Research & Forecast Report

GREATER BOSTON MARKET VIEWPOINT

Q4 2015 Boston Overview Large Requirements

The downtown Boston office market was running on all cylinders in TENANT SF INDUSTRY 2015, posting over two million square feet of positive absorption Putnam Investments 250,000 Financial Services and an unprecedented seven million square feet for the five- Eze Castle 125,000 Technology year period 2011 to 2015. The Financial District was by far the Advent International 100,000 Financial Services largest contributor to the positive results in 2015. Occupancy in this core submarket increased by over 1.3 million square feet WeWork 90,000 Business Services with the majority (920,000 SF) recorded in the low-rise segment Rue LaLa 75,000 Retail of the Class A tower market. Nearly 400,000 square feet of Boston Globe 75,000 Media/Publishing positive absorption was recorded in the Seaport, largely due to the construction completion of 101 Seaport Square, a 420,000-square- Velocity foot office building anchored by PwC. >> Velocity (signed lease activity) was healthy over the course of 2015, with approximately 4.6 million square feet of leases signed. Statistics in the core submarkets are as follows: >> The largest transaction in 2015 was BNY Mellon’s Boston Market Statistics 250,000-square-foot renewal at One Boston Place. Although this represented a contraction of approximately 100,000 square 2015 MARKET SEGMENT SUPPLY (SF) VACANCY RATE* ABSORPTION feet for the financial services firm, market-wide tenants in Financial District – Class A 27,762,321 9.1% 1,192,196 growth mode far outnumbered those reducing their space requirements. Financial District – Class B 6,054,905 7.2% 132,261 Total 33,817,226 8.8% 1,324,457 >> One of the more notable 2015 expansions was LogMeIn’s first quarter lease for 118,000 square feet of expansion space at 333 Seaport – Class A 3,487,295 2.1% 524,104 Summer Street. The workplace-connectivity firm relocated from Seaport – Class B 4,545,896 11.3% -141,614 Woburn in 2012 and by doubling the size of its office footprint Total 8,033,191 7.3% 382,490 secured its position as the largest high tech company in the Back Bay – Class A 10,863,855 9.8% -9,436 Seaport submarket. Both the expansion space and existing Back Bay – Class B 2,030,085 17.5% 32,223 headquarter building across the street are in renovated former Total 12,893,940 11.0% 22,787 brick and beam warehouse buildings typical of space desired by * Includes sublease space tech and new economy tenants. The largest 2015 transactions include: Supply and Demand >> Supply totals 63.9 million square feet of which 29.2 million Select 2015 Transactions square feet is located in Class A towers in the Financial District TENANT ADDRESS SF SUBMARKET (32 buildings, 22.1 million SF) and the Back Bay (9 buildings, 7.1 BNY Mellon One Boston Place 250,000 Financial District million SF). Children’s 401 Park Drive 250,000 Fenway/Kenmore >> Demand is being driven by the TAMI sector (Technology, Hospital Advertising, Media, and Information). Tech companies in Houghton Mifflin 125 High Street 200,000 Financial District particular, some migrating from the ultra-tight Cambridge market, Boston Medical 529 Main Street 175,000 Charlestown are increasingly drawn to the CBD while still maintaining access Center to the Red Line. Wells Fargo 125 High Street 150,000 Financial District >> Cambridge-based Akamai Technologies is in the market with a 600,000-square-foot requirement and looking at potential Boston >> The aggregate volume of lease transactions in 2015 was down options. slightly relative to prior years due a reduction in both the total number of transactions as well as the average lease size. On >> Demand is healthy heading into 2016, with over 200 tenants in the flip side, the pace of downsizing by law firms and financial the market seeking an aggregate of roughly four million square services firms seemed to subside in 2015 and given way to a feet of space. Although the median requirement is less than growing number of start-ups and tech users locating in the CBD. 10,000 square feet, some of the larger requirements include: Growth from these new economy tenants could bode well for future expansion over the next few years.

