Greater Boston Industrial Market Posts Strongest Quarter In Years, According To RBJ’s indSTATus report
“indSTATus – Spring 2013” Report Shows Highest Level Of Absorption In Ten Years
BOSTON – May 22, 2013 – Demand for Greater Boston’s industrial properties hit a ten-year high, according to a new research publication from Richards Barry Joyce & Partners.
The findings come from indSTATus – Spring 2013, the firm’s quarterly report highlighting warehouse, flex and manufacturing property types. Tenants absorbed 1.1 million square feet of industrial space during the year’s first quarter, driven particularly by demand for warehouse product. During the last eight quarters, more than 3.1 million square feet of industrial space has been taken off the market by tenants.
“This positive quarter for industrial properties did not occur in the vacuum, given that nationally we saw a rise in U.S. goods consumption,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners. “Locally, we’ve now submitted our third consecutive quarter with all three industrial property types posting positive absorption.”
Brendan Carroll, Sr. Vice President
Following are highlights from Q4 for each of the industrial property types.
The Warehouse market closed the quarter at 17.8 percent (down from 19.3 percent in Q4 2012), on positive absorption of 933,000 square feet. Asking lease rates were down $0.08 to $5.26. The absorption total bests the quarterly record of 736,000 square feet absorbed in the fourth quarter of 2006. By comparison, the average quarterly absorption during the past ten years is 67,000 square feet.
In the Flex market, vacancy was 18.3 percent, flat from the quarter before, on 108,000 square feet of positive absorption. Asking lease rates dropped by five cents to $8.01. Premium flex properties along Route 128 are dramatically outperforming the rest of the market, with vacancy in those properties dropping from 21.3 percent to 11.8 percent in the last five quarters.
Vacancy dropped to 16.0 percent, from 16.8 percent, in the Manufacturing market, on 35,000 square feet of positive absorption. Asking lease rates edged up by two cents to $6.29. Over the past six quarters, tenants have expanded their footprint by 470,000 square feet of space, with vacancy dropping 2.5 percentage points during that period. Also notable is the fact that manufacturing inventory offers tenants only one 50,000 square foot choice that is less than 20 years old.
To request a copy of indSTATus – Spring 2013, please send an email to research@rbjrealestate.com.
RBJ&P Research Publications
indSTATus is one of RBJ&P’s family of ten 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 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.
RBJ Brokers Four Leases In Westborough Totaling 276K SF
Firm Represents Landlord In Leases With Columbia Tech, Corporate Communications, Rand Whitney And WorkflowOne
BOSTON – May 15, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, today announced that it brokered four leases totaling 276,932 square feet in Westborough, Mass.
John Lashar, Partner
The Richards Barry Joyce & Partners team of John Lashar, partner, and Paul Leone, senior vice president, represented the landlord in each of the transactions. The leases were signed with Columbia Tech, Corporate Communications, Rand-Whitney and WorkflowOne.
“High-bay/flex buildings continue to drive the industrial market in the Greater Boston suburbs, and these buildings are no exceptions,” said John Lashar, partner, Richards Barry Joyce & Partners. “Westborough has been one of the more active towns for industrial leases so far this year.”
Details of the leases include:
Paul Leone, Senior Vice President
Columbia Tech signed a new lease for 68,135 square feet of warehouse space at 27 Otis Street. Columbia Tech, Coughlin Companies’ turnkey manufacturing solutions company, was represented by Kelleher & Sadowsky. The company is a leading supplier of printed circuit board assembly, systems assembly, and electronics contract manufacturing services for the military, communications, industrial, and medical industries.
Also at 27 Otis Street, Corporate Communications signed a new lease for 19,087 square feet of warehouse space. The event planning and trade show company was represented by CB Richard Ellis.
Rand-Whitney renewed a lease for 73,710 square feet of warehouse space at 10 Otis Street. The manufacturer of high quality, corrugated paperboard leases the entire building. Rand-Whitney was represented by Kelleher & Sadowsky.
WorkflowOne renewed its lease for 116,000 square feet of warehouse space at 1-5 Sassacus Drive. WorkflowOne, the leading provider of managed print and promotional marketing materials in the U.S., was represented by Cresa Boston.
About the Market – I-495 West Warehouse
According to research by RBJ&P, the I-495 West submarket consists of 6,232,000 square feet of warehouse space and was 16.3% vacant, as of the quarter ended March 31, 2013. (source: Richards Barry Joyce & Partners’ “indSTATus – Spring 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.
