Our Blog http://naihunnemanblog.com/?p=1791 https://naihunnemanblog.com/2018/10/08/labor-force/ Uncategorized MA Labor Force Growing at Record Pace Last week marked the third time this year the Fed has decided to raise interest rates and to celebrate, we thought it would be a good time to talk about some interesting trends we’re seeing in the Massachusetts economy. Generally speaking, the strength of the U.S. economy, which continues to gain momentum, has been a &#8230; <a href="https://naihunnemanblog.com/2018/10/08/labor-force/" class="more-link">Continue reading <span class="screen-reader-text">MA Labor Force Growing at Record&#160;Pace</span></a> Mon, 08 Oct 2018 13:33:31 Z https://naihunnemanblog.com/2018/10/08/labor-force/#respond Hunneman <p>Last week marked the third time this year the Fed has decided to raise interest rates and to celebrate, we thought it would be a good time to talk about some interesting trends we’re seeing in the Massachusetts economy. Generally speaking, the strength of the U.S. economy, which continues to gain momentum, has been a driving force behind the Fed’s decision to raise rates. GDP growth is strong, consumer sentiment is up and the unemployment rate remains low. In Greater Boston, the labor market is humming along as employers are beginning to struggle to find workers. The chart below displays historical unemployment rate data for the U.S., Massachusetts and the Boston metro area.</p> <p><img data-attachment-id="1792" data-permalink="https://naihunnemanblog.com/2018/10/08/labor-force/graph-1/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=676" data-orig-size="1254,912" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Graph 1" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=676?w=676" class="alignnone size-full wp-image-1792" src="https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=676" alt="Graph 1" srcset="https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-1.png 1254w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>If there was ever a single metric most people look to in order to gauge an economy’s health, it’s the unemployment rate. Greater Boston’s unemployment rate has been hovering below 3.5% for the last year; its lowest level since the early 2000’s. However, making any conclusions based on a single metric can be dangerous. An NFL scout wouldn’t evaluate a player only on their 40-yard dash time (usually) and the same logic works here.</p> <p>Massachusetts’ flat unemployment rate is actually masking certain underlying trends, specifically the number of available workers. To better understand the forces at play, we need to look under the hood. When unemployment is this low, economists generally expect wage gains. However, real earnings for workers both nationally and in Massachusetts have remained relatively flat.</p> <p><img data-attachment-id="1793" data-permalink="https://naihunnemanblog.com/2018/10/08/labor-force/graph-2/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=676" data-orig-size="1254,912" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Graph 2" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=676?w=676" class="alignnone size-full wp-image-1793" src="https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=676" alt="Graph 2" srcset="https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-2.png 1254w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>While earnings growth has begun to pick back up, it is still below what we would expect given how hot the labor market is running. A few theories have been thrown around as to why workers’ earnings have been disappointing. Employers could be offering more lucrative benefits packages in lieu of higher wages or desperate firms are not finding enough trained workers to meet their needs. A compelling theory, at least for Massachusetts, is there is a lot of “hidden slack” in the market. Hidden slack refers to labor pools that are not calculated in the traditional unemployment rate. Discouraged workers are a key component to slack in the labor markets. While discouraged workers are physically able to work, they are not actively looking for employment for one reason or another. Underutilized labor or part-time employed for economic reasons is another potential source of slack in the labor markets, as these workers would prefer to work full-time. Economists have been theorizing that these workers are finally returning to the workforce in full-time positions, encouraged by the strong economy and finally able to find the opportunities to fully participate. These returning workers will put upward pressure on the labor force. The chart below shows the labor force participation rate for both locally and nationally.</p> <p><img data-attachment-id="1794" data-permalink="https://naihunnemanblog.com/2018/10/08/labor-force/graph-3/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=676" data-orig-size="1254,912" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Graph 3" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=676?w=676" class="alignnone size-full wp-image-1794" src="https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=676" alt="Graph 3" srcset="https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-3.png 1254w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>The recent sharp increase in the Massachusetts’ data represents the fastest 6 month increase in the state’s labor force participation rate in at least four decades. Between January and August of 2018, the Bureau of Labor Statistics estimates that an additional 147,000 workers were added to Massachusetts labor force, which is roughly the equivalent to the population of Springfield, MA. While Massachusetts has been booming, the U.S. participation rate has remained stubbornly flat for the last few years. The plateauing of the national metric could be due to a shifting demographics. As the population ages, older citizens leave the labor force through retirement while new participants, whether it be population growth or discouraged workers, enter at around the same rate. That said, Massachusetts is struggling with the same demographic shifts when it comes to an aging population.</p> <p>If we look at the data on the state level, Massachusetts’ grown patterns are even more remarkable. The chart below looks at changes in the labor force by state during the first six months of 2018.</p> <p><img data-attachment-id="1795" data-permalink="https://naihunnemanblog.com/2018/10/08/labor-force/graph-4/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=676" data-orig-size="1276,928" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Graph 4" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=676?w=676" class="alignnone size-full wp-image-1795" src="https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=676" alt="Graph 4" srcset="https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-4.png 1276w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Massachusetts&#8217; labor force growth of 4% is far ahead of any other state in the Union. While we can’t yet pinpoint the specific cause of this spike, we can discuss some possibilities. Increased population growth, either natural or via migration, could be driving these recent trends. Massachusetts has seen some large companies move in as local markets have become hotspots for the tech and biotech industries. Given Massachusetts has some of the best post-secondary schools in the country, companies have been flocking to the Boston area. One of the reasons economists have cited when looking at flat wage growth despite a tight labor market is the difficulty some companies have finding workers who have the skills they require, so it follows that these companies would move closer to labor that matches their needs, leading to the Boston area retaining more of its college graduates. However, the Bureau of Labor Statistics population estimates put Massachusetts growth as squarely average. The most likely reason, therefore, appears to be workers are finally getting off the sideline and returning to work, bolstered by Massachusetts strong economy.