On May 17, 2017, the New England Venture Capital Association (NEVCA) hosted one of Boston’s biggest award shows. For the past five years, the NEVYs have brought together the growing Tech and Life Science communities, all under one roof. This year’s event was held at Boston’s House of Blues.
Awards were presented to Tech and Life Science finalists in the following categories:
Healthcare & Life Science
Congratulations to all of this year’s NEVY nominees and award winners!
For more information about the NEVCA and CBRE/New England’s expertise in Tech and Life Science communities, please reach out to Adam Brinch or Nick Amarante. Follow the NEVCA on Twitter for updates on upcoming events and other networking opportunities.
Short on time? Here are the highlights of our first quarter Downtown Boston Office MarketView. To request the full report, fill out the form at the bottom of this post.
It was a relatively quiet quarter for the Downtown Boston Office market, echoing a theme seen across many of the Greater Boston submarkets—but with an unemployment rate of only 3.7% as of February, Boston’s positioning remains strong.
Vacancy was up to 8.6%, the highest it has been in three years, but asking rents continued to edge upwards.
Bifurcation of Class A and B rental growth has slowed: while in the past year Class B properties had seen much greater gains in comparison to Class A, in Q1 2017, both saw only modest gains.
Most of the activity in the quarter was seen in value low-rise Class A space in the Back Bay. This type of space can be particularly appealing to Cambridge tenants who want to remain in the urban core, but are being priced out of the options on the other side of the Charles River.
By Taidgh McClory, Managing Director/Partner, Advisory & Transaction Services
Every year, the Commercial Brokers Association (CBA) honors the best and brightest in the Greater Boston brokerage industry, highlighting all-star deals and individual achievements in several different categories. This is the equivalent of our academy awards for all our brokerage teams’ accomplishments as recognized by our industry peers.
This year CBRE/New England stood out as a dominant force at the awards, taking home five out of a potential 11 awards. Topping the list of this year’s recipients was our Rising Star of the Year, Suzie Brown. Her hard work and effort earned her the top award amongst a competitive field of 10 other finalists.
On behalf of the entire company, congratulations to Suzie and all this year’s winners, our clients and the finalists! We continue to be proud of our employees, our collaboration and our market leadership as a
Below are the CBRE/NE finalists for 2016’s CBA Achievement Awards.
Rising Star of the Year
Vice President, Urban Team – Advisory & Transaction Services
Community Impact Deal of the Year
Industrial Deal of the Year
Office Deal of the Year – Suburban
Kronos at Cross Point
900 Chelmsford Street, Lowell, MA
Anchor Line Partners and Farallon Capital Management
Mark Reardon, Peter Dominski, Alex Plaisted, Benjamin Roopenian, Diane Harris
Retail Deal of the Year
Prudential Center, Boston, MA
Boston Properties (also this year’s Landlord of the Year)
CBRE/New England works with several clients to pursue WiredScore Certification, the international standard for cutting-edge internet connectivity in office buildings. Recently, three office buildings in our leasing portfolio within the Greater Boston area have achieved Platinum and Gold Wired Certification for having best-in-class connectivity infrastructure—One Boston Place and 33 Arch Street, both owned by TH Real Estate, and 451 D Street, owned by a joint venture between Meritage Properties and Commonwealth Ventures.
To achieve Wired Certification, properties must meet a rigorous set of standards developed in conjunction with the top minds in the telecom and commercial real estate industries. The accreditation has proven to be a popular accolade amongst Class A and Class B buildings, citing further claim to which assets are more efficiently set up for today’s demanding tenancies.
“Network connectivity has become increasingly more important to corporate occupiers as the adoption of cloud computing, office collaboration, and telecommunicating gains momentum. It is imperative for building owners to provide their tenants with best-in-class connectivity options to stay relevant and competitive in the market. WiredScore has provided a great platform for owners to showcase their technology infrastructure in a concise and standardized manner.” – CBRE/NE’s Rich Modliszewski
By distinguishing buildings with the best tech capabilities, Wired Certification makes information about internet connectivity more transparent than ever before, enabling commercial buildings to benchmark themselves against a single standard and upgrade their offerings and allowing businesses to identify the best buildings in which to grow.
Next up in our Boston Market Overview recap series, our attention turns to representatives from our Capital Markets team. Brian Doherty, Senior Vice President/Partner, and Biria St. John, Vice Chairman/Partner, reflected on 2016 and selected their draft picks for 2017.