RBJ Publishes New Research Report Highlighting Boston’s Seaport District, Among Firm’s “marketSTATus” Series
BOSTON – May 10, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, has published a new research report highlighting Boston’s Seaport District, one of the most dynamic and exciting commercial real estate markets in the nation.
“marketSTATus – Seaport District” is the market’s only research publication to focus on this critical area. The report joins the other eight reports in the “marketSTATus” series, which each target a specific submarket: Boston’s Financial District and Back Bay; Cambridge; Route 128 North, West and South; and I-495 North and West.
The report looks at Class A and Class B office space in Boston’s Seaport District. During the first quarter of 2013, the submarket extended its streak of positive absorption to three quarters, during which 234,000 square feet have been absorbed. The vacancy for the submarket is at 15.2 percent, though tenants larger than 50,000 square feet find just two available choices market-wide. Asking lease rates for Class B space have increased 68 percent over the past three years, closing the quarter at $35.75.
“We are pleased to add the Seaport District to our series of marketSTATus reports,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners. “The market remains one of the hottest locations not only in Greater Boston but in the country. We anticipate strengthening positive demand in the coming quarters.”
Brendan Carroll, Sr. Vice President
To request a copy of “marketSTATus – Seaport District Spring 2013”, please send an email to research@rbjrealestate.com.
RBJ&P Research Publications
Richards Barry Joyce & Partners publishes eleven quarterly research reports. officeSTATus, the firm’s flagship report, highlights Greater Boston’s office market. indSTATus covers the three industrial property types: warehouse, flex and manufacturing. The marketSTATus reports focus 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.
Wayfair.com Announces Plans To Move Corporate Headquarters To The Offices At Copley Place
New 105,000 SF Location Needed To Support Boston-based Online Retailer’s Steady Growth
BOSTON – April 30, 2013 – Wayfair.com, the largest online retailer of home products and furnishings, has signed a new 105,000 square foot lease with Simon Property Group, Inc. (NYSE: SPG) at The Offices at Copley Place in Boston’s Back Bay. The location will become the company’s new corporate headquarters.
The Boston-based online retailer, currently based at 177 Huntington Avenue, required a new location to support the company’s continued growth. The new space is ten percent larger than Wayfair.com’s current offices, and can be expanded as the company continues to grow. Wayfair.com has grown at a rapid pace from two employees in 2002 to more than 1,200 in 2012.
“Our roots are in the Back Bay of Boston, so we are very pleased to have found a great space that can accommodate our growth trajectory while allowing us to stay in the heart of the city,” noted Niraj Shah, CEO and co-founder of Wayfair.com. “We look forward to continued growth and success in our new Copley Place location.”
Wayfair.com will occupy space on five floors in Tower 4 of Copley Place. The company anticipates a move in mid-2014 when its current lease expires.
“We are extremely pleased that Wayfair.com has chosen to relocate to the Offices at Copley Place with so many other alternatives available within the Boston market,” said Brian Jenkins, Regional Vice President – New England, Simon Property Group. “As one of Boston’s most successful business growth stories, Wayfair.com will bring an energized employee base to complement the existing companies that reside at Copley Place. We are confident that the amenities and infrastructure we provide will be a great fit for Wayfair.com and look forward to welcoming other new companies in the future.”
Michael Joyce, Jonathan Varholak and Thomas Ashe of Richards Barry Joyce & Partners represented Wayfair.com. Ogden White of CBRE New England represented Simon Property Group.
Michael Joyce, Managing Partner
“We are pleased to see an enormously successful Boston-based company like Wayfair.com maintain its local roots and decide to stay within the city,” said Michael Joyce, managing partner at Richards Barry Joyce & Partners. “This is a tremendous boost to both the city and to the Offices at Copley Place.”
About the Offices at Copley Place
Copley Place, a world-class, mixed-use complex, offers approximately 845,000 square feet of Class A office space in one of Boston’s best known locations. Copley Place’s office space is contained in four towers, each featuring an individual elevator core. Onsite amenities are unparalleled in the city: with 75 retail shops, two large convention hotels, and 1500 parking spaces. More than 40 restaurants are either onsite or nearby.
Tenants of Copley Place have excellent options for accessing the complex. The site is immediately adjacent to the MBTA Orange and Green Lines and the regional commuter rail at Back Bay Station. The project is conveniently located at the Exit 22 interchange of the Mass Pike (I-90).
