RBJ: Greater Boston Industrial Property Market Posts Strong Third Quarter

October 30, 2013 Leave a comment

Findings Released in Richards Barry Joyce & Partners’ “indSTATus – Fall 2013” Report

BOSTON – October 30, 2013 – Greater Boston’s industrial property market enjoyed a very strong third quarter, possibly outshining even the region’s office market, according to “indSTATus – Fall 2013”, a new report from Richards Barry Joyce & Partners.

The report highlights the three industrial property types: warehouse, flex, and manufacturing.  Each property type is in the midst of a multi-quarter positive absorption streak.  The four-quarter absorption rate for the overall industrial market is at 3.3 million square feet – the highest level since 2000.

Brendan Carroll, Sr. Vice President

Brendan Carroll, Sr. Vice President

“For obvious reasons, the office properties tend to get the greater share of attention, and that’s particularly understandable given the higher visibility of office buildings and the current strength of that market,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners.  “But this may be one quarter when the industrial market should have the greater focus. We are seeing positive gains not seen in a decade.”

Following are highlights from Q3 for each of the industrial property types.

Warehouse Market – The quarter closed with vacancy of 15.6 percent, a five year low and down from 17.1 percent in the preceding quarter. Asking lease rates are $5.37 (up $0.16 from $5.21 last quarter). The market’s streak of positive absorption extended to five quarters, with a Q3 tally of 874,000 square feet.

Flex Market – The quarter closed with vacancy of 17.6 percent (down from 18.0 percent the preceding quarter), on positive absorption of 125,000 square feet. Asking lease rates of $8.21 are up from last quarter’s $8.08. Flex tenants have driven positive absorption for nine of the past ten quarters, increasing occupancy by 990,000 square feet during that time.

Manufacturing Market – The quarter closed with vacancy of 12.5 percent, a significant drop from 15.6 percent last quarter, on 465,000 square feet of positive absorption. Asking lease rates increased to $6.40, from last quarter’s $6.32. Vacancy in the manufacturing market has plummeted to 12.5 percent from 18.5 percent in Q3 2011. Greater Boston’s manufacturing occupancy base has increased seven percent over the last eight quarters, during which time tenants have absorbed more than one million square feet.

To request a copy of indSTATus – Fall 2013, please send an email to research@rbjrealestate.com.

RBJ&P Research Publications
indSTATus is one of RBJ&P’s family of eleven quarterly research reports.  The firm also publishes a quarterly office report (officeSTATus) and individual marketSTATus reports on nine critical sub-markets.  The firm’s biotechnology-focused report, bioSTATus, is released twice a year, after the first and third quarters.  In total, RBJ&P produces an industry-leading 46 reports per year, in addition to custom research projects for clients.

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services.  For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on November 1, 2013.

Categories: Press Releases

RBJ represents landlord in 234,664 SF lease with Owens & Minor in Franklin, Mass.

October 24, 2013 Leave a comment

Owens & Minor Expands Presence at 20 Freedom Way, Franklin, Mass.

Richards Barry Joyce & Partners Represents Landlord in 234,664 SF Lease

BOSTON – October 24, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that it represented the landlord in a 234,664 square foot lease renewal and expansion with Owens & Minor (NYSE: OMI) at 20 Freedom Way, Franklin, Mass.

The lease includes an expansion of approximately 87,000 square feet and makes Owens & Minor the sole occupant of the fully occupied, single-story warehouse. Owens & Minor, a leading national distributor of name-brand medical and surgical supplies and a Fortune 500 company, has shown steady growth in the location, expanding from its original presence of less than 50,000 square feet.

John Lashar, Partner

John Lashar, Partner

“The success of Owens & Minor can be seen in its exceptional growth at 20 Freedom Way, expanding its original footprint by almost five times,” said John Lashar, partner, Richards Barry Joyce & Partners. “The growth into the entire facility speaks to the high quality nature of the physical attributes of the building and the exceptional location.”

20 Freedom Way is a state-of-the-art, high bay warehouse/distribution building. Built in 2003, the building features 36’ high ceilings and ESFR sprinkler systems. Located in the Franklin Industrial Park, 20 Freedom Way is only minutes from Interstate 495. Area amenities include numerous restaurants, daycare, retail and several hotels.

Lashar and senior vice president Paul Leone represented the landlord in the transaction. RBJ&P is the exclusive leasing agent for 20 Freedom Way. Owens & Minor was represented by Jackson & Cooksey.