</p> <p>A rapidly expanding labor force can shock a market in a few ways. Remarkably, job growth in Massachusetts and Boston has kept up with labor force growth. Households with new sources of income spend money, increasing aggregate demand which then leads to increased prices. While it should lead to some upward pressure in most consumption categories, one of particular interest to Hunneman Research, and Boston for that matter, is multifamily rent. The chart below looks at a labor force and rent indices, starting in September of 2014.</p> <p><img data-attachment-id="1796" data-permalink="https://naihunnemanblog.com/2018/10/08/labor-force/graph-5/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=676" data-orig-size="1254,912" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="graph 5" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=676?w=676" class="alignnone size-full wp-image-1796" src="https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=676" alt="graph 5" srcset="https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/10/graph-5.png 1254w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Several interesting trends arise. It is worth noting the separation of growth in the last few years between Lower-Mid quality housing and Luxury housing. Lower-Mid apartment rents have grown by more than 7% since 2017, compared to 5.5% for Luxury and 6% for Upper-Mid rents. However, things really begin to pick in 2018. Rent growth in the three listed apartment classes began rising only a month or two after the local labor force took off. While labor force growth is certainly not the only reason, new sources of income for households in combination with improving wage growth and an income shock to consumers through last year’s tax cuts has created an inflationary environment for consumers.</p> <p>For all of those economists out there we know correlation does not mean causality. While a hot labor market is usually accompanied by price inflation as households spend more of their new income and demand increases, there are other reasons apartment rents would increase. In fact, the sizable rent increase in early 2015 was not accompanied by a significant change in the labor force.</p> <p>The size of labor market growth is good news for Massachusetts workers and landlords, especially as more firms are reporting problems finding labor to meet their needs. As rents and other prices continue their upward march, we should watch wage gains closely as they hold the key to whether this new labor market boom is built on match sticks or it turns in to solid economic growth for the Bay State.</p> <p><em>This post was written by Hunneman Research Analyst, Joey Biasi.</em></p> https://naihunnemanblog.com/2018/10/08/labor-force/feed/ 0 hunnemanre Graph 1 Graph 2 Graph 3 Graph 4 graph 5 2018-10-08 13:33 +00:00 2018-10-08 08:33 -05:00 http://naihunnemanblog.com/?p=1775 https://naihunnemanblog.com/2018/09/13/space-banking/ Uncategorized Space Banking In the course of the business cycle the economy goes through periods of expansion and contraction. When the economy contracts, businesses are forced to cut costs, often in the form of laying off workers. However, in times of economic tribulation, most firms remain bound to leases whose terms are in no way reliant on their &#8230; <a href="https://naihunnemanblog.com/2018/09/13/space-banking/" class="more-link">Continue reading <span class="screen-reader-text">Space Banking</span></a> Thu, 13 Sep 2018 20:07:56 Z https://naihunnemanblog.com/2018/09/13/space-banking/#respond Hunneman <p>In the course of the business cycle the economy goes through periods of expansion and contraction. When the economy contracts, businesses are forced to cut costs, often in the form of laying off workers. However, in times of economic tribulation, most firms remain bound to leases whose terms are in no way reliant on their economic health. This could potentially create a confluence of negative realities for firms: they will employ fewer people, use less of their office space, and pay rents that are above the market price. The byproduct of this reality is dormant office space that is often hard to subdivide or repurpose. This unused space, though listed as occupied, is known as grey space (also commonly referred to as shadow space). More recently, our research and analytics team at Hunneman have begun to examine a closely related practice called space banking. According to our definition, space banking, unlike grey space, is intentional. In times of strong economic expansion, many firms project rapid growth; this growth corresponds with the need for more workers and, consequently, more commercial space. Space banking occurs when firms sign new leases with more space than they need in anticipation of growth. In the meantime, the extra space either remains unused or is subleased until the primary tenant needs it. This term is gaining traction among commercial real estate (CRE) experts here in Boston. For example, the term space banking was invoked at the NAIOP mid-year review in relation to activity in the laboratory market in Cambridge where the combination of high rents and scarce lab space has sparked the practice of space banking among area life science companies.</p> <p>Space banking can be healthy. If a firm has a solid product or can confidently assert that their expansion into new markets will be successful, then preemptively leasing a larger workspace is nothing more than a calculated, prudent business move. The firm can lock in a lease agreement that works for them long term and can hopefully save some money through subleasing the excess space.  However, if a firm projects growth that is simply unrealistic, then space banking can go horribly wrong. If a firm doesn’t have a concrete product or service to market, then the presumption of their ability to fill a newer, larger space is speculative. Nonetheless, without claiming that space banking is necessarily good or bad, it must be noted that this phenomenon requires the collective attention of the CRE community. It is something we intend to take a deeper look into.</p> <p>To begin our research into space banking and grey space, we studied a 2010 report from Property and Portfolio Research (PPR, now known as CoStar Market Analytics) that looked at grey space in the years following the 2008 financial crisis and subsequent recession. For the purposes of our research, we began by using the methodology laid out in the PPR report as the basis to determine the amount of grey space in the office market. In order to calculate grey space, one must find the usage factor, which is the average amount of square feet per employee in a metro office market:</p> <p><em>Usage factor (Sq. Ft. Per Employee) = Occupied Office Space/Office Using Employment</em></p> <p>Secondly, we determine the implied demand for office space that exists in the market. In other words, we determine the natural usage factor for a market using their <em>lowest</em> usage rate between 1998 and 2018. We then estimate what the demand for office square footage would be given a markets employment level and natural usage rate. Finally, to calculate grey space we must subtract actual demand for office space from the implied demand for office space.</p> <p><em>Grey Space (Sq. Ft.) = (Office Using Employment * Natural Usage Factor) – Actual Demand</em></p> <p>It should be noted that, though we use the same equation as PPR, we define the natural usage factor as the <em>minimum</em> usage factor. This not only helps us avoid a situation where the calculation would yield a negative grey space figure, which is a strange metric conceptually, but also allows us to get a better idea of how much space is “available.” In other words, using the minimum usage factor allows us to see what is the maximum number of employees a firm can house on a square foot basis.</p> <p>Finally, we divided the grey space by total occupied space to arrive at the implied grey space vacancy rate, which is what we will use to compare across metros:</p> <p><em>Implied Grey Space Vacancy Rate = (Grey Space/Occupied Office Space) *100</em></p> <p>We use the implied ratio instead of the actual square footage because different metros have different office inventories. For example, New York’s total office inventory more than doubles the next largest metro. If we were to simply show square footage, New York would appear to have had a massive amount of grey space following the 2008 recession instead of hovering around the average of the seven metro areas we studied.