Robust demand from the region's technology and innovation occupier base contributed to a sixth consecutive quarter of po
Office Market Report | Third Quarter 2014
Greater Boston
Key Market Takeaways • Absorption has averaged 712,000 sf per quarter during a six-quarter, positive-demand streak. • Intensifying traffic conditions at peak hours in to and out of the region’s core reflects unprecedented Urban Boston employment levels evidenced by record occupancy rates and efficient per worker footprint utilization. • Eight build-to-suit projects underscore a 2.7-million-sf, 88-percent preleased construction pipeline. • A 31% premium for 5
space over 4
space in the Core could stretch as top assets consider pushing rents.
• The 5.6-million-sf Kendall submarket is 2.0% vacant. • Institute for Supply Management surveys suggest area business leaders expect employment levels to increase in the near term. • Havas Media took occupancy of the redeveloped Filene’s department store.
©2014 Avison Young New England LLC. All rights reserved. The information contained herein was obtained from sources deemed reliable and is believed to be true; it has not been verified and as such, cannot be warranted nor form any part of any future contract.
Happening This Quarter Robust demand from the region’s technology and innovation occupier base contributed to a sixth consecutive quarter of positive absorption in the greater Boston commercial office market for the third quarter ended September 30, 2014. During this six-quarter stretch, absorption has averaged 712,000 square feet (sf) per quarter with tenants demonstrating a strong preference for quality. The region’s 13.7 million sf of five-star, trophy-quality inventory has seen vacancy plummet from 11.2% to 7.1%. The driver of this vacancy decrease, along with an accelerating urbanization trend, continues to be demand for the economy’s key knowledge workers. Low unemployment among these highly educated workers, which have increasingly demonstrated preferences for contemporary, high-quality work settings, has forced employers to offer these work settings in ways not recently experienced. This has also fueled an increased level of relocations and build-to-suits, as eight major office build-tosuit projects dot the market. Waltham, the market’s most prestigious suburban location and among the country’s most recognizable, continues to see heavy demand from new occupants, including some resisting a flight toward the urban core, in anticipation of a large number of retail amenities set to be introduced in the town in 2015.
As Kendall vacancy remains under five percent, the Volpe Transportation Center has become the next potential major relief valve. The 1960s-built facility could be redeveloped into more than two million sf of developable space.
In Waltham, Boston Properties’ plans for its 230,000-sf build-to-suit facility for Wolverine Worldwide at CityPoint depict an edgy design with live/work/playenvisioned amenities; perhaps the suburbs aren’t so bad after all!
A forerunner in the innovation center craze, the Cambridge Innovation Center put its official stamp of “cool” on Boston’s former Financial District (now “Core”), opening a 65,000-sf facility at 50 Milk Street.
Havas Media’s Arnold Worldwide unit moved into the Burnham Building in Downtown Crossing, bringing life back into the former home of Filene’s and Filene’s Basement; the city’s tallest residential tower is under construction next door.
Perhaps quietly, occupancy levels have increased in the region’s periphery, with vacancy dipping, particularly for the area’s better properties; four-star asking rents have edged up 4% in five quarters.
Intro to AY Methodology In response to a growing need for a next-generation approach for commercial real estate research, Avison Young New England is excited to announce a re-imagined platform for research and analysis for the Boston market. While continuing to provide the market’s most accurate and up-to-date information, Avison Young is adjusting some of its methodology in the interests of providing the most accurate and helpful information in the market, in the most upto-date way possible. Here are some of the highlights of our new methodology:
Stars We are the first commercial real estate firm greater Boston to adopt a Five-Star () building rating system. When compared with an A/B class system commonly used at present in the greater Boston market, the Five systems stands to far better track absorption, vacancy and rent trends that occur in different ways, particularly on the high end and with value-minded properties. We look forward to discussing this segmentation with you. Please consider the following methodology, noting 1 buildings are excluded from statistics.
A/B Generally …
Current Price $
Equivalent
Urban
128 Belt
A, A+
$65
$43
A premium building including security, cafeteria or eating options and substantial, updated lobby and main entrance.
A
$52
$29
A good tenant experience offering at least a basic lobby and some level of tenant amenity; ample parking in the suburbs.