2 Greater Boston Research & Forecast Report | Q4 2015 | Boston | Colliers International >> There was a noted recovery over the past two years in the Rental Rates Financial District, with the submarket recording more than its >> Growth in the overall market is fueling rising rents, driven by proportionate share of transaction velocity and the other core tenant migration from outside the city and an improved job submarkets – the Seaport and Back Bay – contributing a lesser market. share. >> Investment sale activity has also served to push rents as Lease Velocity by Submarket investors paying top dollar for assets seek immediate returns. 6 >> With the growing demand for innovation space, some of the Class B brick and beam space is priced higher than historically more 5 expensive tower space. 4 >> The spread between asking rents in various segments of the

3 market is depicted in the following table: Millions 2 Rental Rates 1 SPACE TYPE RENTAL RANGE/SF

0 2011 2012 2013 2014 2015 Class A – High Rise $65 - $85 Financial District Seaport Back Bay Other Class A – Mid Rise $55 - $65 Class A – Low Rise $48 - $60 Class B $38 - $55 Absorption and Vacancy >> The year-end vacancy rate of 8.9% compares favorably to the Development 11.0% rate at the end of last year, as momentum remained steady and positive over the course of 2015. >> Over 900,000 square feet of positive absorption in the low- rise segment of the Financial District continues a trend noted in 2014, where tenants seeking value options and accessibility are attracted to the submarket’s favorable pricing and central location. >> 2015 was less a year of “blockbuster” transactions than many mid-sized tenants leasing a single floor and driven by organic growth, the desire to migrate to the central core, and a search for Hub on Causeway value. >> Three buildings totaling approximately 850,000 square feet >> Positive absorption over the next few years should drive the delivered during 2015 – the 187,000-square-foot Converse vacancy rate down into lower single-digits, as depicted in the headquarter building near North Station, Samuels & Associate’s following graph: spec office development at 1325 Boylston Street in the Fenway submarket, and Skanska’s 101 Seaport Square anchored by PwC. Forecast >> The pipeline is active with 2.3 million square feet under Vacancy and Absorption construction at year-end to deliver between early 2016 and late 2018. These include projects across the city from the Seaport 2,500 20% Forecast to North Station and in between and both pre-leased as well as 2,000 15% speculative development. Additional projects representing more 1,500 8.9% 6.0% 10% than three times that amount of new inventory is either proposed 1,000 or permitted to move forward. 500 5% 2008 2009 2010 0 0%

housands) 2006 2007 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-500 Looking Ahead… (T SF SF -1,000 >> Continued upward pressure on rents is anticipated over the next -1,500 24 months. -2,000 >> While the traditional drivers including legal and financial services -2,500 Total Boston Absorption Total Boston Vacancy Rate firms still fuel demand in the CBD, more start-ups and tech companies will be attracted to Boston’s excellent labor pool, public transit and innovation environment. >> Boston will remain a target for investment capital – both foreign and domestic.

3 Pharmaceuticals put into doubt the company’s need for the full Cambridge Overview 386,000-square-foot build-to-suit lab building being developed by Alexandria Real Estate Equities. That question was answered in August when Ariad subleased 165,000 square feet – now The 22.2-million-square-foot Cambridge office and lab market being built out as office space – to Watson Health, a unit of IBM, shattered last year’s record-breaking performance, with 1.9 million with an expected mid-2016 occupancy. square feet of positive absorption, a sharp decline in the vacancy rate, and skyrocketing rents. The year-end vacancy rate of 4.6% Transaction velocity was robust, with sizable lease transactions compares to 8.8% at the end of 2014 and is the lowest in 15 executed by the following tenants in 2015: years. In both the office and lab markets, tenants of all sizes found Select 2015 Transactions options extremely limited, particularly in the Kendall Square/East QUARTER Cambridge submarket. TENANT ADDRESS SF SIGNED Key statistics at the end of 2015 include: Sanofi 50 Binney Street Q1 251,000 HubSpot 25 First Street Q4 185,500 Cambridge Market Statistics IBM 75 Binney Street Q3 165,000 MIT 600 Technology Square Q2 109,000 MARKET SEGMENT SUPPLY (SF) VACANCY RATE 2015 ABSORPTION Takeda Vaccines 350 Massachusetts Avenue Q2 69,100 Total Cambridge* 22,176 4.6% 1,858 HubSpot 2 Canal Park Q1 60,000 Office 11,550 6.2% 493 Alnylam Pharmaceuticals 101 Main Street Q2 58,350 Lab 9,723 3.0% 1,276 MIT 1 Main Street Q1 46,000 *Includes R&D space Alnylam Pharmaceuticals 101 Main Street Q1 23,350 MIT 700 Technology Square Q2 14,250 Office Market >> Conditions in the core Kendall office market have been tight for >> The vacancy rate in the 11.6-million-square-foot office market the past couple years. The largest block of available space in this has been in the high single digits for the past three years, and micro-market is 96,000 square feet on three full floors at BioMed tightened to 6.3% over the course of 2015. Realty Trust’s 50 Hampshire Street. Absent this availability, the >> Technology and life science companies dominated the East vacancy rate in the core Kendall office market is 1.6%. Cambridge market, combining for approximately three-quarters of >> Tenants will find more options in the Alewife submarket, where office lease transaction volume. the vacancy rate is 13.0% and asking rents, while climbing, are >> The largest lease signed – Sanofi’s 251,000-square-foot build- significantly less expensive than in the core Kendall Square area. to-suit at 50 Binney Street, Alexandria Center at Kendall Square Historical Vacancy and Absorption – is not reflected in the 2015 absorption statistics as the building Cambridge Office will deliver in 2017. Following the 2011 Sanofi acquisition of Genzyme, the lease represents a consolidation of its Kendall 800 25% 20% Square workforce, currently located in three separate buildings, 600 to a premier location in the world’s foremost life sciences hub. 15% 400 13.0% >> HubSpot significantly expanded its footprint in East Cambridge 10% 200 5% in the first quarter 2015 by leasing 59,772 square feet at 2 5.2% 2008 2009 2012 0 0% Canal Park. Hubspot then closed the year by extending its 2006 2007 2010 2011 2013 2014 2015

