495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 SOUTH

128 WEST

WEST INDUSTRIAL M

ARKETQ4

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

Q4

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q4 2016

Class A&B Rents

Submarket Trends

$0

$2

$4

$6

$8

$10

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

Framingham-Natick Route 495 West

‐ With six consecutive quarters of positive absorption, vacancies in the West submarkets have fallen precipitously since mid‐2015; reaching 6.1% at the end of 2016.

‐ Murata Power Solutions executed a full‐building lease at 129 Flanders Road in Westborough; totaling 29,200 square feet.

‐ First Colony Development recently broke ground on a 65,000‐square‐foot Flex/R&D building at 200 Crowley Drive in Marlborough on a speculative basis. Delivery is set for mid‐2017.

‐ DHL Global Mail took occupancy of 60,520 square feet at 1‐5 Sassacus Drive in Westborough.

‐ Year‐over‐year asking rents increased by more than 8% in the West submarkets, with Route 495 West seeing a majority of the gains.

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

Total Inventory Under Construction Direct Vacant Sublease VacantFramingham‐Na 3,148,801 0 229,524 40,000Route 495 West 15,292,052 65,000 752,592 101,614Total 18,440,853 65,000 982,116 141,614

Notable TransactionsTenant Address City SizeMurata Power S129 Flanders Road Westborough 29,200           Mintra Corpora 417 South Street Marlborough 21,600           MLM Logistics 25 Brigham Street Westborough 4,000             

*Renewal

Featured Deal

Vacancy and Net Absorption

In October, Feris Development acquired the 55,515‐square‐foot 5 Beeman Road in Northborough from H.N. Gorin for $9.3 million or $168 per square foot. The cap rate on this transaction was 7.96%. The property, which was built in 2003, is fully‐occupied by Iron Mountain.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-200,000

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

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

Net Absorption Vacancy

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Murata Power Solutions 129 Flanders Road Westborough 29,200

Mintra Corporation 417 South Street Marlborough 21,600

MLM Logistics 25 Brigham Street Westborough 4,000

NOTABLE TRANSACTIONS

TOTAL INVENTORY

(SF)

UNDER CONSTRUCTION

(SF)

DIRECT VACANT

(SF)

SUBLEASE VACANT

(SF)

TOTAL VACANCY

RATE

Q4 NET

ABSORPTION (SF)

YTD NET

ABSORPTION (SF)

ASKING RENT ($/SF)

Framingham-Natick 3,148,801 0 229,524 40,000 8.6% 5,881 30,767 $6.72

Route 495 West 15,292,052 65,000 752,592 101,614 5.6% 89,915 329,928 $8.75

TOTAL 18,440,853 65,000 982,116 141,614 6.1% 95,796 360,695 $8.27

FEATURED DEAL

55,515 SF5 BEEMAN ROAD, NORTHBOROUGH

In October, Ferris Development acquired the 55,515-square-foot 5 Beeman Road in Northborough from H.N. Gorin for $9.3 million or $168 per square foot. The cap rate on this transaction was 7.96%. The property, which was built in 2003, is fully-occupied by Iron Mountain.

STATISTICS

WEST INDUSTRIAL MARKET

SUBMARKET TRENDS

• With six consecutive quarters of positive absorption,

vacancies in the West submarkets have fallen precipitously

since mid-2015; reaching 6.1% at the end of 2016.

• Murata Power Solutions executed a full-building lease at

129 Flanders Road in Westborough; totaling 29,200 square

feet.

• First Colony Development recently broke ground on a

65,000-square-foot Flex/R&D building at 200 Crowley Drive

in Marlborough on a speculative basis. Delivery is set for

mid-2017.

• DHL Global Mail took occupancy of 60,520 square feet at

1-5 Sassacus Drive in Westborough.

• Year-over-year asking rents increased by more than 8%

in the West submarkets, with Route 495 West seeing a

majority of the gains.