B, B+
$40
$23
A basic tenant experience offering suitable HVAC coverage and ADA compliant accessibility to all commercial suites.
B, B-
$33
$17
A spectacular tenant experience with regard to setting, views, lobby appearance, services and building equipment/systems.
Owner-occupied inclusion When real estate research methods were being first established in the 1970s, there was little fluid capital available for investment in real estate assets, rendering owner-occupied buildings as non-competitive inventory. Today, the availability of real estate capital makes nearly every owneroccupied asset a potential single-tenant facility and communication technology and the migration of business make nearly every property potentially competitive. We view the exclusion of owneroccupied properties to be obsolete; we’re including them.
More than 20% of the market’s multi-tenant office inventory was once owner occupied.
Pg 3
Urban Boston Vacancy continued to straddle the 10% mark as occupancy levels rose for the sixth consecutive quarter, and a diversity of companies continue to absorb Urban Boston space. 5 inventory is 6.8% vacant, having been more than 24% vacant in early 2011. With occupied sf at record levels, the lack of a shadow-space trend and sf per worker dropping from over 250 to about 200, employment in the core may be 50% higher than at the 2000 “tech boom” peak. Construction was completed on the 142,000-sf Burnham Building; Havas took occupancy in the quarter. The Seaport District’s one-million-sf construction pipeline is 98% preleased.
Core
vac %
qtr abs
+234k
11.4%
4 ask $
Property
$48.67
Core absorption was positive for the second consecutive quarter as the addition of both Arnold Worldwide and Cambridge Innovation Center continued to trend the traditional Financial District toward technology and creative occupants. Rents, having increased moderately in recent periods, appeared to remain firm in the quarter.
Core Fringe -12k
12.1%
$45.00
Among the city’s most stable submarkets, the Core Fringe vacancy remained contained as relatively few properties saw vacancy increases or decreases. A run on North Station and South Station space spurred on by technology tenants has left each of those areas with sub-ten vacancy and little additional choice for prospective tenants.
Vacancy
Largest Investment Sales this Quarter
10.3%
Urban Boston
Price (mm)
Per sf
1 Beacon St, Boston
$561.5
$552
Cross Point, Lowell
$100.0
$78
5 Wall St, Burlington
$62.5
$344
800 South St, Waltham
$55.0
$266
Cambridgepark Dr, Cambridge
$54.6
$189
51 Melcher St, Boston
$52.8
$514
100 Crosby Dr, Bedford
$50.0
$191
9 Tech Dr, Westborough
$47.0
$187
35 Cambridgepark Dr, Cam.
$43.0
$315
38 Chauncy St, Boston
$39.5
$298
300 Apollo Dr, Chelmsford
$39.4
$134
63 South Ave, Burlington
$39.4
$261
1 Van De Graaff Dr, Burlington
$38.5
$244
60 Hickory Dr, Waltham
$35.5
$156
400 Fifth Ave, Waltham
$19.7
$171
Absorption
+280k
Urban Boston
vacancy %
absorption sf in thousands
30%
800
25%
600
5inventory
400
20%
200 15% 0 10%
all inventory
-200
5%
-400
0%
-600 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Urban Boston Seaport
What’s with this collaboration craze?
-30k
8.6%
$54.67
With nearly all Fort Point space depleted, tenant choice remains constricted to an occasional rolling availability at the World Trade Center two-building complex, and a larger array of less expensive options, albeit at the seemingly more distant Marine Industrial Park. Tenants touring the area remain technology and creative in nature, and would traditionally be Cambridge occupants if there had been suitable spaces for them there. A filling-out of amenities and living options continues to expand Seaport foot and auto traffic outside of strict working hours.
Back Bay +87k
8.1%
$62.20
A continued re-tenanting of expanding firms at the John Hancock Tower and an expansion of Wayfair at Copley Place continue to increase occupancy levels and keep rents among the highest in the region. Construction is imminent at 888 Boylston Street, a project which will include 362,000 sf of office space to be anchored by Natixis Global Asset Management and an additional retail allotment at the base. The submarket’s 2.6 million sf of 5 space is 1.1% vacant and there are just two existing options, of any quality, for space users over 100,000 sf in size.
