495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 SOUTH

128 WEST

NO

RTH OFFICE MARKET

Q32016

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

Net Absorption Vacancy

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

Route 128 North Route 128 Northwest Route 495 North Route 495 Northeast

‐ Vacancies in Route 128 North are the lowest among the northern markets, at 9.9%. 

‐ Average lease rates in Route 128 Northwest maintains a 45% premium compared to the north market average.

‐ Comcast recently moved into its new regional headquarters at 5 Omni Way in Chelmsford.

‐ Stratus Technologies took occupancy at the recently renovated Mill & Main in Maynard. The firm vacated 287,000 square feet at 111 Powdermill Road also in Maynard.

‐ ConforMIS plans to relocate its headquarters from Bedford to Billerica; leasing 45,043 square feet at 600 Technology Park Drive.

‐ PIedmont Office Realty Trust acquired the 200,605‐square‐foot 1 Wayside Road in Burlington for more than $67 million or $336.SF. This represents a 21% increase from the property's 2010 sale price.

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Enel Green Power 100 Brickstone Square Andover 65,163

ConforMIS 600 Technology Park Drive Billerica 45,403

Akamai Technologies 5 Technology Park Drive Westford 41,782

Polartec Fabrics 300 Brickstone Square Andover 28,940

Mirror Image Internet* 2 Highwood Drive Tewksbury 15,900

*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 North 13,711,022 145,000 1,285,025 77,661 9.9% 84,366 182,498 $22.17

Route 128 Northwest 13,527,659 280,000 1,716,572 124,807 13.6% 64,712 (124,421) $32.17

Route 495 North 13,173,367 0 2,994,730 153,640 23.9% (264,344) (459,422) $18.32

Route 495 Northeast 6,388,715 95,930 1,512,797 40,002 24.3% 75,528 76,654 $18.00

TOTAL 46,800,763 520,930 7,509,124 396,110 16.9% (39,738) (324,691) $22.08

FEATURED DEAL

9,057 SF130 NEW BOSTON STREET, WOBURN

NAI Hunneman completed three lease transactions totaling 9,057 square feet at KS Partners-owned 130 New Boston Street in Woburn. Leases executed by Sorenson Communications, Emerging Display Technologies and Adimec Electronic Imaging brought the building’s occupancy to 91%.

STATISTICS

SUBMARKET TRENDS

• Vacancies in Route 128 North are the lowest among

the northern markets, at 9.9%.

• Average lease rates in Route 128 Northwest maintain

a 45% premium compared to the north market

average.

• Comcast recently moved into its new regional

headquarters at 5 Omni Way in Chelmsford.

• Stratus Technologies took occupancy at the recently

renovated Mill & Main in Maynard. The firm vacated

287,000 square feet at 111 Powdermill Road also in

Maynard.

• ConforMIS plans to relocate its headquarters from

Bedford to Billerica; leasing 45,043 square feet at 600

Technology Park Drive.

NORTH OFFICE MARKET

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

Submarket Total Inventory Under Construction Direct Vacant Sublease VacantRoute 128 North 13,711,022 145,000 1,285,025 77,661Route 128 Northwest 13,527,659 280,000 1,716,572 124,807Route 495 North 13,173,367 0 2,994,730 153,640Route 495 Northeast 6,388,715 95,930 1,512,797 40,002Total 46,800,763 520,930 7,509,124 396,110

Notable TransactionsAddress City Size

Enel Green Power 100 Brickstone SquareAndover 65,163           Conformis 600 Technology Park DBillerica 45,403           Akamai Technologies 5 Technology Park DriWestford 41,782           Polartec Fabrics 300 Brickstone SquareAndover 28,940           Mirror Image Internet 2 Highwood Drive Tewksbury 15,900           *Renewal

Featured Deal

Vacancy and Net Absorption

NAI Hunneman completed three lease transactions totaling 9,057 square feet at KS Partners‐owned 130 New Boston Street in Woburn. Leases executed by Sorenson Communications, Emerging Display Technologies and Adimec Electronic Imaging brought the building's occupancy to 91%. 

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

Net Absorption Vacancy

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

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantClass A 12,017,757 1,263,595 685,193 295,287Class B 9,487,185 127,000 859,456 112,799Total 21,504,942 1,390,595 1,544,649 408,086

Notable TransactionsTenant Address City SizeTesaro 1000 Winter Street Waltham 122,000 Trinity Partners 230 Third Avenue Waltham 45,000 Dun & Bradstre 610 Lincoln Street Waltham 30,000 Yardi 400 Fifth Avenue Waltham 26,020 Bridge Energy 75-95 Wells Avenue Newton 7,372 *Renewal

Featured Deal

Vacancy and Net Absorption

NAI Hunneman assisted Yardi, a real estate software firm, in relocating its operations to 400 Fifth Avenue in Waltham. The 26,020-square-foot lease represents a significant expansion from Yardi's previous office at 307 Waverley Oaks.

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

Net Absorption Vacancy