Are You Ready to Be a Landlord? The high return on investment comes with many responsibilities

Posted on: Tuesday, August 8th, 2017, under Uncategorized.

Purchasing an office building or other commercial real estate property is a lucrative investment. It’s an asset that appreciates in value, and having ongoing and steady tenants means a continuous cash flow.

Investing in a building with tenants means you’ll become a landlord, which comes with a wealth of benefits and challenges. Making a commercial real estate purchase is the first big step, but before you buy, make sure you’re ready to be a landlord. Here are some signs that you are.

You have the money (or can get the financing) to invest.

Sounds obvious, but do you have the money to invest in commercial property? Paying cash may be ideal in some situations, but there are also many financing options out there. One option is the CDC/504 Loan Program through the U.S. Small Business Administration.

504 loans specifically finance major assets, such as real estate. While there are several eligibility requirements, these loans are fixed rate, come with flexible terms, and are less expensive than other types of financing. A 504 loan is a great option for first-time commercial real estate investors.

You can find solid tenants.

When you own commercial real estate, tenants are your lifeblood. Having solid, long-term tenants will keep cash flowing, helping you pay back loans and adding to your bottom line. Finding such tenants can be challenging.

Advertising the property online is one of the best ways to attract tenants. You create a profile for your space (link to: https://www.realmassive.com/signup), include lots of appealing amenities, and take enticing photos to stir interest. You can share the listing on social media to attract even more interest.

You’re not dependent on the cash from rent.

While commercial real estate brings a nice return on investment, don’t rely on the rental income as your sole source of income (or even a large part of it). Chances are there will be times that you have vacant spaces—and, no matter how successful your tenants are, they might not always pay their rent on time. Not to mention that companies can go out of business.

You understand the responsibilities.

Being a landlord comes with many responsibilities. You will be responsible for maintaining the property, making any repairs and keeping it in a state that will attract tenants. You also have to insure the building and keep all certifications, like fire safety, up to date. Landlords are also responsible for creating lease agreements and sticking to the lease’s conditions.

If you’re ready for the responsibility that comes with being a commercial landlord, these tips will help you get started.

How Good is CRE Big Data? Three Ways to Use Big Data to Your Advantage

Posted on: Tuesday, August 8th, 2017, under Uncategorized.

The term big data sounds incredibly complicated, implying vast layers of statistics and trends to translate and then use to make solid predictions. It’s intimidating to those who not only don’t have access to big data, but who are also inexperienced in harnessing its power to make proactive and well-informed decisions.

By anyone’s estimation, though, big data is a valuable tool that reveals new trends and opportunities for those in commercial real estate. In fact, solution providers who give their clients enough content and numbers to navigate through all stages of the buying process are chosen 95% of the time over those who do not. Everyone is potentially accessing the same numbers as everyone else, but it’s the sort of questions these stats prompt that matter.

It’s clearly crucial to understand and use big data. How? Here are a few ways to turn the numbers into sales:

 

  1. Creating a comprehensive site evaluation. Office buildings equipped with sensor technology can provide real-time foot and vehicle traffic statistics and predictions. Such unstructured data, when merged with the property information already available in structured data outlets, creates a strategically tight target to identify appropriate tenants. Also crucial to consider are past price negotiations and loans, the current state of the property, maintenance costs, and policies. Transparent transactions are the goal.
  2. Predicting client behaviors and preferences. Well-researched assessments of a property help targeted buyers make decisions, whether they’re new tenants or currents tenants deciding whether to extend leases. Unstructured data that monitors leasing trends and stays current on related topics appearing on social media streams and via online opinions has a direct connection to identifying focused business opportunities. For example, with insights gleaned from recent increases and interest in shared office space, large offices are now being divided into smaller units to attract start-ups and sole proprietors, bundling shared services all tenants will need regardless of their industries. This is a clear response to predictive unstructured data layered with structured information.
  3. Revolutionizing property technologies. The needs and expectations of potential buyers and tenants are changing on a dime, and the only way to process and implement the most recent developments is by keeping current with big data. Analytics including every important entity in the sales process, as well as the use of smart sensors to manage up-to-the-minute energy resources on property, are necessary to acquiring and keeping buyers engaged.

 

Big data is all about making insider information available to those who formerly had limited access. One of the biggest complaints about big data is that major corporate players with deep pockets have invested in compiling data to be uniquely useful; it’s the governance of the data that gives smaller players pause. Transforming the numbers into meaningful and accessible business intelligence across the commercial real estate industry is the ultimate goal of the new big data. Using its power is the key to enabling innovations in the commercial real estate industry, as well as enabling growth, continued smart development, and profits.

