Q2-2018-IndustrialReport
CAPITAL MARKETS STATISTICS Property City/Submarket Mansfield Property
Property
100 Upland Drive 100 Upland Drive Norwood
560 West Street 560 West Street The Seyon Group The Seyon Group $38,500,000 $38,500,000 35 ,469
Property City/Submarket City/Submarket Buyer
Norwood Alexandria Real Estate Equities Alexandria Real Estate Equities 87,250,000 $
City/Submarket Mansfield Buyer
Buyer Price
Buyer Price Price Total SF Price/SF Cap Rate Total SF Price/SF Cap Rate
Price
87,250,000 $ 2 0,430
Total SF Price/SF Cap Rate
Total SF Price/SF Cap Rate
MEDIAN $/SF 200,430 $435 $435 7. 0% 7.30% $95
350,469 $110
SALES VOLUME ($)
NUMBER OF TRANSACTIONS
TOTAL SF
MEDIAN CAP RATE
$110
-
-
$477,935,956
111
3,955,082
6.7%
Sales Volume
Sales Volume SALES VOLUME
$700
TRENDS • Industrial is the new darling of commercial real estate investors both locally and nationally. Record-low vacancies and skyrocketing rents have led to unprecedented levels of activity in Boston’s industrial market in recent years.While sales volume in other asset types has been waning recently, industrial transactions have held steady. More than $900 million in industrial assets changed hands during the first half of 2018, which is on a par with peak-2016 levels as well as last year’s levels. Pricing continues to climb as well, with the median price per square foot reaching $95 in the second quarter.This represents a 5.8% increase from year- ago levels and a 44% increase over the last five years. • Several industrial portfolios traded during the second quarter, with private buyers accounting for 58% of total transaction volume. Jumbo Capital Management purchased the 8-building Xchange at Bedford, anchored by iRobot, for $107.8 million or $223/SF. Rafi Properties acquired the Ames Business Park in Somerville, which included five properties and a small parcel of land, for $88 million or $344/SF. SIP Trust sold a five-property portfolio on Stergis Way in Dedham to the Nordblom Company for $12.6 million or $133/SF. • Flex/R&D properties accounted for more than 60% of the total industrial sales volume in the second quarter.The transactions were evenly dispersed throughout the region, with the sale of the Xchange at Bedford and the Ames Business Park accounting for a large share of this activity. Pricing remains frothy for Flex/R&D properties in Greater Boston, with the median cap rates declining to 6.9% in the first half of 2018. Comparatively, median cap rates for this asset class were close to 10% nearly a decade ago.
$700
$600
$600
$500
$500
$400
$400
$ (Mls)
$300
$ (Mls)
$300
$200
$200
$100
$100
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Median Price/SF Median Price/SF MEDIAN PRICE/SF
$105
$105
$95
$95
$95
$95
$85
$81
$75
$85
$81
$65
$75
$55
$65
$45
$55
$35
$45
$25
$35
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$25
TOP Q2 / INVESTMENT SALES
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
INDUSTRIAL SALES
Q1 2017
Q2 2017
Q3 2017
Q4 2017
TOTAL
SALES VOLUME ($) Former Reebok HQ Canton The Xchange at Bedford Bedf rd
$374,173,554 560 West Street Mansfield
$453,379,723 Ames Business Park Somerville
00 Upland Drive Norwood
$385,172,081
$433,947,886
$1,646,673,244
# OF TRANSACTIONS
76
78
82
60
296
Spear Street Capital Jumbo Capital Management LLC 107,750, 0 $88,000,000
4,045,511 Alexandria Real Estate Equities
TOTAL SF
4,779,432
6,394,205
4,243,774
19,462,922
Buyer
Buyer
Buyer
The Seyon Group
Buyer
Rafi Properties
MEDIAN $/SF
$75
$59
$103
$86
$90
Price
Price
$87,250,000
Price
$38,500,000
Price
$88,000,000
Total SF
680,000 4 2 662
Total SF
200,430
Total SF
350,469
Total SF
255,795
Price/SF
$129
Price/SF
$435
Price/SF
$110
2 3
Price/SF
$344
Cap Rate
- 6.50%
Cap Rate
7.30%
Cap Rate
-
Cap Rate
-
7
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