This past year, Boston made the list for “Best Metros for Investment 2016,” breaking into the Top 10 after previously being ranked out of the Top 15.
* denotes metro previously not listed in the Top 15; CBRE Research, Global Investor Intentions Survey 2016
Draft Pick #1: Brian’s 2016 MVP = Urban Core & Value-Add Office
“Boston had the home field advantage in 2016; some huge wins for a lot of Boston-based sponsors included Paradigm at 101 Tremont and Synergy at 101 Summer. These groups had great game plans, flawless execution, plus institutional exits.” – BD
Draft Pick #2: Biria’s Multifamily 2016 MVP = Value-Add Suburban & Urban Infill
“The appeal for value-add space can be distilled down into a few key factors: fundamentals are still solid (outstanding employment market and inward migration) plus basis play that offers stability, durability, but upside with the opportunity to enhance the returns through upgrades.” – BSJ
Draft Pick #3: Biria’s Multifamily 2017 Player to Watch = Suburban Class B/C & Urban Infill
“Millennials want an authentic neighborhood and like local flavor, not the sterile environment that is anchored by national chains and looking to catch a break on the $4.00-5.00/SF rents in downtown Boston.” – BSJ
Draft Pick #4: Brian’s Commercial 2017 Player to Watch = Industrial of All Shapes & Sizes
“Looking back on 2016 and the deals we worked on, industrial product flew off the shelf. There were deep bidder pools, strong institutional interest and buyer support with multiple rounds of offers.” – BD
Draft Pick #5: Brian’s Commercial Flex Pick = Fringe Core Opportunity Plays
“Today, the market is a bit in flux with a Goldilocks Phenomenon occurring. The urban core appears to be getting more expensive by the day and the suburbs feel a bit too risky right now.” – BD
Draft Pick #6: Biria’s Multifamily Flex Pick = Unique Class A Core Assets
“Because of a shift in capital towards value-add and core-plus opportunities, there is the opportunity to pick up some high-quality core assets at slightly higher yields than a year ago.” – BSJ
Stay tuned for our next post, where we will reveal what our Rhode Island experts covered at this year’s CBRE/NE Rhode Island Market Overview.
Did you miss the beginning of our BMO recap series? Click on the following link for Parts 1 and 2.
In this next installment of our Boston Market Overview recap series, we look to our Suburban market experts. Alison Powers, First Vice President, and Andy Majewksi, Executive Vice President/Partner, have been following suburban migration for some time now. But why is this happening? What are the numbers behind these trends? Their draft picks tell all…
Draft Pick #1: Alison’s 2016 MVP = Life Sciences
“In 2016, over 1.3 million square feet was leased to the life sciences sector in the suburbs outside of Boston and Cambridge. That’s a 35% increase in life sciences leasing activity from 2015 resulting in one million square feet of positive absorption in the suburbs.” – AP
Draft Pick #2: Andy’s 2016 MVP = Industrial
“Despite negative absorption on the office front, the industrial market experienced over 550,000 SF of positive absorption, which marks a 10-year high for the Greater Boston Industrial market. This is why my MVP pick is industrial. Where else on Route 128 can you find a vacancy rate of 6% and 18% rent growth? So what’s causing this upswing? It’s really a function of industrial migration in and migration out.” – AM
Draft Pick #3: Andy’s 2017 Player to Watch = New Construction
“What do Beverly, Waltham, Watertown, Lexington and Newton have in common? New construction and, in some cases, major renovation—there are currently 10 projects across these five times in the works, demonstrating that there are no boundaries to new construction in the suburbs. ” – AM
Draft Pick #4: Alison’s 2017 Player to Watch = Organic Growth
“There is continued migration outward from Cambridge and Boston of life sciences and even non-life sciences companies that need to accommodate expansion.” – AP
Draft Pick #5: Andy’s Flex Pick = Millennials Aging
“In 2017 the largest cohort of millennials will turn 26. That’s important because it’s the same age that young people start to get more serious about their careers, housing and their future.” – AM
Draft Pick #6: Alison’s Flex Pick = Generation Z
“Generation Z is 25% of the current population. The oldest members of Generation Z are turning 21 years old next year and will be entering the workforce before you know it. Generation Z is comprised of 60 million people strong—outnumbering millennials by nearly one million—and they are going to boost the suburbs.” – AP
Stay tuned for our next post, where we will reveal the draft picks chosen by our Capital Markets team at this year’s Boston Market Overview.
Did you miss our first installment of the BMO recap series? Catch up here.