Paul Leone, Senior Vice President

Paul Leone, Senior Vice President

About the Market – Route I-495 South Warehouse
According to research by RBJ&P, the Route I-495 South submarket consists of 7,307,000 square feet of high-bay warehouse space, which was 12.8 percent vacant, as of the quarter ended September 30, 2013. (Source: Richards Barry Joyce & Partners’ “indSTATus – Fall 2013”)

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services. For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern | RBJ on November 1, 2013.

Categories: Press Releases

RBJ Brokers Sale Of One Radcliff Road, Tewksbury, Mass.

October 15, 2013 Leave a comment

ACG Equities Purchases 140,000 Square Foot Office/R&D Building

BOSTON – October 15, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that it brokered the sale of One Radcliff Rd., in Tewksbury, Mass.

ACG Equities purchased the two-story office/R&D building. The building consists of 140,000 square feet of space. ACG Equities plans on making significant capital investments in the property, including extensive renovations to the building entry and lobby, improvements to the landscaping and additional parking.

One Radcliff is situated on more than 16 acres of land in a mature park setting. Frontage on Interstate-495 provides high visibility for prospective tenants, as well as easy access to the highway. Nearby amenities include restaurants, hotels, and conference centers.

Chris Skeffington, Senior Vice President

Chris Skeffington, Senior Vice President

“This is an excellent acquisition for ACG Equities, given their focus on enhancing and repositioning underperforming and vacant assets,” said Chris Skeffington, senior vice president, Richards Barry Joyce & Partners. “In addition to the planned capital investments, ownership is also well funded for providing improvement dollars for prospective tenants.”

“We anticipate One Radcliff becoming one of the top buildings in the market.” said Steven Cox, ACG Equities Regional Partner.

Chris Skeffington, John Wilson, Roy Sandeman, Brian McKenzie and James Lipscomb of Richards Barry Joyce & Partners represented the buildings’ seller and procured the buyer in the transaction. ACG Equities has retained RBJ&P as exclusive leasing agent for One Radcliff Rd.

About the Market – I-495 North Market
According to research from Richards Barry Joyce & Partners, the I-495 North office market consists of 15,092,000 square feet of office space, with a vacancy rate of 22.9 percent, as of the quarter ended September 30, 2013. (source: Richards Barry Joyce & Partners’ “officeSTATus – Fall 2013)

About ACG Equities
ACG Equities is a commercial real estate investment and operating company focused on distressed and value add opportunities. ACG has completed investments in the Midwest, South East and North East. The group is comprised of Managing Partners and Regional Partners supported by a centralized Operating Platform Team in Chicago. Deal flow is enhanced by the presence of Regional Partners in various markets all of whom have acquisition and operating backgrounds.

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services. For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on November 1, 2013.

Categories: Press Releases

RBJ: Greater Boston Office Market Shows High Levels of Demand and Development

October 9, 2013 Leave a comment

Findings from Richards Barry Joyce & Partners’ Newly Published officeSTATus – Fall 2013

BOSTON – October 9, 2013 – Strong demand and high levels of development were the hallmarks of Greater Boston’s office market during the recently completed third quarter, according to a new research publication from Richards Barry Joyce & Partners: officeSTATus – Fall 2013.

Across Greater Boston, the overall vacancy rate dropped to 13.8 percent on 1.4 million square feet of absorption, the greatest quarterly absorption rate in six years. The market also posted the highest 12-month absorption rate (3.0 million square feet) of the past five years. Notably, more than 7.0 million square feet of commercial office space has either opened during the past year, is currently under construction or will begin construction this quarter (based on in-place commitments).

Brendan Carroll, Sr. Vice President

Brendan Carroll, Sr. Vice President

“Greater Boston’s total of in-place development is unmatched by the private sector anywhere else in the nation,” said Brendan Carroll, senior vice president, Richards Barry Joyce & Partners. “And demand isn’t concentrated in a few pockets. We’re seeing robust demand in almost all markets in the region, which is a great sign of a strong market.”

The third quarter also saw Boston’s occupancy hit its highest level ever – 63.5 million square feet – which is 5.0 million square feet more than during the “tech boom” in 2000. The Route 128 submarket has now had positive absorption during 13 of the last 14 quarters, while rents in the Interstate 495 North submarket have risen to their highest point since 2009.

A timely “Market Interesting” section in this quarter’s report looks at the commercial real estate projects completed during the terms of the past four mayors. Perhaps surprisingly, Mayor Thomas Menino did not preside over the most growth in the city.

About officeSTATus
One of the market’s leading sources for accurate statistics and insightful analysis, “officeSTATus is designed to deliver practical information in a convenient format to enable better decision-making.  Highlights of the quarter are presented on the report’s front page. The “Economy & Real Estate” section places the quarterly results within a broader context of the overall economy, while also discussing a range of related economic indicators and results. Each of Greater Boston’s submarkets – Boston CBD, Cambridge, Route 128 and I-495 – has a page dedicated to results in that area and include an interesting “Fact” about the region.

