RBJ Releases Research Report Highlighting Greater Boston’s Industrial Property Market

 “indSTATus – Winter 2012” Shows A Stabilizing Of The Market For Warehouse, Flex And Manufacturing Facilities

BOSTON – January 18, 2012 – Richards Barry Joyce & Partners (RBJ&P) has published “indSTATus – Winter 2012”, the firm’s research report on Greater Boston’s industrial market, covering warehouse, flex and manufacturing properties across the region.

According to indSTATus, there was 76,000 square feet of positive absorption across Greater Boston in all three industrial property types combined during the quarter.  In addition to being the third consecutive quarter of positive absorption, 2011 marked the first year since 2008 with positive absorption for a calendar year.  The middle two quarters of the year had 1.2 million square feet of industrial space taken off the market, the greatest such two-quarter amount in 19 quarters.

“Stability is a welcome result for a period during which other regions of the country are not faring as well,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners.  “Even better is that certain indicators, particularly availability figures, suggest that 2012 could see further positive absorption across the market.”

Following are highlights from Q4 for each of the industrial property types.

The Warehouse market closed the quarter with 16.9% vacancy, which represents no change from Q3, on 3,000 square feet of negative absorption.  Asking lease rates, which were down slightly by $0.06 to $5.33, have remained within a one percent range over the past five quarters.

In the Flex market, vacancy was down 0.1% to 16.9%, with slight negative absorption of 30,000 square feet.  The vacancy rate is the lowest year-end figure since 2008.  Asking lease rates held at $7.50 since Q3.

The Manufacturing market ended a three-quarter negative absorption trend with 109,000 square feet of positive absorption, dropping vacancy by 0.6% to 17.9%.  Asking lease rates dropped by $0.08 to $6.41.

To request a copy of indSTATus – Winter 2012, 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 eight 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.

# # #

Optimism Abounds Heading into 2012

Excerpted from officeSTATus Winter 2012

An absorption streak extended to three quarters as tenants absorbed 861,000 sf of commercial office space in the Greater Boston market in the fourth quarter of 2011.  The positive demand streak is substantial, accelerating and widespread, as occupancy levels have increased by 2.0 million sf.  The current quarter’s absorption is the greatest such amount since 2007, and positive demand was posted in the Financial District, Back Bay, Cambridge, and most of the suburban submarkets.  This demand activity is set against a backdrop of surging management optimism as measured by the Institute for Supply Management, as both Business Confidence and Employment outlook indicators recovered to very high levels, after falling to near-neutral levels as of last quarter.  Boston MSA unemployment of 6.0 percent has decreased 0.9 percent over four quarters and is 2.5 percent below a national unemployment rate of 8.5 percent.  The actual number of persons employed in Greater Boston has increased 1.1 percent during the same time period, contrasting the current dynamic with periods where unemployment fell due to a falling participation rate, or number of people actively seeking work.  Investor enthusiasm shows that at least a part of the current positive sentiment is not limited only to the Boston region, as the Dow Jones Industrial Average has risen ten percent in the fourth quarter.  The locally critical tech sector has also benefitted, with the Morgan Stanley High Tech Index rising seven percent since the end of the third quarter.

A particular demand for space in a limited number of key areas, having been sustained since before the current three-quarter overall positive absorption streak, has severely depleted vacant space in areas which many tenants consider to be their preferred locations.  Both the Back Bay and East Cambridge submarkets are under seven percent vacant.  Thirty percent of the vacant space in Waltham as of the end of 2010 was absorbed in 2011, dropping vacancy from 26.7 percent to 18.6 percent.  While the 19.1 percent vacancy rate in the Seaport District would not, in itself, signal low supply conditions, rapidly increasing appreciation of the area and its in-progress development of amenities could likely create a significant depletion of the 991,000 sf of vacant space there during 2012.  Despite a sharp increase in construction activity, the 1.6 million sf of office product under construction is 100 percent pre-leased, not helpful to tenants looking for space and partially symbolic of the inability to fill larger requirements in existing product in high demand locations.

