495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 WEST

SOUTH OFFICE M

ARKETQ3

2016

ASKING RENT

LEASING ACTIVITY

12-MONTH ABSORPTION

SUBLEASE VACANCY

DIRECT VACANCY

STATISTICS OVER THE LAST 12 MONTHS

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3 2016

Class A&B Rents

Submarket Trends

$14

$16

$18

$20

$22

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Route 128 South Route 495 South

‐ The South markets have absorbed more than 480,000 square feet of office space since Q4 2015; allowing vacancies to end the third quarter 330 basis points below year‐ago levels.

‐ Tenant activity remains particularly strong in areas along Route 128, including Dedham and Westwood, as firms look for value, amenities and public transit access.

‐ Southshore Charter School took occupancy of 22,458 square feet at 700 Longwater Drive in Norwell, and Healthcare Financial relocated to 22,541 square feet at 2 Heritage in Quincy. 

‐ RREEFF purchased 40 Allied Drive, a 64,127‐square‐foot medical office building, in Dedham for $34 million or $530/SF from Shields Health Care, while Ocean Spray sold their 90,000‐square foot headquarters in Lakeville to Fairway Equities for $40 million or $444/SF.

ArrowsDirect Vacancy Sublease Vacancy 12‐month Absorption Leasing ActivityAsking RentDown Flat Up Down Up

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantRoute 128 Sout 13,870,355 0 1,572,233 63,361Route 495 Sout 2,894,377 0 407,977 17,301Total 16,764,732 0 1,980,210 80,662

Notable TransactionsTenant Address City SizePartylite Gift 600 Cordwainer DriveNorwell 25,000           Sentient Jet 3 Batterymarch Park Quincy 22,080           Topco Associate3 Batterymarch Park Quincy 17,940           Altra Industrial  300 Granite Street Braintree 15,200           Compass Health400 Crown Colony Dri Quincy 3,025             *Renewal

Featured Deal

Vacancy and Net Absorption

The Union Point redevelopment, formerly Southfield, in Weymouth landed its first major commercial tenant with Prodrive Technologies. The Dutch robotics company has agreed to lease 300,000 square feet for its U.S. headquarters — slated to open at the end of 2017. Prodrive joins Deja Vu Concepts, a software startup that leased 30,000 square feet of office space at the former Naval Air Base earlier this year.

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

-200,000

-100,000

0

100,000

200,000

300,000

400,000

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Net Absorption Vacancy

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Partylite Gift 600 Cordwainer Drive Norwell 25,000

Sentient Jet 3 Batterymarch Park Quincy 22,080

Topco Associates* 3 Batterymarch Park Quincy 17,940

Altra Industrial Motion* 300 Granite Street Braintree 15,200

Compass Health Brands 400 Crown Colony Drive Quincy 3,025

*Renewal

NOTABLE TRANSACTIONS

TOTAL INVENTORY

(SF)

UNDER CONSTRUCTION

(SF)

DIRECT VACANT

(SF)

SUBLEASE VACANT

(SF)

TOTAL VACANCY

RATE

Q3 NET

ABSORPTION (SF)

YTD NET

ABSORPTION (SF)

ASKING RENT ($/SF)

Route 128 South 13,870,355 0 1,572,233 63,361 11.8% 114,010 129,860 $20.59

Route 495 South 2,894,377 0 407,977 17,301 14.7% 36,286 31,313 $18.81

TOTAL 16,764,732 0 1,980,210 80,662 12.3% 150,296 161,173 $20.23

FEATURED DEAL

300,000 SFUNION POINT, SOUTH WEYMOUTH

The Union Point redevelopment, formerly Southfield, in South Weymouth landed its first major commercial tenant with Prodrive Technologies. The Dutch robotics company has agreed to lease 300,000 square feet for its U.S. headquarters. Prodrive will join Deja Vu Concepts at the former Naval Air Base.

STATISTICS

SUBMARKET TRENDS

• The South markets have absorbed more than 480,000

square feet of office space since Q4 2015; allowing

vacancies to end the third quarter 330 basis points

below year-ago levels.

• Tenant activity remains particularly strong in areas

along Route 128, including Dedham and Westwood, as

firms look for value, amenities and public transit access.

• Southshore Charter School took occupancy of 22,458

square feet at 700 Longwater Drive in Norwell, and

Healthcare Financial relocated to 22,541 square feet at

2 Heritage in Quincy.

• RREEFF purchased 40 Allied Drive, a 64,127-square-

foot medical office building, in Dedham for $34 million

or $530/SF from Shields Health Care, while Ocean

Spray sold their 90,000-square foot headquarters in

Lakeville to Fairway Equities for $40 million or $444/SF.

SOUTH OFFICE MARKET