Boston’s Back Bay Office Market
According to research by RBJ&P, Boston’s Back Bay submarket consists of 13,272,000 square feet of office space and was 7.7% vacant, as of the quarter ended March 31, 2013.
About Wayfair.com
Wayfair.com offers a zillion things home – the largest selection of home furnishings and décor across all styles and budgets. With more than five million options from 5,000 brands, we are dedicated to helping people find the perfect product at the right price. Our unparalleled selection and superior customer service coupled with the convenience of online shopping makes it easier than ever before to find exactly what you want for your home. Other sites under the Wayfair.com umbrella include AllModern.com, a leading retailer of original modern design, and JossAndMain.com, the fastest growing private sale site for the home.
Headquartered in Boston, Massachusetts, Wayfair.com employs more than 1200 people and operates distribution and operations centers in Ogden, Utah and Hebron, Kentucky, and international offices in Galway, London, Berlin and Sydney. For more information, please visit www.wayfair.com, or follow us at www.facebook.com/wayfair or at www.twitter.com/wayfair or check out our blog My Way Home at www.wayfair.com/blog.
About Simon Property Group, Inc.
Simon Property Group, Inc. (NYSE:SPG) is an S&P 100 company and the largest real estate company in the world. The Company currently owns or has an interest in 327 retail real estate properties in North America and Asia comprising 242 million square feet. We are headquartered in Indianapolis, Indiana and employ approximately 5,500 people in the U.S. For more information, visit the Simon Property Group website at www.simon.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.
RBJ Represents Clark Cutler McDermott In 59,970 SF Lease At Franklin Industrial Park
Clark Cutler McDermott Leases Entire Single Story Warehouse/Flex Facility
BOSTON – April 24, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that it represented Clark Cutler McDermott Company in a 59,970 square foot, long-term lease renewal at 130 Constitution Blvd. (Franklin, Mass.).
Clark Cutler McDermott (CCMcD) leases the entire building at 130 Constitution Blvd., which is part of the Franklin Industrial Park. The location serves as the company’s primary warehouse location. CCMcD is headquartered at 5 Fisher Street in Franklin, where it has been located since its founding in 1911.
The building serves as a critical site for the company’s overall manufacturing process in Franklin by providing warehouse and staging for material and finished goods. “Clark Cutler McDermott has been a presence in the Franklin area for more than a century,” said John Lashar, partner, Richards Barry Joyce & Partners. “It’s terrific to work with a company with such longevity and strong local roots.”
John Lashar, Partner
Richards Barry Joyce & Partners also represented the building’s landlord. John Lashar and Paul Leone of RBJ&P were the sole brokers in the transaction. The team was also involved with the initial lease transaction at the property five years ago.
About the Market – Town of Franklin Warehouse
According to research by Richards Barry Joyce & Partners, the town of Franklin has 2,887,000 square feet of warehouse space, which was 11.0% vacant (as of March 31, 2013).
About Clark Cutler McDermott Company
Clark-Cutler-McDermott Company was founded in 1911 by Thomas S. McDermott, Walter Clark, and William Cutler. The company’s headquarters have remained and expanded at the same location in Franklin, Massachusetts. CCMcD is a privately held company that has been under the present management control for 96 years. CCMcD has a long history of developing innovative products for the automotive acoustical industry including: Re-claimed cotton acoustical insulation (shoddy) (1971), Polypropylene splash shields and fender insulators (1978), and Resin-free moldable acoustical insulators (1986). For more information, please visit our website at http://www.ccmcd.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.
RBJ Brokers Sale Of 15 Pleasant Street Connector In Framingham, $5.5 Million
CRCP Pleasant Street, LLC Sells 95,000 SF Office Building To Normandy Real Estate Partners
BOSTON – April 18, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that its Capital Markets team represented CRCP Pleasant Street, LLC in the sale of MetroWest Place (15 Pleasant Street Connector, Framingham, Mass.) to Normandy Real Estate Partners for $5.5 million.
The property is located just outside 9/90 Corporate Center and The Framingham Technology Park, in close proximity to the interchange of the Massachusetts Turnpike and Route 9 (at Exit 12 on the Pike). The five-story, glass-top building consists of 95,000 square feet of Class A office space. The building had been fully occupied by Genzyme until 2012.
Normandy Real Estate Partners is planning a major renovation, expansion and repositioning of the asset that will commence with a permitting process with the appropriate municipal agencies.