Asking Rents
$50.97
Urban Boston
The number of collaborative offices has grown rapidly, now consuming more than 600,000 sf of space in Greater Boston; here’s a run-down of shared spaces in the area, including forerunner Cambridge Innovation Center. Name Cambridge Innovation Ctr WeWork South Station Cambridge Innovation Ctr WeWork Fort Point Artisans Asylum Intrepid Labs Workbar Boston Space with a Soul NGIN Workplace DogPatch Labs Workbar Cambridge Commoncove Oficio Hack/Reduce Idea Space
Contiguous Choices 5
4
3
2
5 to 10k
123
5
30
37
51
10 to 20k
89
5
33
23
28
20 to 50k
55
6
25
17
7
50 to 100k
28
1
17
6
4
100 to 200k
10
1
4
5
0
2
0
1
1
0
$49 $47 $46 $45 $44 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
by classification sf size groups in thousands
Total
$52
$48
Est 1998 2014 2014 2013 2011 2012 2010 2011 2013 2009 2013 2013 2013 2012 2014
Much of today’s Seaport District sits on created land, similar to the Back Bay. The area was built as an investment by the Boston Wharf Company, a subsidiary of UK-based Peninsular and Oriental Steam Navigation Company.
Urban Boston
$50
Size (sf) 197,000 148,000 65,000 49,000 40,000 29,000 20,000 20,000 15,000 15,000 13,000 10,000 10,000 8,000 5,000
Did you know …
average 4 asking rent per sf per year
$51
Location Cambridge Boston Boston Boston Somerville Cambridge Boston Boston Cambridge Cambridge Cambridge Chelsea Boston Cambridge Boston
200k +
Pg 5
Cambridge & The Ring Cambridge and the Ring continue to experience steady tenant demand with available choices severely constricted in the most preferred locations and a minute construction pipeline set to provide minimal relief. With 2.0% vacancy, Kendall direct asking lease rates could set a regional record in the very near term. A flurry of large, mixed-use developments in the Ring, such as Assembly Row in Somerville, a reconfiguration of “The Arsenal” in Watertown, and a build-to-suit development for New Balance in Brighton are underway. There is no vacant 4 product in Fenway/Kenmore, the Crosstown Corridor or Harvard Square. The US Government has introduced East Cambridge’s Volpe Center as a two-million-sf redevelopment site.
Largest Leases Signed this Quarter
Kendall
Tenant
Property
Size (sf)
Osram Sylvania
200 Ballardvale St, Wilmington
125,000
Genzyme
1 Research Dr, Westborough
114,000
CDM Smith
75 State St, Boston
110,000
Care.com
77 CityPoint, Waltham
109,000
Cambridge Hlth. All.
195 Canal St, Malden
76,000
BR+A
10 Guest St, Boston
47,000
Hemenway & Barnes
75 State St, Boston
44,000
Energi
10 Centennial Dr, Peabody
42,000
Childrens Hosp. Bos.
10 Centennial Dr, Peabody
32,000
L-3 Communications 46 Jonspin Rd, Wilmington
28,000
The most suburb-like area of Cambridge continues to enjoy steady occupancy levels and lease rates more moderate but stable than those observed in Kendall. Potential office conversion of the submarket’s heavily vacant lab product could introduce new competitive product, though this could be supported by increased demand patterns.
Adobe Systems
1 Newton Pl, Newton
27,000
Kahn, Litwin, Renza
800 South St, Waltham
22,000
Kewill
1 Executive Dr, Chelmsford
20,000
Simplisafe
294 Washington St, Boston
20,000
RBM Technologies
268 Summer St, Boston
16,000
Vacancy
Absorption
-62k
2.0%
$70.00
Arguably the driver of the entire greater Boston region, Kendall vacancy remains extremely scant with the current vacant suites nearly fully concentrated at just two sites. Construction nears completion at the 64,000 sf 450 Kendall Street boutique-sized facility, though the structure, still available, is not of the scale which will impact a heavy overbalance of tenants.
