2019 Colliers International 40th Annual Seminar - Connecting the Dots

2019 Colliers International 40th Annual Seminar - Connecting the Dots

On Thursday, January 10th, 2019, Colliers International | Boston celebrated its 40th Annual Trends in the Real Estate Market Seminar. Originally founded in 1979, the event has grown tremendously over the years as a forum to provide the real estate community with thoughtful content, educational market overviews and solid networking opportunities, and the 40th year was no exception.

Transcript

  1. Colliers International’s 40th Annual Trends in the Real Estate Market

    Seminar Boston Convention & Exhibition Center January 10, 2019
  2. WELCOME & KICK-OFF TOM HYNES, CO-CHAIRMAN CELEBRATING 40 YEARS

  3. None
  4. DAVID GOODHUE, EXECUTIVE MANAGING DIRECTOR BOSTON MARKET LEADER WELCOME &

    KICK-OFF
  5. LOCAL CONDITIONS Jeff black | capital markets Lauren Vecchione |

    urban brokerage BOSTON MARKET OVERVIEW
  6. of the top home to biopharma companies BIOPHARMA CLUSTER RECORD

    HIGH DEMAND
  7. Tenant: Landlord: Size: 900,000 SF CAMBRIDGE CHICAGO

  8. $600+ MILLION

  9. 10.2m SF V 9.2m SF 2008 11.1m SF V 12.5m

    SF 2018 CAMBRIDGE MARKET GROWTH OFFICE +8.8% lab +35.5%
  10. CAMBRIDGE

  11. Suburban Life Science Demand NEW LAB TENANTS WOBURN LEXINGTON WALTHAM

    WATERTOWN
  12. Suburban Lab Scarcity Presidential Way WOBURN +/- 100,000 SF SPEC

    LAB SPACE 195 & 200 West Street WALTHAM +/- 100,000 SF LAB CONVERSION 9%Of Total inventory
  13. CABOT Business PARK ROYALL STREET | CAnTON

  14. SUBURBS

  15. In-Migration Existing Growth BOSTON DEMAND

  16. BOSTON

  17. CAPITAL MARKET DEMAND

  18. 1.50 1.70 1.90 2.10 2.30 2.50 2.40 2.50 2.60 2.70

    2.80 2.90 3.00 3.10 3.20 3.30 Yield TREASURY YIELDS vs. LIBOR 2018 10-year LIBOR
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  20. Sovereign Wealth & LONG-Term HOLDS 1 500 BOYLSTON 222 BERKELEY

    745 ATLAntic 121 SEAPORT 75 State 501 BOYlston
  21. Rise of The family office 2

  22. Opportunity zones 3 “I look forward to working with our

    congressional delegation and local officials to support these new economic development opportunities across the Commonwealth.” Governor Charlie Baker @MassGovernor 20 Apr 2018
  23. Market disruptors 4

  24. GETTING EXPOSURE TO CLASS A PRODUCT

  25. SELECT DEBT FUND PLAYERS

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  28. URBANIZATION TODAY 2050

  29. URBAN allure SAN FRANCISCO NYC LONDON BOSTON

  30. YEAR 1 2 3 4 5 6 7 8 Lease

    Structuring Trends packages
  31. 2 Drydock AVENUE PARKSIDE ON A Winthrop SPEC/FUTURE DEVELOPMENT 2020

    2021 2022+ BULFINCH CROSSING BACK BAY SOUTH END GATEWAY
  32. 2 Drydock AVENUE

  33. CAMBRIDGE CROSSING THE BEAT SUFFOLK DOWNS XMBLY

  34. ALLSTON’s NEXUS Enterprise Research Campus @ HARVARD ALLSTON YARDS

  35. ACRES UNITS STEPS TO COMMUTER RAIL STATION WALK SCORE MARKET

    RATE FULLY ENTITLED AND PERMIT READY
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  37. downtown quincy development

  38. and growing…

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  40. SOUTH BOSTON BOSTON CAMBRIDGE SOMERVILLE

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  42. 10 11.4 9.7 9.5 9.5 9.1 7.8 8.2 7.6 7.7

