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

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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

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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.

It’s almost time to say goodbye to our 2017 Summer Interns

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Groundbreaking: Brigham and Women’s Health Care Center, Westwood

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On Monday, July 17, 2017, the CBRE/New England Owner’s Project Management & Development team held a groundbreaking ceremony for their first ground-up construction project—a new 30,000 SF Brigham and Women’s Health Care Center in the University Station Development in Westwood, MA. The medical office building will house primary care, specialty care on a rotating basis, and an urgent care clinic.

“With a variety of services under one roof, the new location will offer quality care closer to home for our many patients from the Westwood area,” said William C. Johnston, Senior Vice President of Ambulatory Services at Brigham and Women’s Hospital.

The Center is located at 100 Brigham Way, bordering the Route 128 Amtrak and MBTA Station stop for easy accessibility. The expected grand opening is fall 2018.

Project Team:

  • Owner’s Project Manager: CBRE/New England
  • General Contractor: Consigli Construction
  • Architect/Engineer: CannonDesign
  • Civil Engineer: vhb
  • Legal: Sherin & Lodgen
  • Brokerage: McCall & Almy

For more information about CBRE/NE’s Project Management services, please contact opm@cbre-ne.com.

Hartford’s Dunkin’ Donuts Park Named Best Double-A Ballpark in America

by Reid Leveillee and Cameron Veidenheimer, 2017 CBRE/NE Hartford Interns

Dunkin’ Donuts Park, in its maiden season as home of the Hartford Yard Goats, has been named the Best Double-A Ballpark in America, per a recent poll conducted by Ballpark Digest. The online poll—which began May 30th before concluding on June 20th—achieved participation by 178,000 fans, with each of the 30 Double-A ballparks in the nation considered. Dunkin’ Donuts Park faced fierce competition (with Pennsylvania club Altoona Curve coming in second) and is a testament to the draw of the Yard Goats’ new home. The park has already sold out 15 times this season, including 11 of the last 17 games.HFD Aerial 092016_0251-CROPPED (002)The park’s design emphasizes socialization as a critical part of the game experience, with a multitude of concession options on offer, as well as amenities including the Travelers Fun Zone. This endeavor clearly has resonated with visitors to Dunkin’ Donuts Park, and their rapid incorporation of the park into the center of Hartford’s entertainment scene indicates the beginning of an exciting new period in Downtown North. The stadium’s function as another downtown entertainment option further provides employees with greater opportunity to meet, mingle and network in this evolving 18-hour city.

The ramifications of a revitalization of this section of the city are substantive and positive: increased vibrancy and available amenities in the area will be a boon for businesses as Hartford’s CBD expands northwards, furthering a collective optimism regarding the city’s future.