2015 Colliers International 36th Annual Seminar

2015 Colliers International 36th Annual Seminar

Slides from Colliers | Boston's Trends in Real Estate seminar held on January 15, 2015.

Transcript

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  9. “SONOS is the latest tech firm to head to Downtown

    Crossing.” (Boston Globe) “Acquia is Moving to Boston from the ‘Burbs into a Space Double the Size.” (BostInno) “Boston Properties sells stakes in two Boston buildings to Norwegian sovereign wealth fund.” (BBJ) “Invesco Wins ‘War’ for Crosspoint’s 427,775 SF Seaport Package…Listing Could Top $180 Million.” (Real Reporter) Making Headlines... “Oxford Properties and JP Morgan complete purchase of local office buildings.” (Boston Globe) “Boston’s Seaport District held up as example of how to build a 21st century city.” (BBJ)
  10. ‘BURBS CAMBRIDGE BOSTON Migration...

  11. BOSTON No Boundaries...

  12. Signed… ...Delivered FINANCIAL DIST. FINANCIAL DIST. DOWNTOWN XING BACK BAY

    BACK BAY BACK BAY FINANCIAL DIST. FINANCIAL DIST. SEAPORT SEAPORT
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  15. Back Bay 20th FLOOR

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  18. 10.9% 8.3% -20% -15% -10% -5% 0% 5% 10% 15%

    20% -2000 -1500 -1000 -500 0 500 1000 1500 2000 SF (000s) Absorption Vacancy (r) Forecast
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  20. Unsung Hero…

  21. Spec? Spec? Big Blocks Going…

  22. Spec Development…

  23. $$$ A & B Rents…

  24. Evolution Continues…

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  29. 93,000 SF 71,000 SF 61,000 SF

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  33. v 50,000 SF v 40,000 SF v 50,000 SF v

    40,000 SF v 45,000 SF v 35,000 SF v 40,000 SF
  34. EXISTING BUILDINGS B-T-S T Kendall Square $70 - $88 $90

    T Lechmere $59 - $63 $69 T Alewife $37 - $46 $53 NorthPoint (10-year average) (10-year average) (5-year average) (10-year average) (10-year average) (10-year average)
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  37. 270 -89 265 134 -85 485 -552 1,035 13.6% 16.4%

    10.3% 18.9% 9.1% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% -1,200 -1,000 -800 -600 -400 -200 0 200 400 600 800 1,000 1,200 Absorption Vacancy (000s SF)
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  39. 270 -89 265 134 -85 485 -552 1,035 13.6% 16.4%

    10.3% 18.9% 9.1% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% -1,200 -1,000 -800 -600 -400 -200 0 200 400 600 800 1,000 1,200 Absorption Vacancy (000s SF)
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  41. v 80,000 SF v 40,000 SF v 80,000 SF v

    35,000 SF v 60,000 SF
  42. EXISTING BUILDINGS B-T-S T Kendall Square $71 $89 T Lechmere

    N/A $79 T Alewife $50 $52 NorthPoint (7-year average) (7-year average) (15-year average) (15-year average) (15-year average)
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  49. Commercial: Academic: Residential: 980,000 SF 800,000 SF 240,000 SF

  50. As-Is Planned

  51. Federal Government

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  70. S P E C

  71. S P E C

  72. S P E C

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  74. 610 Lincoln Street Waltham 87,000 SF 81 Wyman Street Waltham

    81,000 SF 93 Worcester Road Wellesley 80,000 SF 275 2nd Avenue Waltham 155,000 SF 175 Wyman Street Waltham 83,500 SF 275 Wyman Street Waltham 83,000 SF 191 Spring Street Lexington 150,000 SF 200 Wheeler Road Burlington 110,000 SF 78 Blanchard Road Burlington 84,000 SF 4 Burlington Woods Burlington 100,000 SF
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  107. 0 5,000 10,000 15,000 20,000 25,000 Source: Real Capital Analytics

    & Colliers International Rolling 12 Month Quarterly Total
  108. 0 50 100 150 200 250 Source: Real Capital Analytics

    & Colliers International
  109. Downtown & Cambridge Central 128 Suburbs

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  111. Canada 100 High Street 125 Summer Street 60 State Street

    225 Franklin Street One Memorial Drive Norway 100 Federal Street Atlantic Wharf One Beacon Street Switzerland 51 Melcher Street 51-63 Franklin Street Japan 28 State Street Ireland 469 Washington Street
  112. 100 High Boston 125 Summer Boston 225 Franklin Boston 60

    State Boston One Memorial Cambridge
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  115. 399 Boylston Street 100 High Street 100 Cambridge Street

  116. 57% of suburban trades to private investors Seeking value in

    $/SF & yield Belief in VALUE is key! Suburban investment predominantly PRIVATE & DOMESTIC sources
  117. Buyer: Seller: 1 Van De Graaff Drive Burlington 158,000 SF

    $247/SF 5 Wall Street Burlington 182,000 SF $343/SF 800 South Street Waltham 206,000 SF $275/SF 850-852 Winter Street Waltham 180,000 SF $404/SF
  118. Constrained market with very high level of demand for anything

    industrial! Even Class B, non-warehouse is being heavily pursued. New listing at 326 Ballardvale Street indicative of huge level of interest in the market! 326 Ballardvale Street Wilmington
  119. Constrained market with very high level of demand for anything

    industrial! Even Class B, non-warehouse is being heavily chased. New listing at 326 Ballardvale Street indicative of huge level of interest in the market! Pricing for Class A warehouse has reached new HIGHS!
  120. Pricing for Class A warehouse has reached new HIGHS! 55

    Lyman Street, Northborough 260,000 SF Seller: Buyer: 20 Freedom Way, Franklin 235,000 SF Seller: Buyer:
  121. 25 Industrial Avenue, Chelmsford 50,000 SF Seller: Buyer: Pricing for

    Flex space has also reached new HIGHS! 267 Lowell Road, Hudson, NH 121,000 SF Seller: Buyer:
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  128. “Chain store restrictions will now apply to stores that have

    11 or more locations worldwide.” (RACKED) “…there is more pressure on our small businesses on mid-Market… workers and new residents in the area are in favor of having more unique independent stores.” (SF Examiner) “…the 20,000-square-foot threshold [is] a “reasonable compromise that should not burden small businesses trying to get a foothold in a neighborhood retail district.” (SF GATE)
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  131. Boston Atlanta West Hollywood Greenwich The Gallery at the Historic

    Museum of Natural History The Gallery at the Estate in Buckhead The Gallery on Melrose Avenue The Gallery at the Historic Post Office
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  135. Locke-Ober Rosebud Barcelona Legal Seafood

  136. Roger Berkowitz President & CEO

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