Alewife +76k
11.8%
$42.00
6.8%
Cambridge
-5k
Cambridge
vacancy %
absorption sf in thousands
18%
600
16%
500
14%
400
4inventory
12%
300
10%
200
8%
all inventory
6%
100
4%
0
2%
-100
0%
-200 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Cambridge & The Ring Contiguous Choices
Near North +22k
Cambridge
14.3%
$37.00
Total
5
4
3
2
A small relocation and expansion by Cambridge Health Alliance drove a modest occupancy increase, though continued construction progress on Partners Healthcare’s build-to-suit facility at the multi-use Assembly Row project is set to materially remake the area’s business environment.
5 to 10k
18
0
8
8
2
10 to 20k
9
0
4
4
1
20 to 50k
9
0
7
2
0
50 to 100k
3
0
2
1
0
Watertown Brighton
100 to 200k
2
0
1
1
0
200k +
1
0
1
0
0
-104k
6.3%
$31.00
Aggressive renovation of the Arsenal in Watertown and construction at the New Balance build-to-suit in Brighton continue to reshape this submarket, which already has some of the best road and public transit connectivity of areas traditionally considered to have suburban characteristics.
Fenway Kenmore 0k
0.7%
Contiguous Choices The Ring Total
5
4
3
2
5 to 10k
27
0
3
11
13
10 to 20k
17
0
4
6
7
20 to 50k
18
0
4
7
7
50 to 100k
8
0
3
1
4
100 to 200k
5
0
1
1
3
200k +
0
0
0
0
0
$42.00
Conditions would seemingly be favorable for new construction in Kenmore Square, given the overall urbanization trend, nearly no vacant space, increasing lease rates and low vacancy in abutting submarkets, though the area’s many recent new developments have capitalized on a robust multi-housing market.
Vacancy
7.9%
The Ring
by classification, sf size groups in thousands
Absorption
-81k
The Ring
vacancy %
absorption sf in thousands
250
12%
200
10%
150 8%
100 50
6%
0
4%
-50 2%
-100
0%
-150 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Pg 7
128 Belt A string of quarters of positive absorption stretched out to 14 as tenants have boosted occupancy levels by 3.4 million sf. 4 average asking rents have increased by $1.51 over two quarters. 5 vacancy has plummeted from 11.1% to 5.6% over the past four quarters. Tenants have overwhelmingly preferred higher quality product over the past seven quarters, with 78% of positive absorption occurring in 4 and 5 properties. A 977,000-sf construction pipeline is 88% pre-committed to users. With 5 average asking rents eclipsing $42.00 per sf, new construction becomes increasingly justified.
128 Core
Construction Update Property
City
Tenant
RBA (sf)
Lease %
181 Mass. Ave
Cambridge
Novartis
550,000
100%
A record 18.7 million sf is now occupied in the region’s premiere suburban submarket, as tenants continue to focus on higher quality and better located assets. Tenants are likely to find many existing options are concentrated in 3 properties, which are more than 20% vacant, with higher quality assets showing singledigit and decreasing vacancy. These dynamics have given rise to build-to-suit development, with construction continuing in Waltham on a 302,000-sf facility for Vistaprint, and groundbreaking appears imminent on a 230,000-sf project to serve as a headquarters for Wolverine Worldwide. These projects, in addition to a facility underway at the former Polaroid site, are expected to introduce retail and other live/work/play amenities to Waltham, addressing what has long-been considered a weakness of the Waltham area and a competitive advantage of Burlington. Upward mobility of 5 rents to $42 per sf could conceivably begin pricing increases down the value chain.
101 Seaport Blvd
Boston
PwC
440,000
100%
354 Long. Ave
Boston
Dana-Farber
414,000
39%
75-125 Binney St
Cambridge
ARIAD Pharma
390,000
55%
104 Northern Ave
Boston
Goodwin Procter
360,000
100%
275 Wyman St
Waltham
Vistaprint
302,006
100%
400 First Ave
Needham
Tripadvisor
280,892
100%
53 South Ave
Burlington
Keurig
274,110
100%
150 Guest St
Boston
New Balance
250,000
100%
300 Mass. Ave
Cambridge
Millennium Tak.