</p> <p>PPR’s report, written just as the economy was emerging from the worst part of the recession, highlighted a problem that was sure to have an impact on the CRE industry. They saw the prospect of firms, who were beginning to rebound and hire again, filling their abundance of extra room, or grey space, instead of expanding. They forecast that it would take until 2013 for the economy to add back the 1.35 million office-using jobs needed to return to remove the grey space overhang. Unlike PPR, as of the time of this analysis we are not facing a massive grey space problem, but as we reach the mature part of the current business cycle, we believe it is useful to think about what effect current CRE trends, like space banking, could have during and immediately after a recession.</p> <p>For the purposes of our research, we examined grey space trends in seven major real estate markets in the United States: Boston, New York City, Washington, D.C., Seattle, San Francisco, Los Angeles, and Chicago. To highlight some of the trends we will be looking at, we have included two charts. To start, we looked at usage factor, which is a component of our grey space calculation.</p> <p><img data-attachment-id="1776" data-permalink="https://naihunnemanblog.com/2018/09/13/space-banking/attachment/1/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=676" data-orig-size="1200,800" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="1" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=676?w=676" class="alignnone size-full wp-image-1776" src="https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=676" alt="1" srcset="https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/09/1.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/09/1.png 1200w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Usage factor varies a lot by each metro. Interestingly, most of the metros reached their minimum usage factor in the lead up to the 2001 recession, and had slow post recession recoveries throughout the mid 2000’s. During the 2008 recession, all metros but Washington D.C., which has a unique employment composition due to federal government employees, saw large increases in their usage factor as firms laid off employees across the country. In the current recovery, most of the metros have followed a slow but steady decline in their usage rate and firms hire more workers. The two exceptions are New York and San Francisco; in both of these markets, rents have recovered quickly and demand has been outsized. These metros have also seen strong growth in coworking space, where the square feet per employee is particularly low.</p> <p>Usage factor is an important component of the implied grey space vacancy rate, which is shown below.</p> <p><img data-attachment-id="1777" data-permalink="https://naihunnemanblog.com/2018/09/13/space-banking/attachment/2/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=676" data-orig-size="1200,800" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="2" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=676?w=676" class="alignnone size-full wp-image-1777" src="https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=676" alt="2" srcset="https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/09/2.png?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/09/2.png 1200w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Notably, most of the metros remain fairly close to each other. The outlier, San Francisco, saw its grey space sky rocket following the 2001 recession, only to plateau for 10 years. Part of this is likely to do with how we calculated grey space, where in the lead up to the 2001 recession San Francisco’s usage rate decreased very quickly. Unfortunately for San Francisco, it suffered a particularly harsh downturn in 2001, and it took the tech boom of recent years for the market to finally soak up its grey space. Regarding the seven metros as a whole, most are currently running at or near zero grey space which is indicative of a strong labor market in combination with higher construction costs, which is curtailing speculative office construction in some markets.</p> <p>The importance of understanding the concepts of grey space should not be overlooked. Grey space is the physical amount of office space that companies are currently paying rent for, but are not using or is unneeded to run efficiently. Essentially, it is unoccupied space that is off the market and difficult to measure, but it can indicate a softness in office real estate beyond the standard measures of market health. The fundamental conclusion that we must understand is that this phenomenon of preemptive leasing and underutilized space must be examined further. At the very least, accounting for this reality will give analysts, brokers, and appraisers a more accurate outlook on the vacancy statistics in the office market, especially during economic recoveries. At most, this calculation could provide meaningful insight into the overall health of the office market. Now that the economic next economic downturn is likely approaching, we at Hunneman research feel that now is a good time to explore how grey space may manifest itself in a market that has innovated and changed over the last decade. Stay tuned for an upcoming white paper where we will delve deeper in to this interesting subject.</p> <p><em>This post was written by Hunneman Research Analyst, Joey Biasi and Hunneman Research Intern, John Olds</em></p> <div id="jp-post-flair" class="sharedaddy sd-like-enabled sd-sharing-enabled"> <div class="sharedaddy sd-sharing-enabled"></div> </div> https://naihunnemanblog.com/2018/09/13/space-banking/feed/ 0 hunnemanre 1 2 2018-09-13 20:07 +00:00 2018-09-13 15:07 -05:00 http://naihunnemanblog.com/?p=1771 https://naihunnemanblog.com/2018/08/02/nai-hunneman-completes-30100-square-foot-lease-for-altitude-trampoline-park-in-north-attleboro/ Uncategorized NAI Hunneman Completes 30,100 Square Foot Lease for Altitude Trampoline Park in North Attleboro BOSTON, MA – NAI Hunneman announced today the completion of a 30,100 square foot lease transaction with Altitude Trampoline Park for a new location within the Christmas Tree Shops Plaza at 1505 S. Washington Street in North Attleboro. This is Altitude’s seventh New England location, which recently opened on July 20th. The state of the &#8230; <a href="https://naihunnemanblog.com/2018/08/02/nai-hunneman-completes-30100-square-foot-lease-for-altitude-trampoline-park-in-north-attleboro/" class="more-link">Continue reading <span class="screen-reader-text">NAI Hunneman Completes 30,100 Square Foot Lease for Altitude Trampoline Park in North&#160;Attleboro</span></a> Thu, 02 Aug 2018 18:20:41 Z https://naihunnemanblog.com/2018/08/02/nai-hunneman-completes-30100-square-foot-lease-for-altitude-trampoline-park-in-north-attleboro/#respond Hunneman <p><img data-attachment-id="1772" data-permalink="https://naihunnemanblog.com/2018/08/02/nai-hunneman-completes-30100-square-foot-lease-for-altitude-trampoline-park-in-north-attleboro/alt-trampoline-park/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=676" data-orig-size="960,540" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Alt Trampoline Park" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=676?w=676" class="alignnone size-full wp-image-1772" src="https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=676" alt="Alt Trampoline Park" srcset="https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/08/alt-trampoline-park.jpg 960w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>BOSTON, MA – NAI Hunneman announced today the completion of a 30,100 square foot lease transaction with Altitude Trampoline Park for a new location within the Christmas Tree Shops Plaza at 1505 S. Washington Street in North Attleboro. This is Altitude’s seventh New England location, which recently opened on July 20th. The state of the art indoor trampoline park features wall-to-wall trampolines, as well as an abundance of attractions for guests of all ages including Dodgeball, Wipeout, Foam Pits, Trapeze, Log Roll, Rock Wall, Kid Zone and Basketball Dunking Lanes.