John Lashar, Partner
“MetroWest Place is an extremely well located asset and the renovation and repositioning plan anticipated by Normandy will provide the submarket, particularly the Exit 12 interchange at 9/90 much needed Class A supply,” said John Lashar, partner, Richards Barry Joyce & Partners. “The building has excellent infrastructure and expansion potential. The market is very supply constrained, particularly for large blocks of Class A space.”
According to research from RBJ, Framingham has 3.9 million square feet of office space, with a vacancy rate of only 9.2% (as of the close of the first quarter of 2013). The vacancy rate is down from 10.0% the previous quarter. The Class A vacancy rate in Framingham is a mere 6.6% vacant.
CRCP Pleasant Street, LLC was represented in the sale by Chris Skeffington, John Lashar, Paul Leone and Roy Sandeman of Richards Barry Joyce & Partners. The new ownership has retained Richards Barry Joyce & Partners as the exclusive leasing agent for the building.
Chris Skeffington, Senior Vice President
About the Market – I-495 West Market
According to research from Richards Barry Joyce & Partners, the I-495 West office market consists of 15,909,000 square feet of office space, with a vacancy rate of 17.3 percent, as of the quarter ended March 31, 2013. (source: Richards Barry Joyce & Partners’ “officeSTATus – Spring 2013)
About Normandy Real Estate Partners
Normandy Real Estate Partners is a leading real estate operator and investment manager headquartered in Morristown, NJ with offices in Boston, New York City, Los Angeles and Washington, D.C. Normandy currently manages a series of discretionary real estate funds totaling approximately $1.5 billion of equity commitments. Normandy’s existing portfolio includes over 15 million square feet of commercial assets, four hotels and numerous land development sites. Normandy targets value added real estate investments in the gateway markets of Boston, Metro New York City, Los Angeles, San Francisco, and Washington, D.C. where opportunities exist to enhance value through creative repositioning, financial restructuring, intensive management, and capital improvements. For more information visit www.normandyrealty.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.
RBJ’s Capital Markets Team Brokers Two Building Sales Totaling $15.8 Million — 15 Shattuck Road in Andover, 5 Omni Way in Chelmsford
RBJ Capital Markets Team Active In I-495 North Market With Deals In Andover And Chelmsford
BOSTON – April 10, 2013 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that its Capital Markets team brokered two building sales totaling $15.8 million – 15 Shattuck Road in Andover, Mass. (92,700 SF; $12.0 million) and 5 Omni Way in Chelmsford, Mass. (131,000 SF; $3.8 million).
“The year is off to a solid start with capital markets activity across Greater Boston, and we’re looking forward to it continuing,” said Chris Skeffington, senior vice president, Richards Barry Joyce & Partners. “We were particularly energized by these two sales in the I-495 North submarket. Even though they are in the same area, they were very different processes, requiring different approaches.”
Chris Skeffington, Senior Vice President
In both transactions, the seller was represented by Chris Skeffington and Roy Sandeman of Richards Barry Joyce & Partners’ Capital Markets group, along with brokers John Wilson, Brian McKenzie and James Lipscomb.
Details of the transactions include:
15 Shattuck Road, Andover, Mass. – RBJ acted as the exclusive sales agent for Winthrop Realty Trust (NYSE: FUR), selling the 92,700 square foot building to Carter Validus Mission Critical REIT, Inc. for $12.0 million. The two-story building is a data center facility fully occupied by Windstream Corp. (NASDAQ: WIN). Windstream is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide.
5 Omni Way, Chelmsford, Mass. – A joint venture of Griffith Properties and Echo Bridge Partners purchased this 131,000 square foot building for $3.8 million, with RBJ acting as exclusive agent on behalf of the seller. The two-story office/flex building is currently undergoing extensive renovations. The building will soon feature a distinctive, two-story glass atrium lobby, as well as modern façade upgrades, including an enhanced window line and significantly improved daylighting. A new landscaping plan will maximize the property’s visibility and enrich its appearance.
5 Omni Way, Chelmsford
The new ownership has retained Richards Barry Joyce & Partners as the exclusive leasing agent for the building. The RBJ team has already initiated a marketing campaign for the building, alerting prospective tenants that 5 Omni Way is now “Open To Business”.
“With new, stable ownership and a comprehensive renovation plan underway, we have already begun fielding significant interest in 5 Omni Way,” said Brian McKenzie, partner, Richards Barry Joyce & Partners. “The building has a rich history of being home to world-class tenants and we see that trend resuming in the near term.”
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 23.6 percent, as of the quarter ended March 31, 2013. (source: Richards Barry Joyce & Partners’ “officeSTATus – Spring 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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