A relatively quiet quarter for the Greater Hartford Industrial market

Hartford Industrial

Short on time? Here are the highlights of our third quarter 2018 Greater Hartford Industrial MarketView. To request the full report, fill out the form at the bottom of this post.

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The Greater Hartford Industrial market in Q3 2018 saw a small contraction of 6,403 sq. ft. of negative absorption, down from 235,152 sq. ft. of positive absorption in the second quarter. The vacancy rate remained flat at 8.3%, while the availability rate increased marginally to 8.8%. Meanwhile, average asking rents in the market decreased to $5.17 per sq. ft. NNN.

Both the Hartford South and Hartford West submarkets drove the leasing activity in the Greater Hartford Industrial market.

 

Greater Hartford Office market ends Q3 2018 with another quarter of positive absorption

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Short on time? Here are the highlights of our third quarter 2018 Greater Hartford Office MarketView. To request the full report, fill out the form at the bottom of this post.

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The Greater Hartford Office market continued its trend of positive absorption from last quarter concluding with 18,702 sq. ft. of positive net absorption for Q3 2018. The vacancy rate for Q3 decreased marginally to 17.7%, and the availability rate increased to 19.5%. Meanwhile, average asking rents increased to $20.03 per sq. ft. gross making it the second consecutive quarter of rent growth for the Greater Hartford Office market.

Greater Boston Industrial sees tempered demand in Q3, rents continue to rise

Industrial

Short on time? Here are the highlights of our third quarter 2018 Boston Industrial MarketView. To request the full report, fill out the form at the bottom of this post.

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360 Second Avenue, Waltham

The lack of large transactions in Q3 2018 and tempered demand led the Greater Boston area to a relatively flat quarter statistically, bringing the year-to-date total to just over 720,000 sq. ft. of positive absorption. Overall availability and vacancy ended the quarter declining to 9.1% and 6.1%, respectively, with average asking rents increasing to $9.76 per sq. ft. largely driven by the inner core markets. In a market that has been historically tight, the 2.0 million sq. ft. of new construction currently underway has become a welcome relief valve for dwindling options despite the continued rise in construction costs.

Investment activity this summer was strong in all submarkets, which is an indicator that the market continues to garner continued interest from various capital sources. The outlook on the overall economy remains positive.

A strong start to the second half of 2018

Suburban.PNGShort on time? Here are the highlights of our third quarter 2018 Boston Suburban Office MarketView. To request the full report, fill out the form at the bottom of this post.

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9-11 Hampshire Street, Mansfield

The Greater Boston Suburban Office market experienced a strong Q3 2018 as 912,000 sq. ft. of space was absorbed in each of the three metros contributing over 100,000 sq. ft. of positive absorption. The Metro North bolstered the overall market as several sizable technology firms signed deals in the Route 3 North submarket. The Metro South experienced its healthiest quarter of the year as both the Route 128 South and Route 495 South submarkets saw strong interest from tenants and life science firms, which continued to drive demand in the Metro West. With more than 6.4 million sq. ft. of active occupier demand in the Suburban market, more than 37% of the requirements are from the tech sector and 20% from life science firms.

Co-working and shared office space operators are beginning to surge into the suburbs. While some of the largest national operators have not yet ventured into the suburbs like they have downtown, a number of smaller, independent operators have begun to open locations throughout the suburban landscape and will certainly be a trend to watch in the coming quarters.

Overall, the Suburban market availability fell 50 basis points (bps) quarter-over-quarter to 21.2%, and rents increased to $23.82 per sq. ft. gross.

Cambridge continues its upward trajectory

Camridge marketviewShort on time? Here are the highlights of our third quarter 2018 Cambridge Office/Lab MarketView. To request the full report, fill out the form at the bottom of this post. 