Gain access to CRE Big Data through our innovative platform, built for Commercial Realtors. Sign up today.

9 Tips for Photographing Commercial Properties to Get Attention: How to show off its best features

Posted on: Tuesday, August 8th, 2017, under Uncategorized.

High-quality photography is essential for commercial real estate listings. Most buyers begin their property searches online, where making a strong first impression is everything.

If you’re new to real estate photography, the best way to learn is through practice. Experiment with different angles and light settings, and take photos at different times of day to see which look best. You can always delete the less-than-stellar ones.

These nine tips will help you photograph your commercial property so that it gets the attention it deserves:

 

  1. Use a Wide-Angle Lens. If you decide to be your own photographer, invest in a wide-angle lens. The wider frame showcases the true sense of the space and provides a sense of depth and detail.

 

  1. Emphasize Space and Lighting. Buyers look for natural light and space—so, make sure you accentuate both. You’ll need to consider the best time of day to take the photo to capitalize on the light so that you can avoid bright sun and dark shadows. Often, the best time to take photos is when the sun is low.

 

  1. Avoid Vertical Shots. It’s always better to use landscape orientation for your property’s photos, rather than portrait layouts. People tend to be more drawn to horizontal photos, and they show off more of the property.

 

  1. Give Yourself Time to Shoot. Snapping great photos that will get your listing the attention it deserves takes time—so, give yourself enough time to take the best photos possible. A good photo shoot can take a fair amount of time, but that’s a worthwhile upfront investment that will pay off once your online listing goes live.

 

  1. Highlight the Best Features. Location is one of the most important aspects of commercial property. So be sure that the exterior photos highlight its location and some of the surroundings. For interior photos, emphasize each room’s best features—whether it’s natural light, spaciousness, or other identifiable qualities.

 

  1. Prepare the Space. Make sure furniture is carefully arranged in each room so that the photos demonstrate its possibilities. Adding fresh greenery, bright artwork, or other colorful accents can draw attention to the space.

 

  1. Clean Up. This probably sounds obvious, but make sure the space is clean and clutter free before photographing it. Any surfaces should be free from papers and other items. Clean windows and floors—and, generally, make sure everything is tidy.

 

  1. Choose the Angle Wisely. Angles matter when you’re trying to show off your property. Use a tripod to avoid blur and move around to find which angle does the best justice. Choosing the right angle can make rooms look more enticing and close a deal faster.

 

  1. Hire a Professional. The better your photos, the more likely you’ll get the best price for your listing. It’s also likely to sell or lease more quickly. If photography isn’t your thing, consider hiring a professional who has the right equipment and expertise. The return on investment is definitely there.

 

Whether you decide to DIY your commercial property’s photos or hire a professional, you want to be sure to showcase it in its best light. Buyers will definitely notice and take action.

Death of the Retail Industry: Is Warren Buffet Right?

Posted on: Tuesday, August 8th, 2017, under Uncategorized.

Known as the Oracle of Omaha, Warren Buffet has built a solid reputation as one of the world’s most revered, most influential, and most followed investors. When he makes a prediction – especially when it focuses on commercial real estate – we all listen intently.

At Berkshire Hathaway’s annual meeting held in early May, the billionaire investor forecasted a total change in the retail industry within the next ten years as it heads into a predominantly online model. It’s not just rhetoric; Buffet’s investment firm sold off $900 million in Walmart stock, even as the multinational retail corporation of grocery and superstores invests billions to compete with Amazon. Reviewing an ever-increasing list of retail stores closing this year, from Radio Shack’s 552 locations to 138 JCPenneys, as well as 70 Staples and Sears sites, it’s impossible to ignore the fast-shifting, downward trends of brick-and-mortar retailers.

Buffet isn’t alone. According to asset management company Cohen & Steers’ recent report, “We see this retail weakness, which is occurring despite a relatively healthy economy, as part of a permanent evolution in how and where Americans spend their money. We expect the paradigm shift taking place to dramatically alter the retail landscape, with potentially significant implications for real estate investors.”

So how does the commercial real estate industry adapt to this stressful evolution and shore up a rough retail real estate market? Perhaps the answer involves persuading brands – and building owners – to be more flexible. A study from commercial real estate services firm CBRE reveals the average length of a retail lease is currently around five years, down from 20 years in 1991. They’ve coined the term “rogue retailing” to describe a new model that requires more flexibility on the parts of both landlords and retailers in order to compensate for greater risk involved when setting up shop in the market.