</p> <p>The NAI Hunneman team of Cathy Minnerly, Sean Hannigan and Glenne Bachman represented Altitude Trampoline Park, while the landlord, The Lightstone Group, was represented by Angelo Pappas of Charter Realty &amp; Development.</p> <p>“1505 S. Washington Street is another home run location for Altitude,” said Sean Hannigan, of NAI Hunneman. “The site is easily accessible from I-295/95 and located just minutes from other shopping centers and retail attractions.”</p> <p>Kerry Hughes, Vice President of Sales for Altitude Trampoline Park said, “We are excited to have another location opening in Massachusetts. With locations in Billerica, Marlborough, Avon, and now North Attleboro, we are continuing to grow our footprint in the area.”</p> <p>The NAI Hunneman team has also recently completed lease transactions for new Altitude Trampoline Park locations in Concord, Merrimack and Pelham, New Hampshire alongside Deana Arden of NAI Norwood. For more information on Altitude North Attleboro, please visit their website at <a href="https://www.altitudenorthattleboro.com/">https://www.altitudenorthattleboro.com/</a>.</p> <p><strong><u>About NAI Hunneman:</u></strong></p> <p>Headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. NAI Hunneman is a member of NAI Global, the premier network of independent commercial real estate firms and one of the largest commercial real estate service providers worldwide. NAI Global manages a network of over 7,000 professionals and more than 400 offices throughout the world. NAI professionals work together with its global management team to help clients strategically optimize their real estate assets. To learn more about NAI Hunneman and the NAI Global Network, please visit naihunneman.com.</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>###</p> <p>&nbsp;</p> <p>&nbsp;</p> https://naihunnemanblog.com/2018/08/02/nai-hunneman-completes-30100-square-foot-lease-for-altitude-trampoline-park-in-north-attleboro/feed/ 0 hunnemanre Alt Trampoline Park 2018-08-02 18:20 +00:00 2018-08-02 13:20 -05:00 http://naihunnemanblog.com/?p=1765 https://naihunnemanblog.com/2018/08/02/the-importance-of-data-collection/ Uncategorized The Importance of Data Collection Economics is a wonderful subject. It combines the seemingly-opposing worlds of social science and mathematics. Economists, despite being rather empirical in their methodology, disagree on many of the principles that form the foundation of Economics. This reality, though seemingly daunting, actually allows for a broad spectrum of analysis from qualified individuals in an enigmatic field. &#8230; <a href="https://naihunnemanblog.com/2018/08/02/the-importance-of-data-collection/" class="more-link">Continue reading <span class="screen-reader-text">The Importance of Data&#160;Collection</span></a> Thu, 02 Aug 2018 12:09:57 Z https://naihunnemanblog.com/2018/08/02/the-importance-of-data-collection/#respond Hunneman <p><img data-attachment-id="1769" data-permalink="https://naihunnemanblog.com/2018/08/02/the-importance-of-data-collection/aaf5085167e3c3fd871506452911-1443941/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=676" data-orig-size="1200,747" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="aaf5085167e3c3fd871506452911-1443941" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=676?w=676" class="alignnone size-full wp-image-1769" src="https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=676" alt="aaf5085167e3c3fd871506452911-1443941" srcset="https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg?w=1024 1024w, https://naihunnemanblog.files.wordpress.com/2018/08/aaf5085167e3c3fd871506452911-1443941.jpg 1200w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Economics is a wonderful subject. It combines the seemingly-opposing worlds of social science and mathematics. Economists, despite being rather empirical in their methodology, disagree on many of the principles that form the foundation of Economics. This reality, though seemingly daunting, actually allows for a broad spectrum of analysis from qualified individuals in an enigmatic field. However, I would be willing to bet that there is one area where economists, regardless of specialization, could come together in agreement: data collection. The constant issue that plagues the field of economics is consistent and accurate data collection. This is an important problem that deserves our collective attention.</p> <p>Here at NAI Hunneman, the research department compiles and analyzes data to create quarterly reports for the Metro Boston area. We also produce white papers and other research materials. In the commercial real estate sector of the economy, it is particularly important to have accurate data. With accurate data, brokers, analysts, appraisers, and tenants will be at a collective advantage. There are five specific reasons why accurate data is necessary for the commercial real estate community.</p> <ol> <li><strong>It saves everybody’s time.</strong></li> </ol> <p>If real estate had reliable data available, the process of obtaining credible information would become shorter. When real estate professionals have more time and better data, they can do their jobs faster. Moreover, the work of these commercial real estate professionals will become more accurate.</p> <ol start="2"> <li><strong>Better data means better quality analysis. </strong></li> </ol> <p>Economists complete analyses on the real estate markets in their home cities, the nation, and the world. Their analysis helps brokers, appraisers, tenants, and non-real estate economists understand the market. If analysts and economists were given up-to-date, accurate data, they could make more specific analyses, more accurate predictions, and provide the CRE community with a higher volume of information.</p> <ol start="3"> <li><strong>Brokers can make better informed decisions. </strong></li> </ol> <p>A brokerage team can give itself an advantage on the competition by maintaining accurate data on properties and tenants. Good data makes brokers competitive against their peers. Knowing more about a community or a building can breed goodwill with a client. By putting a premium on accuracy, brokers can give their clients the best possible information to ensure they are making the most informed decision.</p> <ol start="4"> <li><strong>Appraisers can’t accurately assess properties without robust data.</strong></li> </ol> <p>Appraisers, in their efforts to assess the market value of a property, need pertinent information to do their work. For example, it can be very easy for a building’s renovations to go unreported in a database. Appraisers rely on accurate data in order to make prudent estimates about the fair market value of a property. Instances where appraisals miss additions or other new features due to misinformation are problematic.</p> <ol start="5"> <li><strong>Buyers/ Investors need good data to make decisions. </strong></li> </ol> <p>There will always be firms buying and selling real estate. However, a firm’s decisions are only as good as the data that drives them. When making investment decisions, investors will compile the best available information and make an informed decision. Better data means better investment decisions. Owners and landlords rely on accurate data to influence their decisions. They rely on data to know the state of the market and the risk involved with potential investments. The more these firms can count on the available data, the more they will make informed investment decisions.</p> <p>The fundamental point is this: with a healthy source of reliable data, real estate professionals, and those who interact with them, will begin their work from a more informed position. Analysts will be able to provide their colleagues with accurate, micro-level analysis; brokers will be able to compete more effectively and guide their clients more responsibly; appraisers will be able to provide more accurate property values; and clients will be able to make informed decisions about real estate that will benefit their employees and the economy as a whole.