Just Released: CBRE/NE 2018 New England Market Outlook

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Building Today for a Stronger Tomorrow: CBRE Cares Year in Review

CBRE Cares-NE Logo_342CBRE Cares New England continues its mission “to build a foundation for our community by facilitating a variety of volunteer and giving opportunities that have a significant effect on the lives of families in need—building today for a stronger tomorrow.” Designed to harness the aggregate potential of CBRE/New England’s over 28 MSF property management portfolio, events are coordinated to engage both CBRE/NE tenants and employees. Over the past year, CBRE Cares New England organized the following charitable activities:

Food Drive: Over 2,600 Pounds of Food Collected

2017_Food Drive_CaptivateIn March, CBRE Cares New England facilitated its eighth annual Food Drive to collect and distribute non-perishable goods to families in need across New England, partnering with The Greater Boston Food Bank, Loaves & Fishes, Rhode Island Community Food Bank and New Hampshire Food Bank. Over the course of just two weeks, CBRE Cares New England collected a total of over 2,600 pounds of food donations, amounting to 10,400 meals created!

A capping off event took place on April 12th, atfood-drive-3.jpg the Greater Boston Food Bank (GBFB) in Boston, Massachusetts where CBRE/NE volunteers joined a host of directors and volunteers to help achieve GBFB’s mission of ending hunger in eastern Massachusetts. Over the course of the day, CBRE/NE volunteers helped sort 19,450 pounds of food making it possible for the GBFB to supply over 14,000 meals to those in need.

 

Footwear Drive: Over 1,000 Pairs Collected

CBRE Cares Shoe drive_captivatePartnering with the Massachusetts, Connecticut and Rhode Island Goodwill Chapters as well as Children’s Friend in Rhode Island, CBRE Cares New England facilitated its first Footwear Drive. Over 1,000 pairs of socks and new or gently used shoes were primarily distributed to local Goodwill chapters across New England. The network of 162 independent, local Goodwills in the United States and Canada offers customized training and services for individuals who want to find a job, pursue a credential or degree, and strengthen their finances. Donations were also given to Children’s Friend of Rhode Island, Rhode Island’s oldest child welfare organization and a leading provider of child welfare, family support, mental health and child development services.

Iphoto4n combination with this drive, on May 25th, CBRE/NE employees volunteered their time at the Cradles to Crayons Giving Factory. Volunteers enjoyed a day of fun and service as they created “KidPacks” to help Cradles to Crayons work towards their mission of providing basic necessities for children in need. In addition to putting together these packages of clothing, toiletries, bedding, diapers, books and more for individual children, volunteers spent the second half of the day sorting children’s clothing donations. At the end of the day, 270 children in need were helped by our team!

Back-to-School Supplies Drive: Over 3,500 Items Collected

By providing kids with the tools so many take for granted, our Back-to-School Drive allows kids to focus on what’s really important—their schoolwork. CBRE Cares New England partnered with a host of Boys & Girls Clubs around New England to collect and diCBRECares_BackToSchoolDrive_InternalScreen(landscape)stribute 1,780 supplies for less fortunate children. The mission of Boys & Girls Clubs of Boston is to help young people, especially those who need us most, build strong character and realize their full potential as responsible citizens and leaders. In addition, over 1,800 items were collected and used to fill more than 30 backpacks with back-to-school supplies in partnership with the Capital Region Education Council, who working with and for its member districts, has developed a wide array of cost-effective and high-quality programs and services to meet the educational needs of children and adults in Greater Hartford. CBRE/NE employees and tenants pulled off our fourth Back-to-School Drive without a hitch and just in time for the first day of school!

4In conjunction with this drive, on September 18th volunteers partnered with Boston Cares leaders once again, but this time to build twin bed frames that were distributed through agency partners to families transitioning out of homelessness in Greater Boston. In total nine beds were constructed from start to finish by our team of volunteers. Then on October 6th volunteers set out once again to give back, this time for a maintenance and beautification project at the Boys & Girls Clubs of Boston Charlestown location. Volunteers were put to work around the Boys & Girls Club doing various projects such as painting, gardening and cleaning, all in support of the organization’s commitment to helping the young people in the community succeed academically, live healthy lifestyles and practice good citizenship.

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Toys for Tots/Gift Giving Drive: Over 1,600 Toys Collected

During the 2017 holiday season, CBRE Cares New England organized a Toys For Tots/Gift Giving Drive to allow local disadvantaged children and families to experience a happy holiday and provide them with a message of hope. Donation stations were established in all participating buildings where employees and tenants dropped off new gifts to benefit local kids in need. Over 1,600 gifts were collected on behalf of the U.S. Marine Corps Reserve Toys for Tots Foundation and other local charities.

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Despite large givebacks, demand remains steady in the suburban office market

Q3_BostonSuburban

Short on time? Here are the highlights of our third quarter Suburban Office MarketView. To request the full report, fill out the form at the bottom of this post.