Traditional shopping experiences are being re-evaluated as they’re influenced by new ideas and online effects. Technology and behaviors are changing too quickly to carry long-term, massive real estate buildouts, and long-term leases no longer make much sense.

Enter: the pop-up shop.

While the cost of retail real estate is projected to increase by only one percent in 2017, the pop-up industry was valued at $50 billion in 2016. Also known as flash retailing, pop-up endeavors have created entirely new marketplaces to allow for their ease into commercial real estate, like those companies offering “retailer in a box” services to help with concept, staffing, and set up supplementation.

At a time when retail landlords are fighting alarming vacancies, pop-up shops attract fresh traffic, revitalize dying properties, and bring additional rental income. While developers aren’t encouraged by the direction of retail, they realize their bottom lines favor the increase in income. As the saying goes, empty space doesn’t pay the rent.

Are we headed into a future without retail stores? Probably not. But no matter what side of the commercial real estate industry on which you may find yourself, the keys to success and profit involve flexibility and a willingness to readjust on the fly.

Berkshire-Hathaway and RealMassive Announce Commercial Data Partnership

Posted on: Friday, July 21st, 2017, under Media.

AUSTIN, Texas, June 13, 2017 (GLOBE NEWSWIRE) — RealMassive, commercial real estate’s first open and connected digital marketplace, will provide automated property listing and digital marketing exposure for all Berkshire Hathaway HomeServices Commercial Group’s (BHHS) represented commercial properties. Through an innovative API-based connection, BHHS’ inventory data will transfer automatically and in real-time to RealMassive’s national, open database. The connection also delivers BHHS’ brokers and their clients mobile-optimized visibility across multiple markets, search, and social channels.

“We’re excited and pleased to be the first commercial real estate brokerage service provider to partner this way with RealMassive and take the first steps toward real open access for commercial real estate property data. Open access to CRE property data is changing the way brokerage is done and at Berkshire Hathaway HomeServices Commercial Group we’re proud to be the first to automate with RealMassive. It gives us a real advantage for our clients, for our agents and for the business community.” – Michael W. Fields
“Our partnership with this industry giant and established household brand further separates us from traditional commercial data providers. Like us, the BHHS team is in constant pursuit of modern, digital business practices and we are excited about our future together. RealMassive’s focus on data automation, open access, and mobile solutions will help us both achieve our objectives as we support the growth and expansion of their commercial services division.” – Patrick Lashinsky, CEO of RealMassive

This announcement comes on the heels of significant advancements in data growth and market coverage for the Austin-based tech firm. Already presenting nearly four billion square feet of commercial property and land, RealMassive is in pursuit of tripling their property data inventory by the end of 2017.
To learn more about the details and benefits of this partnership, please email contact@realmassive.com.

About Berkshire Hathaway HomeServices Commercial Services:
Berkshire Hathaway HomeServices Commercial Services is among the few companies entrusted with the Berkshire Hathaway name, an enterprise worth more than $200 billion dollars today.
Our namesake, Berkshire Hathaway, was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies. This speaks to a commitment to business ethics and integrity over all else, as is consistently demonstrated by its chairman, Warren Buffett.
The company is built on the proven operational excellence, demonstrated integrity, and the reputation of Berkshire Hathaway – among the world’s most admired companies, according to Fortune’s 2012 ranking.

Simply put, the Berkshire Hathaway network of commercial real estate sales professionals share the strength of a solid universal business reputation that’s great for business.
About RealMassive:

RealMassive™ is commercial real estate’s open and connected digital marketplace, covering over four billion square feet of office, industrial, and retail space. The Austin-based SaaS firm provides CRE professionals with critical insights into the performance of their markets and portfolios while streamlining their marketing efforts. Users can list, search, and share data sets through an intuitive platform optimized for performance analytics, digital marketing, and inventory management.

RealMassive.com @RealMassive

NAI Hunneman Q2 Market Recap Now Available

Posted on: Thursday, July 20th, 2017, under Uncategorized.

Bob Samiiby Liz Berthelette, Director of Research NAI Hunneman. Liz is a seasoned CRE researcher with a penchant for maps, graphs & data; providing insights on the local Boston market and beyond.
 

While build-to-suit activity propped up absorption, Greater Boston’s commercial real estate markets ended the second quarter with mixed results. Overall market conditions remain positive, however, growth has slowed to a more moderate pace.