</p> <p><em>This post was written by NAI Hunneman Research Intern John Olds</em></p> https://naihunnemanblog.com/2018/08/02/the-importance-of-data-collection/feed/ 0 hunnemanre aaf5085167e3c3fd871506452911-1443941 2018-08-02 12:09 +00:00 2018-08-02 07:09 -05:00 http://naihunnemanblog.com/?p=1762 https://naihunnemanblog.com/2018/07/31/nai-hunneman-completes-two-leases-totaling-64000-square-feet-in-needham/ Uncategorized NAI Hunneman Completes Two Leases Totaling 64,000 Square Feet in Needham BOSTON, MA – NAI Hunneman announces the completion of a 47,000 square foot lease transaction with Brigham and Women’s Physicians Organization and a 17,000 square foot lease with ClearEdge Partners to relocate to 254 Second Avenue in Needham. The building is in the process of undergoing a major transformation with the addition of a top tier &#8230; <a href="https://naihunnemanblog.com/2018/07/31/nai-hunneman-completes-two-leases-totaling-64000-square-feet-in-needham/" class="more-link">Continue reading <span class="screen-reader-text">NAI Hunneman Completes Two Leases Totaling 64,000 Square Feet in&#160;Needham</span></a> Tue, 31 Jul 2018 15:23:23 Z https://naihunnemanblog.com/2018/07/31/nai-hunneman-completes-two-leases-totaling-64000-square-feet-in-needham/#respond Hunneman <div data-shortcode="caption" id="attachment_1763" style="width: 3990px" class="wp-caption alignnone"><img data-attachment-id="1763" data-permalink="https://naihunnemanblog.com/2018/07/31/nai-hunneman-completes-two-leases-totaling-64000-square-feet-in-needham/254-second-avenue/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=676" data-orig-size="3980,2346" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="254 Second Avenue" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=676?w=676" class="alignnone size-full wp-image-1763" src="https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=676" alt="254 Second Avenue" srcset="https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=1350 1350w, https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/07/254-second-avenue-e1533050577925.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" /><p class="wp-caption-text">On behalf of owner, Grander Capital Partners, NAI Hunneman’s Suburban Team completes lease transactions with Brigham &amp; Women’s Physicians Organization and ClearEdge Partners</p></div> <p>BOSTON, MA – NAI Hunneman announces the completion of a 47,000 square foot lease transaction with Brigham and Women’s Physicians Organization and a 17,000 square foot lease with ClearEdge Partners to relocate to 254 Second Avenue in Needham. The building is in the process of undergoing a major transformation with the addition of a top tier amenity package that includes a fitness center with men’s and women’s locker rooms, an upscale grab and go café, an outdoor patio, and renovated common areas.</p> <p>The NAI Hunneman team of Ned Halloran, Leeanne Rizzo, and Sean Hannigan represented the landlord, Grander Capital Partners. ClearEdge Partners was represented by Andrew Whipple and Brendan Cohn from JLL in their relocation from Newton, while Julie Gray from McCall &amp; Almy represented Brigham and Women’s Physicians Organization.</p> <p>“Grander Capital Partners’ hands on approach to ownership and operations was a huge advantage to help secure commitments from these two tenants,” said Ned Halloran, of NAI Hunneman. “The commitment from ownership to perform major building updates allowed us to reposition the building in the market and secure long-term commitments from ClearEdge and Brigham and Women’s.”</p> <p><strong><u>About NAI Hunneman:</u></strong></p> <p>Headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. NAI Hunneman is a member of NAI Global, the premier network of independent commercial real estate firms and one of the largest commercial real estate service providers worldwide. NAI Global manages a network of over 7,000 professionals and more than 400 offices throughout the world. NAI professionals work together with its global management team to help clients strategically optimize their real estate assets. To learn more about NAI Hunneman and the NAI Global Network, please visit naihunneman.com.</p> <p>###</p> https://naihunnemanblog.com/2018/07/31/nai-hunneman-completes-two-leases-totaling-64000-square-feet-in-needham/feed/ 0 hunnemanre 254 Second Avenue 2018-07-31 15:23 +00:00 2018-07-31 10:23 -05:00 http://naihunnemanblog.com/?p=1759 https://naihunnemanblog.com/2018/07/30/nai-hunneman-secures-deal-for-massachusetts-logistics-firm/ Uncategorized NAI Hunneman Secures Deal for Massachusetts Logistics Firm BOSTON, MA – NAI Hunneman announces today that it has completed a lease agreement with Champagne Logistics to grow into a 65,000 square foot space at 431 Washington Street in Franklin, Massachusetts. The new space will allow Champagne Logistics to relocate from its current location at 15 Liberty Way in Franklin, and significantly expand. The &#8230; <a href="https://naihunnemanblog.com/2018/07/30/nai-hunneman-secures-deal-for-massachusetts-logistics-firm/" class="more-link">Continue reading <span class="screen-reader-text">NAI Hunneman Secures Deal for Massachusetts Logistics&#160;Firm</span></a> Mon, 30 Jul 2018 18:10:45 Z https://naihunnemanblog.com/2018/07/30/nai-hunneman-secures-deal-for-massachusetts-logistics-firm/#respond Hunneman <div data-shortcode="caption" id="attachment_1760" style="width: 4010px" class="wp-caption alignnone"><img data-attachment-id="1760" data-permalink="https://naihunnemanblog.com/2018/07/30/nai-hunneman-secures-deal-for-massachusetts-logistics-firm/dcim100mediadji_0337-jpg/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=676" data-orig-size="4000,1652" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="DCIM100MEDIADJI_0337.JPG" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=676?w=676" class="alignnone size-full wp-image-1760" src="https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=676" alt="DCIM100MEDIADJI_0337.JPG" srcset="https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/07/431-washington-e1532974217971.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" /><p class="wp-caption-text">Minnerly, Osvold, &amp; Hannigan complete 65,000 Square Foot Lease in Franklin</p></div> <p>BOSTON, MA – NAI Hunneman announces today that it has completed a lease agreement with Champagne Logistics to grow into a 65,000 square foot space at 431 Washington Street in Franklin, Massachusetts. The new space will allow Champagne Logistics to relocate from its current location at 15 Liberty Way in Franklin, and significantly expand.</p> <p>The NAI Hunneman South Team of Cathy Minnerly, Ovar Osvold, and Sean Hannigan represented the landlord, GFI Partners, in the transaction, while Champagne Logistics was represented by Danielle Simbliaris of CBRE.</p> <p>“Remaining in the Franklin area was important to Champagne,” said Osvold. “431 Washington accomplished this goal, along with providing them the ability to expand and grow their business without much disruption, creating a win-win deal for both Landlord and Tenant.”</p> <p><strong><u>About NAI Hunneman:</u></strong></p> <p>Headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. NAI Hunneman is a member of NAI Global, the premier network of independent commercial real estate firms and one of the largest commercial real estate service providers worldwide. NAI Global manages a network of 7,000 professionals and 400 offices throughout the world. NAI professionals work together with its global management team to help clients strategically optimize their real estate assets. To learn more about NAI Hunneman and the NAI Global Network, please visit <u>naihunneman.com.