman.com 

Greg Klemmer 


617.457.3253 

gklemmer@naihunneman.com 

Cathy Minnerly 


617.457.3334 

cminnerly@naihunneman.com 

David Gilkie 


617.457.3202 

dgilkie@naihunneman.com 

Tim Brodigan 


617.457.3247 

tbrodigan@naihunneman.com 

Ovar Osvold 

Associate 

617.457.3222 

oosvold@naihunneman.com 

Investment Sales 

David Ross 


617.457.3392 

dross@naihunneman.com 

Bob Tito 


617.457.3231 

btito@naihunneman.com 

Carl Christie 


617.457.3394 

cchristie@naihunneman.com 

Doug Jacoby 


617.457.3237 

djacoby@naihunneman.com 

Scott Dragos 


617.457.3248 

sdragos@naihunneman.com 

Dan Collins 


617.457.3252 

dcollins@naihunneman.com 

Sean Ryan 

Associate 

617.457.3357 

sryan@naihunneman.com 

Dan McGee 

Associate 

617.457.3266 

dmcgee@naihunneman.com 

Henry Lieber 

Associate 

617.457.3383 

hlieber@naihunneman.com 

Gina Barroso 

Associate 

617.457.3261 

dmcgee@naihunneman.com 

Robert Tito 

Associate 

617.457.3355 

rtito@naihunneman.com 

Mitchell Levey 

Associate 

617.457.3227 

mlevey@naihunneman.com 



Methodology, Definitions 

& Submarket Map 

Methodology 

We have divided the Metro Boston area into four submarkets for 

office properties: Boston, Cambridge, Route 128 and Route 495. 

Industrial and Flex/R&D properties are divided into three submarkets: 

Central Core (Boston, Cambridge, and Inner Suburbs), Route 128 

and Route 495. 

Absorption (Net) 

The change in occupied space in a given time period. 

Average Asking Rental Rate 

Rental rate as quoted from each building’s owner/management 

company: for office space, a full service rate was requested; for retail, 

a triple net rate requested; for industrial, a triple net rate basis. 

Building Class 

Class A product is office space of steel and concrete construction, 

quality tenants, excellent amenities & premium rates. Class B product 

is office space with fair to good finishes and a wide range of tenants. 

Cap Rate 

The net operating income divided by the sales price or value of a 

property expressed as a percentage. 

CBD 

Central business district. 

Direct Vacancy 

Space currently available for lease directly with the landlord or building 

owner. 

Overall Vacancy 

All unoccupied lease space, either direct or sublease. 

Sublease 

Arrangement in which a tenant leases rental property to another and 

the tenant becomes the landlord to the subtenant. 

Total Square Footage 

Net rentable area considered available for lease; includes sublease 

space. 


Commercial Real Estate Services, Worldwide 

Asia Pacfic 

Canada 

Europe, Middle East and Africa 

Latin America and the Caribbean 

United States 

303 Congress Street 

Boston MA 02110 

Tel 617.457.3400 

Fax 617.457.3268 

www.NAIHunneman.com 

Committed to Boston. 

Connected to the World.

Metro Boston Real Estate Market Review | 1st ... - NAI Hunneman

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