Pharma R&D

  1. In the office market, vacancies were flat compared to last quarter as both the Downtown and Cambridge markets posted negative absorption. Biogen’s vacant sublease at 105 Broadway, Whole Foods’ relocation to Marlborough and the demolition of 145 Broadway led to higher vacancies in Cambridge. In the suburbs, the delivery of SharkNinja’s new headquarters in Needham and two large owner-user sales helped the office market post more than 400,000 square feet of demand. Despite a softening in fundamentals asking rents continued to increase; surpassing $33/SF metrowide in the second quarter.
  2. Given how tight Greater Boston’s lab market has been, any movement in either direction can impact fundamentals. This quarter, positive absorption in East Cambridge was driven by the delivery of the fully-occupied 50-60 Binney Street. Takeda’s now vacant space at 26 Landsdowne Street and former BIND Therapeutics space at 325 Vassar contributed to negative absorption in Mid Cambridge. In terms of construction Alexandria broke ground on 399 Binney Street and King Street Properties is moving forward with a speculative lab building at 828 Winter Street in Waltham.
  3. Overall demand remained positive in Greater Boston’s industrial market, with build-to-suit construction and owner-user sales bolstering absorption. That said, modest speculative construction and negative absorption in the north markets kept vacancies elevated compared to last quarter. In one of the largest deals of the quarter, 47 Brand purchased the 465,000-square-foot 140 Laurel Street in Bridgewater and plans to occupy the space, which has been vacant since 2009. Asking rents are nearing $9/SF metrowide, with Flex/R&D space within the Route 128 belt garnering top dollar from tenants.

Click here to access Market Recap.

Buying Commercial Real Estate? Here are 3 Advantages to Property Management’s Involvement in the Due Diligence Process.

Posted on: Thursday, July 20th, 2017, under Uncategorized.

Bob Samiiby Liz Berthelette, Director of Research NAI Hunneman. Liz is a seasoned CRE researcher with a penchant for maps, graphs & data; providing insights on the local Boston market and beyond.
 

Purchasing a commercial property can be challenging; sometimes requiring a significant amount of due diligence in a short period of time. During this truncated timeframe, the new buyers need to complete a detailed investigation of the property to determine whether or not they remain satisfied with the asset and all its systems before closing the transaction.

Buyers can easily be overwhelmed and get lost in the details. NAI Hunneman’s COO & Director of Property Management, Steve Prozinski, looks at three key advantages to enlisting the assistance of a property management team during the due diligence period in order to ensure all the details are covered.

Pharma R&D

  1. Create A Property Budget: With years of operating budget experience under our belt, our Property Management team is able to provide buyers with an unbiased budget based on expected asset performance. This has proved to be an invaluable tool as the buyer can review it against the proposed budget in the Offering Memorandum (OM).
  2. Thoroughly Review Leases: Our team performs an extensive analysis of all tenant leases; looking for any terms or options that could present a problem prior to closing the sale or upon assuming new ownership. We also review all leases and amendments to confirm the accuracy of information presented in the OM — ensuring the marketing materials represent reality. Finally,
    our team examines the effects of certain decisions, such as future operating costs vs. capital costs and how these decisions could impact the on-going escalations from the tenant.
  3. Examine Physical Conditions: Conducting an extensive review of a property’s physical conditions involves reviewing specific areas or building systems (i.e., HVAC or roof conditions) with third-party consultants and experts to help identify any hot button issues. Then our Property Management team creates a capital plan for the asset, which provides the buyer with detailed information on potential repairs required on the building.

Over the years, NAI Hunneman’s Property Management team has saved new owners millions of dollars by identifying discrepancies in property OM’s, as well as discovering capital items that need to be addressed prior to the close of sale.

Our team can act fast, especially within the tight time constraints of the due diligence process, and our clients have benefitted tremendously.

Steve Prozinski is NAI Hunneman’s Chief Operating Officer & Director of the Company’s Property Management Division, which oversees a portfolio in excess of 7 million square feet. For more information on our property management services visit our website.

A Breakdown of NAIOP’s Mid-Year Market Roundup

Posted on: Thursday, July 20th, 2017, under Uncategorized.

Bob Samiiby Liz Berthelette, Director of Research NAI Hunneman. Liz is a seasoned CRE researcher with a penchant for maps, graphs & data; providing insights on the local Boston market and beyond.
 