</u></p> <p>&nbsp;</p> <p>###</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> https://naihunnemanblog.com/2018/07/30/nai-hunneman-secures-deal-for-massachusetts-logistics-firm/feed/ 0 hunnemanre DCIM100MEDIADJI_0337.JPG 2018-07-30 18:10 +00:00 2018-07-30 13:10 -05:00 http://naihunnemanblog.com/?p=1752 https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/ Uncategorized ICSC Panel – Into the Mindset of Millennials From July 16-18, retailers and real estate professionals convened for the International Council of Shopping Centers’ (ICSC) New England Conference. The conference, taking place at the John B. Hynes Convention Center in Boston, consisted of networking opportunities, keynote speakers, and concurrent panel sessions. One of the panel discussions was moderated by NAI Hunneman’s Research Director, &#8230; <a href="https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/" class="more-link">Continue reading <span class="screen-reader-text">ICSC Panel – Into the Mindset of&#160;Millennials</span></a> Thu, 19 Jul 2018 20:30:50 Z https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/#respond Hunneman <p>From July 16-18, retailers and real estate professionals convened for the <a href="https://www.icsc.org/attend-and-learn/events/details/new-england-conference-deal-making2">International Council of Shopping Centers’ (ICSC) New England Conference</a>. The conference, taking place at the John B. Hynes Convention Center in Boston, consisted of networking opportunities, keynote speakers, and concurrent panel sessions. One of the panel discussions was moderated by NAI Hunneman’s Research Director, Liz Berthelette. Her panel was tasked with discussing the evolving role that retail and branding is playing in a society that consists of a plurality of millennials.</p> <p><img data-attachment-id="1753" data-permalink="https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/icsci-copy/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=676" data-orig-size="698,211" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="ICSCI &#8211; Copy" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=676?w=676" class="alignnone size-full wp-image-1753" src="https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=676" alt="ICSCI - Copy" srcset="https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/07/icsci-copy.png 698w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>The panel, aptly named “Into the Mindset of Millennials,” consisted of three Boston-based millennials: Alan Kelly, Christina Attaway, and Nikki Crugnale. Alan is an Irish immigrant who serves as the Director of Leasing for the Northeast at <a href="http://www.waterstonepg.com/">Waterstone Properties Group</a>. His perspective and experience stood in stark contrast to the stereotypes given to millennials. Alan and his family live in Central Massachusetts; he bucks the trend of millennials moving to urban areas. Much of Alan’s analysis harped on his, and others’, desire to bring back human interaction in the commerce experience. Christina serves as the Manager of Social Media and Marketing at <a href="https://www.urbanmeritage.com/">UrbanMeritage</a>/<a href="https://www.newburystboston.com/avantage-newbury/">Advantage Newbury</a>. Her outlook focused on the benefits of social media and the conveniences afforded to those who live in the city. Nikki is the owner of <a href="https://graemroasters.com/">Graem Nuts and Chocolate</a>. As an entrepreneur, Nikki gave the discussion a unique perspective. Her central themes included how social media can help grow a business and how millennials can be both innovative and financially responsible.</p> <p>Perhaps the most interesting parts of the discussion came when the panel discussed some of the misconceptions and generalizations that have come to cloud the perspectives of millennial observers. They also discussed urban vs. suburban living; e-commerce vs. in-person shopping; and attractiveness of brands. Regarding housing, only <a href="https://www.cnbc.com/2018/04/26/millennial-homeownership-suddenly-drops-after-a-good-run.html">35.3%</a> of millennials own a home compared to 64.2% of the population at large. This suggests that most millennials are living in apartments which, presumably, would be in urban areas. Further, the conveniences of urban living seem to be attractive to millennials. Shorter commute times, easy access to gyms and shopping centers, easy mobility with public transportation, and bustling social scenes are just a few of the many feature that millennials find attractive in urban life.</p> <div data-shortcode="caption" id="attachment_1754" style="width: 4042px" class="wp-caption alignnone"><img data-attachment-id="1754" data-permalink="https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/img_8240-copy/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=676" data-orig-size="4032,2408" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="IMG_8240 &#8211; Copy" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=676?w=676" class="alignnone size-full wp-image-1754" src="https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=676" alt="IMG_8240 - Copy" srcset="https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/07/img_8240-copy-e1532032215605.jpeg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" /><p class="wp-caption-text">Liz Berthelette, Nikki Crugnale, Christina Attaway, Alan Kelly</p></div> <p>Regarding a millennial’s shopping preferences, there was no clear consensus among the group. According to a <a href="https://www.fierceretail.com/operations/millennials-believe-brick-and-mortar">recent study</a>, 82% of millennials prefer a brick and mortar shopping experience but expect cross channel experiences, superior services, and personalized promotions. However, in the last ten years, <a href="https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf">e-commerce has jumped</a> from 3.6% of total retail sales to 9.5%. These conflicting numbers depict a diverse set of preferences among millennials. Treating this generation as homogeneous would be a mistake. Nonetheless, the advent of e-commerce has allowed millennial shoppers to choose the optimal experience for them. Most shoppers seem to buy bigger items in person while smaller, less-consequential items are often bought online.</p> <p>The evolving shopping experience led nicely into a discussion of branding. Branding to millennials will take new and innovative strategies from marketers. <a href="https://www.mediapost.com/publications/article/217451/bcg-studies-ways-gen-y-rewards-brand-soul.html">48% of millennials</a> try to frequent companies that actively support social causes. As panelist Alan Kelly put it, “for millennials, mediocre doesn’t cut it anymore.” Effectively, as e-commerce becomes more prevalent and millennials become used to the chic designs of urban shops, the status quo for designing and branding becomes the pricey, flashy brands from the city. Also, millennials tend to value the story behind the brand. Aside from support of social causes, millennials like to know the story behind the retailer. Are they the first in their family to attend college? Are they first generation immigrants? Did they grow up poor? Accessible answers to questions like these tend to get millennials in the door.</p> <p>It is important for business owners and leaders not to forget the obvious trends that are driven by millennials. Many prefer urban living. They are shopping online. They have a high demand for a quality brand. But perhaps the central answer derived from the “Inside the Mindset of Millennials” panel was that it is wrong to paint millennials with a broad brush. For every millennial that job hops, accrues debt, and lives with their parents, there exists a millennial that bucks those stereotypes.</p> <p><em>This post was written by NAI Hunneman Research Intern John Olds</em></p> https://naihunnemanblog.com/2018/07/19/icsc-panel-into-the-mindset-of-millennials/feed/ 0 hunnemanre ICSCI - Copy IMG_8240 - Copy 2018-07-19 20:30 +00:00 2018-07-19 15:30 -05:00 http://naihunnemanblog.com/?p=1744 https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/ Uncategorized The Fed Increased Interest Rates; Don’t Panic. The Federal Reserve decided to raise its benchmark rate to a range of 1.75 to 2 percent recently, the second rate hike this year and the 8th since 2015. The Federal Open Market Committee also signaled they expect to have four total increases this year, a departure from their March projection of three. There is &#8230; <a href="https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/" class="more-link">Continue reading <span class="screen-reader-text">The Fed Increased Interest Rates; Don’t&#160;Panic.