    6.6 6.5 6.3 6.4 6.1 6.0 6.4 6.5 6.9 6.9 6.4 6.2 5.5 5.7 6.8 6.8 6.1 6.4 5.0 4.7 4.9 5.3 5.2 4.6 5.1 3.8 4.0 4.1 3.5 3.5 3.6 3.8 3.7 3.2 3.2 3.0 0 2 4 6 8 10 12 Years Central London - Average Lease Length vs Period to Initial Break Avg Lease Length Avg period to initial break
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  47. SUBURBAN CONVERSION TRIPLE DIGIT RENT$ Opportunity Zone EXPLORATION REFIS ON

    THE RISE Predictions for 2019
  48. JESSICA SAWYER, EXECUTIVE VICE PRESIDENT OPERATIONS GLOBAL CONNECTIONS INTRODUCTION

  49. A A R O N J O D KA COLLIERS

    boston GLOBAL CONNECTIONS MODERATOR PANELISTS COLLIERS LONDON S H A U N S I M O N S COLLIERS SAN FRANCISCO JA Y S TE RN B E RG COLLIERS NEW YORK F RANK W ALLAC H COLLIERS BOSTON CUR TI S CO L E PANEL DISCUSSION
  50. TENANT MIGRATION

  51. CURTIS COLE | BOSTON

  52. SHAUN SIMONS | LONDON

  53. SHAUN SIMONS | LONDON CITY FRINGE OFFICE MARKET AS OF

    JAN ‘19 Total Office Stock (SF) 18.7M SF 2018 Take-up vs 10 Year Avg +31% Prime Rent £65-85 PSF ($83 - $108 psf) Grade A Vacancy Rate 1.8% All Grade Vacancy Rate 6.4% All Grade Availability (SF) 1.2M SF > The City Fringe has become synonymous with characterful workspace as well as fully specified modern & flexible office product. > The 'Shoreditch Triangle' has fast become an international centre for technology and digital media. > The district is diverse, ranging from warehouses, to creative workspaces, to new landmark developments. > Media and Tech continues to account for close to 50% of demand but flexible providers remain acquisitive at 20%.
  54. JAY STERNBERG | SAN FRANCISCO VS.

  55. JAY STERNBERG | SAN FRANCISCO 2000 92K SF 42K SF

  56. JAY STERNBERG | SAN FRANCISCO 2001-2005 1.3M SF 988K SF

  57. JAY STERNBERG | SAN FRANCISCO 2006-2010 6.3M SF 2.5M SF

  58. JAY STERNBERG | SAN FRANCISCO 2011-2015 13.1M SF 10.5M SF

  59. JAY STERNBERG | SAN FRANCISCO 2016-2018 16.6M SF 23.4M SF

  60. FRANK WALLACH | NEW YORK $74.63 $73.45 $96.71 $75.64 $64.88

    $/SF asking rents as of q4 2018 MIDTOWN MIDTOWN SOUTH DOWNTOWN
  61. FRANK WALLACH | NEW YORK $/SF asking rents as of

    q4 2018 $115.30 $59.10 $63.12 $82.21 $87.37 $79.29 $89.26 $82.21 MIDTOWN MIDTOWN SOUTH DOWNTOWN
  62. FRANK WALLACH | NEW YORK $66.82 $55.04 $55.99 $68.68 $56.09

    $/SF asking rents as of q4 2018 MIDTOWN MIDTOWN SOUTH DOWNTOWN
  63. A A R O N J O D KA COLLIERS

    boston GLOBAL CONNECTIONS MODERATOR PANELISTS COLLIERS LONDON S H A U N S I M O N S COLLIERS SAN FRANCISCO JA Y S T ERN B ERG COLLIERS NEW YORK FRANK W ALLAC H COLLIERS BOSTON CUR T I S CO L E PANEL DISCUSSION
  64. INSIDER PERSPECTIVE BRYAN J. KOOP, EXECUTIVE VICE PRESIDENT BOSTON REGION

    KEYNOTE PRESENTATION
  65. THANK YOU. Please stay and join us for a cocktail

    reception. 40th 40th
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