The final page is comprised of a valuable resource – a single chart with all the pertinent market statistics (vacancy, market size, absorption, availability and construction data) with historical data.

To request a copy of “officeSTATus – Fall 2013,” please send an email to research@rbjrealestate.com.

RBJ&P Research Publications
In addition to officeSTATus, RBJ&P publishes nine other quarterly research reports: indSTATus, which focuses on industrial property types (manufacturing, warehouse and flex buildings) and individual marketSTATus reports on eight crucial submarkets.  The firm’s biotechnology-focused report, bioSTATus, is released twice a year.  In total, the firm produces an industry-leading 42 reports per year, in addition to custom research projects for clients.

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services.  For more information, please visit our website at www.rbjrealestate.com.  Follow us on Twitter at @RBJ_Partners.

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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on Nov. 1, 2013.

 

Categories: Press Releases

RBJ represents BioMed Realty Trust in 62,600 SF lease with Ipsen in Cambridge

September 26, 2013 Leave a comment

The following press release was issued by BioMed Realty Trust.  RBJ represented BioMed in the lease.

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New 62,600 Square Foot Lease At 650 East Kendall Street Signed By Ipsen And BioMed Realty

SAN DIEGO, Sept. 26, 2013 /PRNewswire/ — BioMed Realty Trust, Inc. (NYSE: BMR) and Ipsen (Euronext: IPN; ADR: IPSEY) today announced the signing of a long-term new lease for approximately 62,600 square feet of laboratory and office space in Cambridge, Massachusetts at 650 East Kendall Street, a six-story, state-of-the-art multi-tenant research facility in the heart of the Kendall Square biotechnology super-cluster, which BioMed Realty owns through a joint venture with Prudential Real Estate Investors on behalf of institutional investors. Ipsen is a global specialty-driven pharmaceutical company whose ambition is to become a leader in specialty healthcare solutions for targeted debilitating diseases. Its development strategy is supported by three franchises: neurology, endocrinology and uro-oncology. Ipsen’s R&D is focused on its innovative and differentiated technological platforms, peptides and toxins.

“We are very excited about expanding our research and development efforts to Cambridge, a leading hub in biotechnology research,” according to Cynthia Sylvestre, President, Biomeasure and Vice President and Milford Site Head, Ipsen. “This move puts our research capabilities in the center of Kendall Square, one of the preeminent life science communities in the world, including prominent hospital centers, medical schools, biotech companies and universities. We are also excited about partnering with BioMed Realty with their specialized expertise in life science real estate.”

Commenting on the new, long-term lease with Ipsen, Alan D. Gold, BioMed Realty’s Chairman and Chief Executive Officer, said, “We are very excited that Ipsen has chosen 650 East Kendall as its Cambridge home for discovery and development of its programs. Ipsen’s product offerings, pipeline and global partnership activity serve as a model of scientific innovation and achievement. We look forward to delivering the state-of-the-art facilities that will meet their requirements for years to come.”

The 650 East Kendall property is an approximately 282,200 square foot life science research facility that is supported by six levels of below-grade parking.  The building received Gold status certification by the Leadership in Energy and Environmental Design (LEED®) of the U.S. Green Building Council.

About BioMed Realty Trust
BioMed Realty, with its trusted expertise and valuable relationships, delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 16.3 million rentable square feet.  Additional information is available at www.biomedrealty.com.

BioMed Realty Trust Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, and the ability to refinance indebtedness as it comes due; failure to maintain the company’s investment grade credit ratings with the ratings agencies; failure to manage effectively the company’s growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with tax credits, grants and other subsidies to fund development activities; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company’s domestic operations; risks associated with the company’s investments in loans, including borrower defaults and potential principal losses; potential liability for uninsured losses and environmental contamination; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE BioMed Realty Trust, Inc.

Categories: Press Releases

RBJ brokers $4 million sale of 121 Hale St., Lowell, Mass.

September 25, 2013 Leave a comment

BOSTON – September 25, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that it represented Hudson Advisors LLC in the sale of 121 Hale St. in Lowell, Mass., to Calare Properties, Inc. for $4.0 million.

Chris Skeffington, Senior Vice President

Chris Skeffington

121 Hale St. is a 60,700-square-foot industrial/research and development building located less than a mile from the Lowell Connector, off Interstate 495. The building is fully occupied by M/A-COM Technology Solutions (MACOM), a leading supplier of high performance RF, microwave and millimeter wave products. Adjacent to MACOM’s headquarters at 100 Chelmsford St., the facility supports R&D, engineering and new product testing functions for the company.