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Rendering: 314 Main Street

OFFICE MARKET

The Cambridge Office market had a strong third quarter boasting the highest absorption since Q1 2015 at 274,000 sq. ft. Availability dropped from 11.3% last quarter to 9.5% by the end of Q3. Vacancy rose modestly to 4.2%. Average asking rents present a more complex case, however. On the surface, it appears rents dropped because they decreased from $85.57 per sq. ft. in Q2 to $82.23 per sq. ft. in Q3. However, rents in all three submarkets rose significantly. West Cambridge saw rents increase from $51.80 per sq. ft. to $55.43 per sq. ft., Mid Cambridge saw rents jump from $56.49 per sq. ft. to $67.90 per sq. ft. and East Cambridge saw rents grow from $95.26 per sq. ft. to $96.67 per sq. ft. However, a modest amount of less expensive space came on the market in West and Mid Cambridge in Q3 while East Cambridge saw 313,000 sq. ft. of absorption. In this case, lower average asking rents are an indicator of increased market strength because much of the higher-priced availability was leased. This phenomenon is unusual in less constrained markets, but in Cambridge it has become a recurring theme.

LAB MARKET

Q3 2018 was another record-breaking quarter for the Cambridge Lab market. The city saw average asking rents reach $85.10 per sq. ft. NNN, vacancy drop to 1.2% and almost 180,000 sq. ft. of positive absorption. Absorption for the year is now over 760,000 sq. ft. in a market of only 13 million sq. ft. With so little space left in the city today, that absorption figure likely won’t crack 2012’s record of 1.5 million sq. ft. by year end. However, rents have reached a new record at $85.10 per sq. ft. NNN. In East Cambridge, average asking rents reached $92.90 per sq. ft. NNN by the end of the quarter, and vacancy in that submarket fell to 0.9%.

 

Property Spotlight: 225 Carando Drive

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Built in 1991, CBRE/New England is pleased to offer 225 Carando Drive, a ±46,148 SF building in Springfield’s Industrial A zone, for lease or for sale at $3.5 million. Previously occupied by a printed circuit board assembler, the building is suitable for high-tech assembly, manufacturing and indoor agriculture. The building is fully air-conditioned, serviced with heavy-duty power, offers parking for 100 cars and additional land.

The property is located within Carando Industrial Park, just one mile from Interstate 291 and three miles from Interstates 90 (Massachusetts Turnpike) and 91.

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The building includes 25′ x 50′ column spacing, three loading docks and a clear height of 17-20′. Zoned I-2, 225 Carando Drive also offers two cafeterias and a training room.

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For additional information, please contact CBRE/NE’s John Reed.

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Property Spotlight: Rising Sun Mills

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Located at 166 Valley Street, Rising Sun Mills is a ±313,000 SF mixed-use complex with 135 residential units and ±130,000 SF of commercial space originally developed by a partnership of TARC and Baltimore-based Struever, Eccles & Rouse. Rising Sun Mills is easily accessible from Routes 6 and 10 as well as Interstate 95. The campus has 135 loft-style residential units and offers office tenants a parking ratio of 4.0/1,000 SF. The well-landscaped site features a waterfall, walking and bike paths along the Woonasquatucket River that also includes a fish ladder and kayak launch. In addition to the on-site Cafe at Easy Entertaining, there is an incredible selection of local and regional foods in Olneyville Square, Atwells Avenue and on Broadway. The property recently underwent lobby renovations in addition to tenant improvement projects. Currently, there is approximately 23,000 SF of commercial space available to lease with suites ranging from 2,000-18,320 SF.

The history of Rising Sun Mills started in 1764, when Rhode Island’s first paper factory was established by John Waterman, just north of the Rising Sun Mills site. By 1867, the first dam at Rising Sun was built, likely by William Fletcher to set up his worsted wool business. Fletcher’s original mill was destroyed by fire. He built the original National and Providence Worsted Millers in 1887 on the grounds of the original mill. The mills employed more than 750 people and produced more than 900,000 yards of worsted goods yearly. By 1893 Fletcher’s National and Providence Worsted Mills became the largest consumer of wool in the U.S.

National and Providence Worsted Mills_Complete imageFor leasing inquires, contact CBRE/New England’s Andrew Galvin.

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