This morning NAIOP Massachusetts hosted its annual Mid-Year Market Roundup. The expert panel presented to a packed-room of real estate professionals; covering topics related to the economy, local and national property markets as well as capital markets. A common theme throughout the presentation was “slower, but not slow.” Below are just some of the key takeaways from today’s event:

Pharma R&D

Putting their heads together to boost productivity

Economic Overview – Hans Nordby

  1. In terms of a recession, it’s not if but when. Leading real estate forecasting and analytics firm; CoStar Portfolio Strategy, is predicting a recession will occur within the next three years. However, the impending downturn should be much milder than the Great Recession of 2009.
  2. Several economic indicators remain positive. Corporate profits have been positive in the last three quarters, the unemployment rate is at a 17-year low and real wage growth (accounting for inflation) is as good as it was in the previous two cycles.
  3. CRE prices are bobbling at new peaks. While prices are not rising, they aren’t necessarily falling either. Locally, the tide is going out very slowly in Boston so values should remain pretty solid.

Pharma R&D

Cambridge/Lab Market – Evan Gallagher

  1. Biotech has seen a renaissance and Cambridge is the new Florence. Moreover, the epicenter of biotech (Kendall Square) is shifting and expanding to meet the needs of tenant demand.
    The market is seeing some consolidation in the pharmaceutical industry; as one company expands another contracts. Other challenges include the soft IPO market, FDA scrutiny and lack of talent.
  2. The Cambridge office market is cooling and the breakneck pace of rent growth is likely behind us. Tech companies have gotten squeezed by the lack of space and rising rents; leading tenants that remain in Cambridge to downsize by 20-35% upon renewal.
  3. While there has been some success in the suburban lab market, one major roadblock remains: hiring. The lack of amenities and transit, compared to Cambridge, make recruiting difficult.

Pharma R&D

Retail – Andrea DeSimone

  1. Is this the death of retail? One might think so given the store closure watch list continues to grow, but it may not be time to hit the panic button yet. Leases will happen; they may just take longer and require more creativity.
  2. E-commerce continues to thrive, as its share of total retail sales remains on an upward trajectory.
  3. Innovative experiences, fitness, the restaurant scene and food halls are active retail sectors right now.

Pharma R&D

Downtown Office – Ben Heller

  1. Over the last 10 years, the office market has experienced disruptive changes – driven by technology and changing workforce demographics.
  2. How has Boston evolved in the past decade? The city is now on the global HQ map, premium locations have shifted and the definition of core product has changed.
  3. Downtown office asking rents are 11% above the previous peak and vacancies are still near 15-year lows.

Pharma R&D

Multifamily – Sue Hawkes

  1. The Boston multifamily market is still seeing price appreciation, but the pace of growth has slowed.
  2. Transit is hugely responsible for the success of multifamily product in more tertiary markets (i.e., Somerville and East Boston).
  3. Amenity wars are alive and well while some tenants are moving every year in order to take advantage of concession packages offered in the newest buildings.
  4. Affordability is a major factor in Boston; lack of affordable housing will most likely impact Boston’s labor market.

Pharma R&D

Capital Markets – Edward Maher

  1. The capital markets are not as quiet as you think. While sales volume is down 18% year-over-year in Boston, these levels are still solid compared to previous years.
  2. Foreign investors perceive Boston to be one of the best places to do business. However, there is very little inventory available for purchase.
  3. The buyer pool is thinning and overall pricing is flat in Boston.
  4. Looking to the future, the action will be concentrated in the suburbs. With that said, the suburbs remain untested waters. Moreover, foreign capital remains “snobby,” and likely won’t stray too far from core, downtown assets.

Overall consensus on the Boston market was still positive despite some risks to the near-term forecast.

Massachusetts’ Big Pharma Cluster and Its Impact on Commercial Real Estate

Posted on: Wednesday, June 28th, 2017, under Uncategorized.

Bob Samiiby Liz Berthelette, Director of Research NAI Hunneman. Liz is a seasoned CRE researcher with a penchant for maps, graphs & data; providing insights on the local Boston market and beyond.
 

Massachusetts, anchored by Cambridge, is home to one of the largest biotech clusters in the world. With many of the leading “big pharma” firms maintaining a presence here, this industry has become a key driver of commercial real estate demand throughout the Bay State. In fact, 16 out of the top 20 pharmaceutical companies investing heavily in research and development operations lease and/or own space in Massachusetts. In looking at the potential future demand for office and/or lab space these heavy investors will likely play a key role, especially if their current presence in the marketplace is minimal.