“121 Hale St. is a well positioned asset, with a terrific tenant in MACOM,” said Chris Skeffington, senior vice president, Richards Barry Joyce & Partners. “The building features modern construction as a result of significant renovations completed over the past few years. It’s a great acquisition for Calare Properties.”

James Lipscomb

James Lipscomb

RBJ&P’s Skeffington, Roy Sandeman, senior analyst, and James Lipscomb, senior vice president, represented the building’s seller and procured the buyer.

About the Market – I-495 North Flex
According to research by Richards Barry Joyce & Partners, the I-495 North submarket consists of 5,517,000 square feet of flex space, which was 22.0 percent vacant as of June 30, 2013. (Source:  Richards Barry Joyce & Partners’ “indSTATus – Summer 2013.”)

About Hudson Advisors LLC
Hudson Advisors LLC and its global subsidiaries (collectively, “Hudson”) is a globally integrated asset management company that performs due diligence and analysis, asset management, and other support services for Lone Star Funds (“Lone Star”), a leading private equity firm that invests globally in distressed assets. Formed in 1995, Hudson (formerly known as Brazos Advisors, LLC) is headquartered in Dallas, Texas and has subsidiary offices in New York, Montreal, London, Frankfurt, Munich, Luxembourg, Dublin, Madrid and Tokyo. Hudson collectively employs approximately 800 professionals.  www.hudson-advisors.com

Roy Sandeman

Roy Sandeman

About Calare Properties, Inc.
Calare Properties is a private, Massachusetts-based investment firm with a focus on value added industrial and flex/office real estate in the Northeast. Calare is the largest operator of industrial space in the Greater Boston area, and currently manages USD 350 MM of institutional and private capital, invested in a portfolio of 14,500,000 SF valued at over USD $500MM.  www.calare.com

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services. For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on November 1, 2013.

Categories: Press Releases

RBJ represents landlord in lease with TripAdvisor at 226 Causeway St., Boston

September 19, 2013 Leave a comment

BOSTON – September 19, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that it represented the landlord in a 72,000-square-foot office lease with TripAdvisor at 226 Causeway St. in Boston’s North Station.

Lobby at 226 Causeway St., Boston

Lobby at 226 Causeway St., Boston

Two subsidiaries of TripAdvisor – SmarterTravel and FlipKey – will occupy space on the building’s second, third and sixth floors. The groups will relocate from Charlestown and Boston, respectively, with move-in anticipated to begin in the last quarter of 2013. The lease brings 226 Causeway St. to 90 percent occupancy with the majority of the vacancy in the building’s retail area. Approximately 6,000 square feet of office space remains available on the sixth floor.

226 Causeway St. is a 193,000-square-foot, mixed-use development located adjacent to the TD Garden in an area known as the “Gateway to Downtown Boston.” The historic brick-and-beam building was originally built in 1906 and received extensive renovations in 2002, ranging from cosmetic upgrades to full internal systems overhauls. A lobby renovation completed earlier this year created a modern feel with updated lighting, lobby seating, a shared conference center and improved acoustics.

In addition to Class A office space, 226 Causeway St. also has six floors of residential units, known as Strada 234. The building offers easy access to Interstate 93 and Logan International Airport, as well as Downtown Boston, the North End, Charlestown and East Cambridge. The neighboring North Station provides public transportation via the Commuter Rail as well as MBTA Orange/Green Line stations and one of the largest Hubway public bike-share stations in Boston. The area is rich in amenities including fine dining, numerous lunch spots, fitness centers, day care, boutique shopping and business services.

“226 Causeway is an excellent location for any company, particularly a creative technology company such as TripAdvisor,” said Michael Joyce, managing partner, Richards Barry Joyce & Partners. “Additionally, North Station is one of the most active areas in Boston, with more than $1.2 billion in development underway.”

226 Causeway St., Boston

226 Causeway St., Boston

Joyce, along with RBJ&P’s Thomas Ashe and Patrick Buckley represented the landlord in the transaction.  The firm is the exclusive commercial leasing agent for 226 Causeway St.  TripAdvisor was represented by Mark Roth of Cushman & Wakefield and Anne Columbia of Columbia Group Realty Advisors Inc.

About the Market – Boston’s North Station
According to research by RBJ&P, Boston’s North Station submarket consists of 2,189,000 square feet of office space and was 6.7 percent vacant as of the quarter ended June 30, 2013. (Source: Richards Barry Joyce & Partners’ “officeSTATus – Summer 2013.”)

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services.  For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

Editor’s Note:  On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners.  Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on November 1, 2013.

Categories: Press Releases
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