The current supply  imbalance in an expanding environment is dramatically impacting demand patterns and partially re-shaping the urban core.  Creative firms unable to find suitable space in Cambridge have found space along Route 128, in Watertown or in the city’s successful “Innovation District” – an area including the Seaport District and a small part of the Financial District.  Back Bay tenants have also infilled Class B facilities and driven demand in peripheral areas, including the Financial District, where positive demand in the past three quarters bucks a sharp negative demand period seen 2008 through 2010.  Rapidly decreasing vacancy in Waltham will likely drive demand radially along 128, as well as to that town’s more vacant Class B inventory.  While numerous concerns permeate the economy, the region’s focus on business-to-business (research), consumer non-discretionary (biopharma), and strong sectors of consumer businesses (discount retail) position it well within the global and national economy. Accommodating a moderate amount of potential growth in areas where tenants hope to locate appears the region’s primary concern.

Boston Young Men’s Christian Union Evaluates Options For 48 Boylston Street, Boston

Owner Of 87,579 Square Foot Building Retains Richards Barry Joyce & Partners For Capital Markets Advisory Services

BOSTON – January 5, 2012 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, announced today that the firm was hired by the Boston Young Men’s Christian Union (BYMCU) to provide capital markets advisory services for the organization’s holdings at 48 Boylston Street in Boston’s Midtown area.

48 Boylston Street consists of 87,579 square feet of space, with office and retail, as well as the BYMCU’s Gym and Athletic Club.  The building is located at the intersection of Boston’s Back Bay, Theater District and Financial District, in an area with a number of construction projects.  It is immediately adjacent to two new developments –45 Stuart Street and The Kensington at 659 Washington Street – and nearby the development at Hayward Place.

“Buildings like 48 Boylston Street do not come to market very often and we are very pleased to be working with the Boston Young Men’s Christian Union on this project,” said Frank Petz, executive vice president at RBJ&P and head of the firm’s RBJ | Capital Markets group.  “48 Boylston is a unique offering, in an excellent location and in a neighborhood that is undergoing significant transformation.  We are reviewing a comprehensive set of alternatives, from sales to a variety of recapitalization possibilities.”

The RBJ&P team assigned to the project includes Frank Petz, Thomas Ashe, and Garrett Hatton.  John Judge, president of Judge Development Consulting conducted the RFP process for the Union and is leading its initiative on strategic alternatives.  “We were impressed by the RBJ team and are eager to work with them to reposition the building for greater mission impact,” said Judge.

“The Union has been located at 48 Boylston Street since 1875. The building is not only an important asset for us but also the center for our benevolent support of the community,” said Greg Sobchuk, president of the BYMCU board of directors.  “While we continue in our mission for self-improvement and healthful recreation for men and women, we feel that this is the right time for us to look at possible alternatives and explore options for the building.”

About the Market

According to research by RBJ&P, the Downtown Boston submarket consists of 68,233,000 square feet of office space and was 12.5% vacant, as of the quarter ended December 31, 2011.

About the Boston Young Men’s Christian Union

Since 1874, the mission statement of the Boston Young Men’s Christian Union has been to furnish people of Boston and vicinity a place of pleasant environment, where the influences are beneficial and elevating; to provide them opportunities for self-improvement and healthful recreation, at little or no expense; and to give opportunities for doing good, by engaging in charitable and benevolent work. www.bymcu.org

About Judge Development Consulting (Judge Co.)

Judge Co. is a real estate consultancy, working to create sustainable development solutions.  A trusted advisor to companies, non-profits and governments, Judge Co. endeavors to align scarce resources for maximum community impact. www.judgeco.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.

# # #

RBJ Releases “officeSTATus – Winter 2012”

Research Report Details Greater Boston Commercial Real Estate Office Market

BOSTON – December 21, 2011 – Richards Barry Joyce & Partners, LLC (RBJ&P), a full-service commercial real estate advisory firm, today released officeSTATus – Winter 2012, the firm’s quarterly research publication on Greater Boston’s office market.

According to the firm, Greater Boston’s office market posted another strong quarter, with overall vacancy dropping 0.4 percent to 15.4%.  The market had positive absorption – the amount of space taken off the market – of 861,000 square feet, the highest such quarterly amount in the market since 2007.  Greater Boston is currently on a three-quarter streak of positive absorption and more than 1.8 million square feet were taken of the market during calendar year 2011.