BostonSuburbanImageQ3The Suburban Office market experienced a slow Q3 2017, recording 685,640 sq. ft. of negative absorption. A number of large blocks of space were returned throughout the market, primarily driven by relocations and added sublease space in the Route 128 West submarket. Fundamentals remain healthy despite these new vacancies, as demand remains steady and there are several large active requirements throughout the market.

Overall, availability and vacancy increased 30 basis points (bps) and 20 bps quarter-over-quarter to 21.3% and 19.0%, respectively, a direct result of the considerable added inventory.

 

Urban industrial heating up as speed-to-ship demand rises

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Short on time? Here are the highlights of our third quarter Greater Boston Industrial MarketView. To request the full report, fill out the form at the bottom of this post.

The Greater Boston Industrial market BostonIndustrialQ3sustained its momentum into the third quarter, recording almost 530,000 sq. ft. of absorption in Q3 2017 and over 1.6 million sq. ft. year-to-date. The outlook remains positive as strong rents, accompanied by declining availability and vacancy, continued through the third quarter.

Demand for industrial space closer to the city continued to increase, while some obsolete industrial product in the suburbs is under consideration for redevelopment. With urban rents increasing, companies have been looking to land close to the city along the Route 128 belt; however, due to tight space, some are being pushed out to the quieter Route 495 market.

Office remains steady while lab charges ahead

Q3Cambridge

Short on time? Here are the highlights of our third quarter Cambridge Office & Lab MarketView. To request the full report, fill out the form at the bottom of this post.

CambridgeOfficeLabQ3OFFICE MARKET
The Cambridge Office market posted its best three months of the year in the third quarter. Absorption was a respectable 59,000 sq. ft. and asking rents continued to rise, reaching $68.35 per sq. ft. Premium spaces saw interest; however, there is not much premium space on the market, and lower-quality options received a tepid reception. This caused availability and vacancy to increase over the last year. Expansions by existing tenants were the primary driver of demand, and two of the three largest office leases this quarter were deals of that type.

LAB MARKET
Demand for lab space in Cambridge is as strong as it’s ever been. The market saw positive absorption of over 684,000 sq. ft., the highest since the first quarter of 2012. It’s a welcome return to form after a few lackluster quarters, and brings year-to-date absorption up to 568,000 sq. ft. With such a large amount of absorption, availability and vacancy dropped from 11.7% and 4.5% last quarter to 6.6% and 2.0%, respectively. The spaces that came off the market were mostly premium offerings, leaving a small number of less desirable and less expensive options available, causing average asking rents to fall.

 

Boston goes from warm to hot in Q3

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Short on time? Here are the highlights of our third quarter Downtown Boston Office MarketView. To request the full report, fill out the form at the bottom of this post.BostonDowntownQ3

Activity continued to ramp up in the third quarter in the Downtown Boston Office market, which culminated in over half a million sq. ft. of positive absorption. All three of the core downtown submarkets contributed to this strong showing, and the trend continued into the smaller markets as well.

A good percentage of the absorption outcome was due to two headline-making moves: technology company PTC is relocating its headquarters from Needham and Alexion Pharmaceuticals relocating its headquarters from Connecticut, both landing at 121 Seaport Square, a 17-story tower that is currently under construction in the Seaport district. Construction began on the building without any major tenants lined up, but with these deals it is now 100% preleased. PTC’s 250,000 sq. ft. lease is the largest in Boston this year, and the firm will bring over 1,000 employees to the Seaport.

PTC and Alexion Pharmaceuticals are the latest in a string of prominent companies to relocate to Boston from the suburbs, with many of these tenants choosing the Seaport as their new home.

Spotlight on A: Next Development Destination for Boston’s Seaport

By Jonathan Freni, Senior Vice President/Partner, Advisory & Transaction Services

The third quarter of 2017 saw two more in a long line of large tenants announcing plans to relocate to Boston’s Seaport District. Both PTC and Alexion Pharmaceuticals will move to Skanska’s 121 Seaport when the new building delivers in early 2019, following suit to companies such as Amazon.com at Synergy’s 253 Summer Street, Red Hat at Bentall Kennedy’s 300 A Street and GE’s new headquarters. With the submarket quickly filling up with new tenants, demand for new development continues to increase. So where is the next hot spot for the next round of Seaport transplants?

Parkside on A, a 248,000 square foot development from the ownership team of CV Properties and Ares, combines a Seaport location with direct access to the holy grail of a tenant’s wish list: the MBTA Red Line. Additional highlights include on-site parking, potential branding opportunities, multiple roofdeck opportunities and an on-site amenities center. But don’t take our word for it, check out the video below and the newly launched website and see for yourself.

 

For leasing inquiries or more information on Parkside on A, please contact andy.hoar@cbre-ne.com, jonathan.freni@cbre-ne.com or timothy.howe@cbre-ne.com.