250,000
100%
160 N Wash. St
Boston
Converse
230,000
89%
22 Windsor St
Cambridge
Novartis
180,000
100%
450 Artisan Way
Somerville
spec
132,000
0%
1265 Main St
Waltham
spec
120,000
0%
114 Mt. Auburn St
Cambridge
Harvard
66,463
100%
450 Kendall Street
Cambridge
spec
64,000
9%
2,699,471
88%
Vacancy
Absorption
+70k
11.9%
$30.32
11.3%
128 Belt
total office total office & lab
4,303,471 82% white background denotes lab property lab product otherwise not covered in this report
+151k
128 Belt
vacancy %
absorption sf in thousands
25%
500 400
20%
300
all inventory
15%
200 100
10%
0
5inventory
-100
5%
-200 0%
-300 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
128 Belt Going, going …
+10k
10.6%
$24.89
A moderate positive demand trend last four quarters has brought about a flight to quality as the submarket’s 3.7-million-sf inventory of 4 properties has seen vacancy dip from 12.3% to 9.0%. Despite positive internal trends, lease rates appear hampered by high vacancy in adjacent areas.
Given current trends, some areas in greater Boston are approaching low remaining supply levels. Here is the number of years it will take to get to two percent vacancy at last twelve months’ absorption rates in some areas. less than one year
two years
more than five years PO Square
bigger
128 North
Greenway 128 Core Seaport size
9 Corridor 9.6%
$38.29
Near North
With 4 vacancy down to 3.5%, average asking rents for that product have vaulted 13% over the past two quarters as the area enjoys access to some of the most desirable suburban housing in the region. Delivery of Tripadvisor’s 281,000-sf build-to-suit facility in Needham is expected in 2015.
X-town smaller
-12k
South Shore
Kendall
Harvard
South Station
Did you know … South Shore +82k
13.1%
$21.11
Fifteen properties in the submarket experienced at least 1,000 sf of increased occupancy while just four experienced occupancy decreases of that amount, as 3 and 4 properties benefited from the shuffling. The area remains the highest value along the 128 Belt, offering a 45% discount to the neighboring 9 Corridor, along with far more plentiful selection.
Asking Rents
$29.02
128 Belt
With 11.3 million sf of inventory (soon to be nearly 12 million sf), Waltham is one of very few suburban municipalities in North America to boast more than ten million sf of office inventory. Which has the most? With more than 17 million sf, that would be Southfield, Michigan, a beneficiary of decades of disinvestment in the region’s core – Detroit.
Contiguous Choices 128 Belt
average 4 asking rent per sf per $30 year
$29 $28
Total
5
4
3
2
5 to 10k
185
3
60
96
26
10 to 20k
122
2
40
57
23
20 to 50k
87
2
29
38
18
50 to 100k
36
0
11
17
8
100 to 200k
12
0
1
8
3
1
0
0
1
0
$27 $26 $25 $24 $23 $22 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
by classification sf size groups in thousands
200k +
Pg 9
495 Belt Expansion of existing tenants and situational relocation of select tenants from closer-in areas resulted in increased occupancy in the 495 Belt in the quarter as 4 rents steadied, having up-ticked slightly in the preceding quarter. Tenant growth remains centered in 4 properties, and inventory now 11.1% vacant. Insulet and SanDisk, each establishing new facilities along 495, combined for 148,000 sf of new occupancy. The 495 Belt’s largest single asset, the Cross Point facility in Lowell, was acquired by CP Associates LLC ($100.0 million, 1.3 million sf, $78 per sf), a joint venture between newly formed Anchor Line Partners and Farallon Capital Management. Tenant choice is overwhelmingly confined to 3 facilities in most areas.
495 North
495 West
+41k
22.3%
$23.00
+103k
23.9%
$19.63
Despite strong occupancy performance on the part of 4 assets such as those in Andover, 75% of submarket vacancy is concentrated in 3 facilities. Schneider Electric moved its world headquarters into Andover from North Andover as vacancy dipped to the lowest level seen since 2008.
An influx of large tenants Boston Scientific, GE Healthcare and Quest Diagnostics has boosted occupancy levels, though stagnant rents reflect high availability and an uncertainty of additional future demand. Much of the 44.2% vacant 2 product needs significant repositioning.