</span></a> Mon, 25 Jun 2018 18:41:07 Z https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/#respond Hunneman <p><img data-attachment-id="1747" data-permalink="https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/business-people/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=676" data-orig-size="2716,1474" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Business people" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=676?w=676" class="alignnone size-full wp-image-1747" src="https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=676" alt="Business people" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/06/istock_000019168462large-e1529951962695.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>The Federal Reserve decided to raise its benchmark rate to a range of 1.75 to 2 percent recently, the second rate hike this year and the 8<sup>th</sup> since 2015. The Federal Open Market Committee also signaled they expect to have four total increases this year, a departure from their March projection of three. There is some disagreement over the number of rate hikes for 2018, with 9 of the 16 FOMC participants expecting the rate to increase by 50 basis points or more. The remaining 7 estimated one or no more increases.</p> <p>The acceleration of the FOMC’s policy from its original forward guidance was expected by many Fed watchers as the U.S. labor market continues to strengthen. While inflation is still running below the 2 percent target rate, the unemployment rate is well below what many economists consider the natural rate of unemployment and the competition for labor should put upward pressure on wages and inflation. The committee revised its projections for inflation, real GDP, and unemployment in 2018 to reflect these strong gains and removed language suggesting monetary policy would be accommodative for some time.</p> <p>Generally, individual rate hikes should not have a major impact on Boston commercial real estate markets. For those of us whose Econ 101 is a little rusty, the Fed uses rate hikes to control the pace of economic activity by increasing the rate at which banks can borrow overnight from each other. Banks respond by raising their own rates which increases the cost of financing and can reduce demand in the real estate market and that can push up cap rates. However, cap rates are affected by more than just capital costs and despite three years of the fed slowly increasing rates, cap rates in Boston’s office market have continued to slowly decline. Economic growth, supply of commercial space, and labor market conditions will more likely affect local commercial real estate markets and cap rates than slow moving, predictable interest rate hikes.</p> <p><img data-attachment-id="1745" data-permalink="https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/chart-final/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=676" data-orig-size="691,410" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Chart Final" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=676?w=676" class="alignnone size-full wp-image-1745" src="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=676" alt="Chart Final" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/06/chart-final.jpg 691w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>What does this mean long term? The Fed policy of rate hikes while also shrinking their balance sheet will ultimately be a drag on economic growth. However, the narrative remains positive. The expectation of an additional rate hike while still unwinding their balance sheet and the committees projections show they are confident the U.S. economy can sustain itself without accommodative monetary policy while also giving policy makers space from the zero lower bound if they need it. While increased rates may weigh on economic growth, a strong U.S. economy is a tailwind for Boston’s commercial real estate markets.</p> <p><img data-attachment-id="1746" data-permalink="https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/chart-final-2/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=676" data-orig-size="624,514" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Chart Final 2" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=676?w=624" class="alignnone size-full wp-image-1746" src="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=676" alt="Chart Final 2" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png 624w, https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/chart-final-2.png?w=300 300w" sizes="(max-width: 624px) 100vw, 624px" /></p> <p><em>This post was written by NAI Hunneman Research Analyst Joey Biasi</em></p> <h6>Source: Board of Governors, June 2018</h6> https://naihunnemanblog.com/2018/06/25/the-fed-increased-interest-rates-dont-panic/feed/ 0 hunnemanre Business people Chart Final Chart Final 2 2018-06-25 18:41 +00:00 2018-06-25 13:41 -05:00 http://naihunnemanblog.com/?p=1737 https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/ Uncategorized Suburbs Dominate Recent Office Sales As discussed in our Q1 2018 office market report, transaction volume failed to make headway in Boston’s office market during the first quarter of 2018. With that said, Boston remains a highly-desirable destination for capital among all investor types, and the limited inventory of available properties for sale continues to drive up pricing. Similar to national &#8230; <a href="https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/" class="more-link">Continue reading <span class="screen-reader-text">Suburbs Dominate Recent Office&#160;Sales</span></a> Tue, 05 Jun 2018 15:46:43 Z https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/#respond Liz Berthelette <p>As discussed in our <a href="https://user-169168.cld.bz/Q1-2018-OfficeReport">Q1 2018 office market report</a>, transaction volume failed to make headway in Boston’s office market during the first quarter of 2018. With that said, Boston remains a highly-desirable destination for capital among all investor types, and the limited inventory of available properties for sale continues to drive up pricing.</p> <p><img data-attachment-id="1740" data-permalink="https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/abp_7513_edited/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=676" data-orig-size="4723,2128" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;8&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;NIKON D800&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1503665444&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;24&quot;,&quot;iso&quot;:&quot;640&quot;,&quot;shutter_speed&quot;:&quot;0.00025&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="ABP_7513_edited" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=676?w=676" class="alignnone size-full wp-image-1740" src="https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=676" alt="ABP_7513_edited" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/06/abp_7513_edited.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" /></p> <p>Similar to national office trends, suburban investment is on an upswing. Investors seeking higher yields and greater opportunities are driving this expanded activity. In fact, more than $1.3 billion in suburban assets have changed hands in the last two quarters. In Boston’s urban markets, which encompasses Cambridge, less than $500 million transacted during the same time frame. Three out of the top four largest first-quarter office transactions took place in the ‘burbs, with CrossHarbor Capital Partners’ $277 million purchase of Cross Point in Lowell representing the top deal. Spear Street Capital’s $88 million acquisition of the former Reebok campus in Canton was another major sale that closed in early 2018.