2017 Colliers International 38th Annual Seminar - Shifting Gears

2017 Colliers International 38th Annual Seminar - Shifting Gears

Transcript

  1. None
  2. WELCOMING REMARKS TOM HYNES, CO-CHAIRMAN

  3. CELEBRATING LOCAL VISIONARIES Brian Golden Director Boston Planning & Development

    Agency Bruce Welty Co-Founder/Chairman Locus Robotics & Quiet Logistics Fred Salvucci Professor MIT; Former Secretary of Transportation Tim Rowe Founder & CEO Brian Dacey President Cambridge Innovation Center &
  4. CELEBRATING A 53-YEAR CAREER GINTARAS “CHOPS” CEPAS 4/1/63 start 53

    years, 8 months 19,632 days
  5. STATE OF THE MARKET JAMES L. ELCOCK, PRESIDENT

  6. National Economy Investment Sales Election Year Interest Rates DOW

  7. SUBLEASE VACANCY 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5%

    12.0% 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 VACANCY RATE SUBLEASE SF Total Vacancy BOSTON Tenants in the Market Source: Colliers International
  8. CAMBRIDGE 0% 2% 4% 6% 8% 10% 12% 14% 16%

    Lab - Direct Vacancy Office - Direct Vacancy Source: Colliers International
  9. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 ABSORPTION (SF) Annual Suburban

    Absorption Average Cyclical Absorption SUBURBS Source: Colliers International
  10. SUBURBS Partners Healthcare | Somerville FBI | Chelsea BUILD-TO-SUIT ACTIVITY

    Emerging Inner Suburban Markets
  11. 2016 2017

  12. DEMAND SUPPLY RENT INVESTMENT MARKET PROJECTIONS

  13. DEMAND TURNING TOWARD URBAN OUTPOSTS Access to talent & vibe

    314 Littleton Road | Westford 300 A Street | Boston
  14. DEMAND TURNING TOWARD URBAN OUTPOSTS “Shoe Capital”

  15. DEMAND RECALIBRATING SPACE NEEDS Efficiency/right-sizing RENT$ $ALARY

  16. DEMAND HIGH RISE DEMAND RUNNING ON EMPTY Character over views

  17. SUPPLY GAINING TRACTION DOWNTOWN NorthPoint – Hub On Causeway –

    South Station Tower
  18. SATISFYING AN OVERHEATED CAMBRIDGE MARKET Volpe Center – Kendall Square

    Initiative SUPPLY
  19. RECHARGING SUBURBAN PRODUCT The Center at Innovation Drive (Tewksbury) –

    The Post (Waltham) SUPPLY
  20. STABILIZING FLEX & INDUSTRIAL DEMAND Increased build-to-suit activity for users

    SUPPLY HighRes Biosolutions / Connolly Brothers / 102 Cherry Hill Drive, Beverly
  21. DEMAND SUPPLY RENT INVESTMENT MARKET PROJECTIONS

  22. -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

    12% 14% Quarterly Rent Growth Annual Rent Growth RENT RENTS PRIMARILY SET TO CRUISE CONTROL Signs of resistance for pushed rents Source: Colliers International
  23. RENT IMPEDIMENTS TO FUTURE GROWTH Jobs, Congestion, Availability 180 Buildings

    Over 20,000 SF Traffic Congestion
  24. INVESTMENT LIGHTLY TAPPING THE BRAKES ON BUILDING SALES Peaked sales

    volume $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 2012 2013 2014 2015 2016 Office Sales Volume ($ Billoins) City of Boston Suburbs & Cambridge Source: CoStar and Colliers International
  25. INVESTMENT PATIENT CAPITAL TAKING THE DRIVER’S SEAT Foreign money/long-term owners

    % of Boston’s Class A buildings having sold in the past 5 years % of sales having some form of foreign investment stake % of buyers categorized as long-term owners
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  27. CAPITAL MARKETS PANEL M O D E R ATO R

    : K E V I N P H E L A N | C A P I TA L M A R K E TS PA N E L I S TS : J E F F B L AC K | C A P I TA L M A R K E TS J O C E LY N G O G L I A | D E V. & C O N S U LT I N G S E R V I C E S TO N Y H AY E S | I N V E ST M E N T S A L E S C H R I STO P H E R S OW E R | M U LT I - FA M I LY I N V E ST M E N T S A L E S
  28. LEASING PANEL M O D E R ATO R :

    J O H N C A R R O L L I I I | S U B U R B A N B R O K E R AG E PA N E L I S TS : K R I ST I N B LO U N T | U R B A N B R O K E R AG E E VA N G A L L AG H E R | U R B A N B R O K E R AG E , L I F E S C I E N C E S G R E G K L E M M E R | S U B U R B A N B R O K E R AG E P E T E R M O N T E S A N TO | R E TA I L B R O K E R AG E
  29. KEYNOTE ADDRESS KIMBERLY SHERMAN STAMLER, PRESIDENT

  30. THANK YOU PLEASE JOIN US FOR A COCKTAIL RECEPTION

  31. None