2&3 Corridor
Framingham/Natick
+65k
18.8%
$19.80
-28k
8.0%
$27.00
Quarterly and last-twelve-month absorption are both positive in the 2&3 Corridor, with tenants attracted to the sharp discount available when compared to the immediately abutting 128 Core submarket. The 4.5million-sf inventory of 4 product is 10.1% vacant, with choices confined to 2 and 3.
This perennial low vacancy submarket is seeing some increases in availability with long-time anchor, Boston Scientific, shuffling to its new location in Marlborough. Value seekers, however, priced out closer-in submarkets with rapidly escalating rents could welcome certain, albeit short-term, options.
Vacancy
Absorption
19.1%
495 Belt
+193k
495 Belt
vacancy %
absorption sf in thousands
25%
600 400
all inventory
20%
200 15%
0
10%
-200
4inventory
-400
5%
-600
0%
-800 Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Q3 09
Q3 10
Q3 11
Q3 12
Q3 13
Q3 14
Statistics Vacancy % inv sf TOTAL MARKET Urban Boston Core
total
Absorption (sf)
Construction
5
4
q3’14
ltm
uc sf comp*
199,045
12.7%
7.1%
10.3%
537
1,751
2,699 1,564
65,507
10.3%
6.8%
12.0%
280
870
1,030 1,209
34,710
11.4%
10.5%
13.5%
234
265
0
Asking Rents 5
4
3
2
$64.50
$50.97 $39.94 $32.75
142
$63.71
$48.67 $37.79 $31.48
Greenway
12,402
6.8%
8.1%
7.6%
(43)
3
0
0
$65.67
$48.83 $39.00
$37.00
PO Square
13,491
14.6%
na
15.8%
300
325
0
142
na
$48.15 $37.06
$30.97
State Street
8,818
13.1%
23.5%
15.4%
(22)
(63)
0
0
$52.00
$49.80 $38.00
$30.63
6,597
12.1%
na
13.1%
(12)
(159)
230
0
na
North Station
2,335
1.9%
na
0.0%
(9)
153
0
0
na
Midtown
2,846
22.4%
na
na
(9)
(330)
0
0
na
South Station
1,415
8.1%
na
18.5%
6
18
0
0
na
Back Bay
14,058
8.1%
1.1%
8.9%
87
(308)
0
0
$70.00
$62.20 $45.73 $40.16
Copley
10,475
7.9%
1.5%
9.0%
132
(153)
0
0
$70.00
$64.67 $47.50
$40.51 $39.33
Core Fringe
Prudential
$45.00 $36.67 $31.03 na
$35.50
$30.49
na
$40.00
$30.37
$45.00 $38.00
$32.90
3,583
8.7%
0.2%
8.6%
(45)
(155)
0
0
na
$58.50 $41.00
10,142
8.6%
0.0%
6.2%
(30)
1,072
800
1,066
na
$54.67 $38.67 $32.45
Fort Point
4,049
7.6%
na
0.0%
(44)
525
0
500
na
Waterside
4,044
4.9%
0.0%
7.6%
15
572
800
566
na
Seaport
Marine Ind Park
na
$39.40
$54.67 $35.00
2,048
18.0%
na
na
0
(25)
0
0
na
6.8%
0.0%
9.2%
(5)
243
310
50
na
$53.67 $45.70 $34.40
Kendall Square
5,560
2.0%
0.0%
1.7%
(62)
206
64
50
na
$70.00 $55.00
Lechmere
1,698
20.8%
na
35.4%
(23)
38
0
0
na
$54.25
Central Sq
781
4.6%
na
0.0%
8
(28)
180
0
na
Harvard Sq
903
0.8%
na
0.0%
(4)
(7)
66
0
na
1,937
11.8%
na
8.3%
76
33
0
0
na
$42.00 $35.33
13,340
7.9%
na
9.0%
(81)
90
382
0
na
$38.25 $29.76 $24.48
Charlestown/Eastie
2,369
14.9%
na
0.0%
(51)
(125)
0
0
na
Near North
3,022
14.3%
na
16.5%
22
68
132
0
na
Watertown Brighton
3,274
6.3%
na
6.7%
(104)
(2)
250
0
na
Fenway Kenmore
2,417
0.7%
na
0.0%
0
121
0
0
na
Alewife The Ring
Crosstown Corridor
na
na
10,879
Cambridge
na
$37.10 $27.80 na
na
$37.76
na
$42.00
$34.50
na
$34.00
na
na
$27.50
$39.67
$29.25
$37.00 $27.56
$22.70
na
$23.00
$22.67
$42.00 $38.00
$28.00
2,257
2.2%
na
0.0%
51
29
0
0
na
54,880
11.3%
5.6%
8.0%