</p> <p><img data-attachment-id="1738" data-permalink="https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/sales-data_quarterly-volume-002_edited/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=676" data-orig-size="1692,800" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Sales Data_Quarterly Volume (002)_edited" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=676?w=676" class="alignnone size-full wp-image-1738" src="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=676" alt="Sales Data_Quarterly Volume (002)_edited" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_quarterly-volume-002_edited.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" />As a result, pricing growth has finally started to gain some momentum in Greater Boston’s suburbs; expanding by 30% from Q1 2017 to Q1 2018. Barring this recent surge, suburban sale prices have remained relatively stable. It wasn’t until very recently that pricing had reached the previous cycle’s peak. While growth has slowed in the urban markets, pricing remains elevated near peak levels and the delta between urban/suburban pricing is as wide as ever.</p> <p><img data-attachment-id="1739" data-permalink="https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/sales-data_median-price-002_edited/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=676" data-orig-size="1700,857" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Sales Data_Median Price (002)_edited" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=676?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=676?w=676" class="alignnone size-full wp-image-1739" src="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=676" alt="Sales Data_Median Price (002)_edited" srcset="https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=676 676w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=1352 1352w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=150 150w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=300 300w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=768 768w, https://naihunnemanblog.files.wordpress.com/2018/06/sales-data_median-price-002_edited.jpg?w=1024 1024w" sizes="(max-width: 676px) 100vw, 676px" />As a result, when Downtown assets do change hands, buyers will pay a premium. Exan Capital recently purchased 40 Court Street, a 109,705-square-foot Class B asset in the Financial District for $54 million or $492 per square foot at a 4% cap rate. Stars Investment paid just $31 million for the building in 2014. The sale of 28 State Street is reportedly nearing completion, with an estimated price tag of $430 million or $745 per square foot. This would represent a 25% price increase from the asset’s 2014 sale. Finally, Tishman Speyer’s yet-to-be-delivered Pier 4 office building could fetch $420 million or a whopping $1,100 per square foot.</p> <p>Given these pricing trends and the lack of available product for sale in urban Boston, investors will continue to seek value in suburban assets.</p> https://naihunnemanblog.com/2018/06/05/suburbs-dominate-recent-office-sales/feed/ 0 lberthelette ABP_7513_edited Sales Data_Quarterly Volume (002)_edited Sales Data_Median Price (002)_edited 2018-06-05 15:46 +00:00 2018-06-05 10:46 -05:00 http://naihunnemanblog.com/?p=1732 https://naihunnemanblog.com/2018/05/02/nai-hunnemans-urban-advisory-group-brokers-5044-sf-lease-at-133-federal-street/ Company News Dowtown Boston Press Release Boston commercial real estate Financial District office NAI Hunneman’s Urban Advisory Group Brokers 5,044 SF Lease at 133 Federal Street Roth &#38; Evans represent Accu-Time Systems in relocation and expansion within Boston’s Financial District NAI Hunneman recently completed a 5,044 SF long-term lease transaction with Accu-Time Systems. The Connecticut based time and attendance technology company will be relocating from 175 Federal Street to the ninth floor of 133 Federal Street this Summer. NAI Hunneman Urban &#8230; <a href="https://naihunnemanblog.com/2018/05/02/nai-hunnemans-urban-advisory-group-brokers-5044-sf-lease-at-133-federal-street/" class="more-link">Continue reading <span class="screen-reader-text">NAI Hunneman’s Urban Advisory Group Brokers 5,044 SF Lease at 133 Federal&#160;Street</span></a> Wed, 02 May 2018 14:04:08 Z https://naihunnemanblog.com/2018/05/02/nai-hunnemans-urban-advisory-group-brokers-5044-sf-lease-at-133-federal-street/#respond Hunneman <p><img data-attachment-id="1733" data-permalink="https://naihunnemanblog.com/2018/05/02/nai-hunnemans-urban-advisory-group-brokers-5044-sf-lease-at-133-federal-street/133-federal/" data-orig-file="https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=641&#038;h=438" data-orig-size="982,672" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="133 Federal" data-image-description="" data-medium-file="https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=641&#038;h=438?w=300" data-large-file="https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=641&#038;h=438?w=676" class=" wp-image-1733 aligncenter" src="https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=641&#038;h=438" alt="133 Federal" width="641" height="438" srcset="https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=641&amp;h=438 641w, https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=150&amp;h=103 150w, https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=300&amp;h=205 300w, https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg?w=768&amp;h=526 768w, https://naihunnemanblog.files.wordpress.com/2018/05/133-federal.jpg 982w" sizes="(max-width: 641px) 100vw, 641px" /></p> <p style="text-align:center;"><em>Roth &amp; Evans represent Accu-Time Systems in relocation and expansion within Boston’s Financial District</em></p> <p>NAI Hunneman recently completed a 5,044 SF long-term lease transaction with Accu-Time Systems. The Connecticut based time and attendance technology company will be relocating from 175 Federal Street to the ninth floor of 133 Federal Street this Summer.</p> <p>NAI Hunneman Urban Advisory Group members Jason Roth &amp; Peter Evans represented Accu-Time in the transaction, while Gilbert Dailey and Tim Bianchi of Newmark Knight Frank represented the landlord, Transnational.</p> <p>“Accu-Time thoroughly examined the market but, in the end, 133 Federal Street offered the firm exactly what it was looking for, a centrally located, Class A building, along with a customized-buildout that allows them to accommodate growth without dramatically increasing their footprint,” said Roth.</p> <p>Accu-Time CFO Lisa Gladysz said, “NAI Hunneman’s Urban Advisory Group left no stone unturned, giving us an abundance of information on the market, guiding our evaluation process, and leading our lease negotiations. 133 Federal Street checked all the boxes; new space that will allow us to accommodate growth without significantly expanding our footprint, and a central downtown location that allows us to retain our existing employees and recruit additional talent.”</p> <p><strong><u>NAI Hunneman’s Urban Advisory Group</u></strong></p> <p>NAI Hunneman’s Urban Advisory Group provides landlords and tenants with the highest level of innovative real estate solutions focused on Boston’s core urban markets as well as its immediate inner suburban ring. The Urban Advisory Group consists of Peter Evans, Jason Roth, Colin Gordon, and Matthew Davis.</p> <p><strong><u>NAI Hunneman:</u></strong></p> <p>Headquartered in Boston, NAI Hunneman is a leading provider of commercial real estate services to corporations, institutions and the private market. NAI Hunneman is a member of NAI Global, the premier network of independent commercial real estate firms and one of the largest commercial real estate service providers worldwide. NAI Global manages a network of 7,000 professionals and 400 offices throughout the world. NAI professionals work together with its global management team to help clients strategically optimize their real estate assets. To learn more about NAI Hunneman, please visit <a href="http://www.naihunneman.com">www.naihunneman.com</a>.</p> <p style="text-align:center;">###</p> https://naihunnemanblog.com/2018/05/02/nai-hunnemans-urban-advisory-group-brokers-5044-sf-lease-at-133-federal-street/feed/ 0 hunnemanre 133 Federal 2018-05-02 14:04 +00:00 2018-05-02 09:04 -05:00