“In addition to seeing another strong quarter for the office market, we are pleased to see that the positive results are widespread,” said Brendan Carroll, senior vice president of research, Richards Barry Joyce & Partners.  “Positive absorption has occurred in almost all geographies and has been driven by companies in a wide range of industries.”

Certain geographies are increasingly space constrained, with both East Cambridge and Boston’s Back Bay submarkets posting vacancy rates below 7%.  Additionally, 30% of the vacant space in Waltham as of the end of 2010 was absorbed in 2011, dropping vacancy from 26.7% to 18.6%.

About officeSTATus

officeSTATus provides critical information in an easy-to-read, easy-to-use format.  Charts, callouts and other graphics highlight key results. The quarter’s most significant findings are presented on the first page, in a bulleted list. The “Economy & Real Estate” section places the quarter in a broader context. Each of the primary submarkets – Boston CBD, Cambridge, Route 128 and I-495 – has a page devoted to specific findings for that area and include a notable “Fact” for each region.

The quarter’s “Market Interesting” page closes the year on a high note, showing four of the key drivers for demand for commercial office real estate.  The final page of the report is a chart with all the pertinent market statistics (vacancy, market size, absorption and availability, with historical data) in one handy reference.

To request a copy of officeSTATus – Winter 2012, 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 sub-markets.  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.

RBJ Releases “bioSTATus – Winter 2012”

Research Publication Shows Decrease In Laboratory Vacancy Rates As Market Tightens And New Construction Projects Get Underway

BOSTON – November 30, 2011 – Greater Boston’s biotechnology real estate market continues its positive trend, with vacancy rates down across the market, according to bioSTATus – Winter 2012, a new research publication from Richards Barry Joyce & Partners.

According to the report, which is released twice a year, Greater Boston’s biotech real estate market consists of 16.3 million square feet of laboratory space, which was 13.1 percent vacant (as of September 30, 2011).  The vacancy rate is down from 13.7 percent at the end of the last two-quarter reporting period.  While the vacancy rates are low, the figures may not tell the whole story, as space is extremely limited in certain submarkets.

“Laboratory space is extremely scarce for most users in most size groups in the highly desired areas of East Cambridge, Boston’s Longwood Medical Area and the Route 128 West submarket,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners.  “One of the top biotech real estate concerns going into 2012 is the lack of tenant choice in the market and resulting constrained growth.  It’s the downside of having such a strong biotech cluster in the region.”

Another significant trend for the region’s biotechnology real estate market is the impact of large, singular absorption events.  In Boston and Cambridge, four major biotech construction projects commenced during 2011, totaling 1.7 million square feet of laboratory and office space.  The projects make Boston one of the nation’s most active current development areas.

bioSTATus includes a chart with all the pertinent real estate statistics (vacancy, market size, availability, absorption), as well as in-depth analysis of the broader trends facing Greater Boston’s biotechnology market, including hiring information and venture capital funding.  Venture capital invested in Massachusetts biotechnology companies again bested levels for their Silicon Valley counterparts for the combined Q2 and Q3 period.  The report’s “bioSTATus Monitor” provides a list of important topics to watch during the coming quarters.

About bioSTATus

bioSTATus is the region’s most influential research publication covering real estate for the critical biotechnology market.  The report is released twice a year and delivers critical real estate statistics (vacancy, market size, availability and absorption) and offers updates on each of the primary submarkets (Cambridge, Boston and the suburbs).

To request a copy of RBJ&P’s bioSTATus – Winter 2012, please send an email to research@rbjrealestate.com.

RBJ&P’s Research Publications

Richards Barry Joyce & Partners produces an industry-leading 42 reports per year, in addition to custom research projects for clients.  bioSTATus is released twice a year and there are ten quarterly research reports:  officeSTATus is the flagship report on the office market; indSTATus highlights warehouse, manufacturing and flex property types; and individual marketSTATus reports showcase eight critical sub-markets.

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.