The chart below highlights each firms’ research and development investment dollars in the fiscal year 2015-16 and its estimated real estate footprint in Massachusetts. Novartis ranked first in the European Commission’s 2016 EU Industrial R&D Investment Scoreboard and occupies more than one million square feet in Greater Boston. Due to its MA-based headquarters operations, Biogen boasts one of the largest footprints in the market despite ranking among the bottom of this list for investment dollars.

Pharma R&D
*Occupied by Roche subsidiary, Iquum.
Sources: EU Scoreboard 2016 (World 2500), Costar, NAI Hunneman Research

There are a handful of firms that made the list that have little to no real estate presence in Massachusetts such as Roche, Eli Lilly, Johnson & Johnson and Bayer. With that said, many are planning to expand in Cambridge or are already collaborating locally:

• Reportedly, Eli Lilly and Johnson & Johnson have fairly large requirements out in the Cambridge market.
• Novo Nordisk has been collaborating with MIT on next generation drug delivery devices since 2015.
• Bayer is opening its East Coast Innovation Center in Cambridge.
• Boehringer Ingelheim’s venture capital arm opened in Cambridge in 2013 in order to invest in early-stage biotech companies.

One of the area’s largest pharmaceutical companies, Shire PLC, has continued to expand and currently occupies more than two million square feet in Greater Boston. However, the Lexington-based firm only invested $872 million in research and development last year; ranking the company 30th on the list. With that said, Shire recently agreed to lease 343,000 square feet at the Genzyme Center building in the heart of Kendall Square; establishing a hub for the research and development of rare diseases. This new innovation hub will house roughly 1,000 workers by 2019 ― after Genzyme relocates to its new headquarters nearby. One would expect Shire’s investment dollars to increase once this new R&D facility is operational.

Looking at revenues as opposed to R&D investment in the chart below, 14 out of the top 20 global pharmaceutical companies maintain a real estate presence in Massachusetts. Interestingly Johnson & Johnson, Bayer and Roche top this list as well. Other major pharmaceutical firms lacking a Massachusetts address include Sinopharm Holdings, Medipal Holdings and Alfresa Holdings. Could one of these companies be the next to set up shop here?

Pharma Revenue
*Occupied by Roche subsidiary, Iquum.
Sources: EU Scoreboard 2016 (World 2500), Costar, NAI Hunneman Research

While growth from companies currently located in Massachusetts will remain an important driver of commercial real estate, firms not-yet established here likely offer greater potential for future demand.

Greater Boston Property Markets Start Year on a Positive Note

Posted on: Wednesday, June 28th, 2017, under Uncategorized.

Bob Samiiby Liza Berthelette
 
Positive absorption was seen across all property types in Greater Boston. Metrowide office absorption totaled more than 300,000 square feet with the suburbs leading the charge. The lab market, particularly Kendall Square, remains as-tight-as ever. And fundamentals continue to improve in the industrial market as vacancies have reached new lows.
The New Year has brought continued uncertainty in the marketplace. However, many signs are still pointing to a stronger macroeconomic outlook in the near term. In January, the International Monetary Fund revised its U.S. growth forecast up slightly for both 2017 and 2018. A more solid economic outlook would likely bolster the commercial real estate property markets. There are still several trends worth keeping an eye on in the coming quarters that could result in up or downside risks to Boston’s outlook. Proposed budget cuts to NIH funding and concerns surrounding inflation are two to watch.

Below are some highlights from NAI Hunneman’s Q1 2017 market reports:

The Greater Boston lab market remains hot. Net absorption totaled 219,492 square feet metrowide in the first quarter, with the Cambridge markets accounting for roughly half of this space. Metrowide vacancies are nearing 3% and East Cambridge vacancies are just a mere 0.2% as demand for space remains heated. With little new product on the immediate horizon and strong demand for space, look for market conditions to remain favorable in the coming quarters.

The Greater Boston office market posted another positive quarter with more than 300,000 square feet in net absorption. Results were mixed with East Cambridge, Route 128 West and the Back Bay posting some of the strongest absorption. Metrowide vacancies inched down to 11.2% in the first quarter and direct asking rents grew to nearly $33 per square foot.

The Greater Boston industrial market absorbed more than 500,000 square feet of space in the first quarter of 2017. Vacancies are sub-8%; reaching levels not seen in more than 15 years. Demand drivers remain vast and varied. E-commerce, housing and building-related firms, drug manufacturing, third-party logistics, breweries and medical marijuana facilities are all bolstering industrial demand in the marketplace.

Access our Office & Industrial Report

Access our Biotech Report