151
809
977
120
$43.33
128 North
12,317
10.6%
na
9.0%
10
203
0
0
na
$24.89 $18.23
$15.35
128 Core
21,201
11.9%
6.4%
9.2%
70
302
696
120
$42.00
$30.32 $24.86
$20.60
9 Corridor
11,130
9.6%
0.0%
3.5%
(12)
22
281
0
$50.00
$38.29 $26.59
$17.60
South Shore
10,232
13.1%
na
9.4%
82
282
0
0
na
$21.11 $19.64
$17.91
54,438
19.1%
23.6%
11.1%
193
(261)
0
185
$23.50
$21.52 $18.05 $16.22
8,457
22.3%
24.8%
17.1%
41
114
0
77
$25.00
$23.00 $18.23
128 Belt
495 Belt 495 North
na
$27.50
$18.00
$29.02 $22.55 $17.17
$15.88
2&3 Corridor
19,750
18.8%
na
10.1%
65
272
0
108
na
$19.80 $17.84
$16.44
495 West
13,571
23.9%
23.1%
16.5%
103
(684)
0
0
$22.00
$19.63 $17.72
$14.66
Framingham/Natick
6,487
8.0%
na
1.9%
(28)
12
0
0
na
$27.00 $21.27
$17.28
495 Southwest
5,063
13.0%
na
10.1%
13
29
0
0
na
$20.50 $17.47
$16.61
24 Corridor
1,110
34.5%
na
71.9%
0
(5)
0
0
na
$21.00 $17.38
na
sf in thousands inv = inventory ltm = last twelve months asking rents net of electric per sf per year Avison Young Star-quality classification * last twelve months completions
Pg 11
Around the Avisphere | Preleasing preleased % of under-construction inventory Long Island Atlanta Boston Columbus Charleston New Jersey Raleigh Dallas Quebec City Miami Ottawa Montreal Regina Washington DC San Diego San Francisco Calgary Missassauga Vancouver Toronto Winnepeg Chicago New York Lethbridge Denver Pittsburgh Edmonton Austin Orange County Guelph Reno Las Vegas Fairfield Detroit Tampa San Mateo Los Angeles
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Vancouver | Avison Young city of the quarter Canada’s third largest city is also among the western world’s fastest growing. It is known for its natural beauty, competency in technology, and its rich history as Canada’s, and the British Empire’s, primary North American west coast shipping port. Boston and Vancouver share many characteristics, including a bustling technology industry and a vibrant, walkable urban core. Interestingly, Vancouver is, by far, the largest North American city lacking a direct flight from Boston. Vancouver has an notable number of residential high-rises. Boston
Vancouver
4,590,000
2,476,000
13,340
13,590
cbd sf (mm)
65.5
41.2
total sf (mm)
199.0
60.7
sf built last five years
6,158,000
3,232,000
sf under construction
2,984,000
1,064,000
metro population
Vancouver vs Boston high-rise comparison number of high rises
300
278 above 200 feet
250 200
city density (per sq mi)
150 100
abov e 500 feet
50 2
If you go … take seaplane tour, walk through stanley park, climb grouse mountain eat sushi, alaskan king crab, pacific northwest oysters
83
16
0
vancouver
boston
Avison Young New England | 200 State Street 7th Floor Boston MA 02111 USA Brendan Carroll, Vice President, Research New England |
[email protected] ©2014 Avison Young New England LLC. All rights reserved. The information contained herein was obtained from sources deemed reliable and is believed to be true; it has not been verified and as such, cannot be warranted nor form any part of any future contract.