118,600-square-foot lease at 25 First Street and will expand into (Thousands) SF -200 an additional 66,900 square feet in the building over the next two years. -400 -600 >> Market observers have been questioning the fate of 75/125 Absorption East Cambridge Alewife Station/Route 2 Binney Street since late 2013, when product setbacks by ARIAD

4 Greater Boston Research & Forecast Report | Q4 2015 | Boston | Colliers International Asking rents in East Cambridge have reached historic highs and Transaction velocity was incredibly strong, Over 2 million square are driving rents city-wide. A comparison of current asking rents feet of leases were executed in 2015 including: compared to 12 and 24 months ago follows: Select 2015 Transactions

Direct Asking Rents PSF QUARTER TENANT ADDRESS SF SIGNED SPACE TYPE - LOCATION Q4 2013 Q4 2014 Q4 2015 Alnylam 675 West Kendall Street Q1 295,000 Class A – East Cambridge $48- $70 $55 - $85 $60 - $80 bluebird bio 60 Binney Street (BTS) Q3 253,000 Class B – East Cambridge $42- $50 $45 - $55 $45 - $65 Bristol Myers Squibb 100 Binney Street (BTS) Q2 208,000 Class A – Alewife $33 - $40 $33 - $45 $42- $48 Pfizer 610 Main Street North Q3 131,500 (BTS) >> Headed into 2016, tenant demand is healthy, with several large Brigham and Women’s 65 Landsdowne Street Q3 122,400 users weighing various urban alternatives including Boston, Hospital Cambridge and the Inner Suburbs. Approximately 20 tenants are Seres Health 200 Sidney Street Q3 83,000 eyeing the Cambridge market with requirements ranging in size Biogen 301 Binney Street Q1 80,000 from 4,000 square feet to Akamai’s 600,000 square feet. Millenium Pharmaceuticals/ 75 Sidney Street Q4 79,000 Takeda Oncology Lab Market (BTS) = build-to-suit >> The vacancy rate in the 9.7-million-square foot lab market >> Lab demand was strong throughout the year with expansion by plummeted to 3.0% at the end of 2015, down from a peak of several existing Cambridge tenants as well as new entrants to the 18.7% just two years ago. market such as Bristol Meyers Squibb, Abbvie, and Eli Lilly. Historical Vacancy and Absorption >> Alnylam’s 295,000-square-foot lease for 675 West Kendall Street Cambridge Lab was the largest transaction of the year. The 15-year lease will allow Alnylam to more than double its existing footprint when 1,300 20% 18.7% it takes occupancy in the first quarter 2019. As part of the 675

15% West Kendall Street lease, Alnylam has a right of first offer on 800 500 Kendall Street (Genzyme Center) which Sanofi will vacate in 10% the fourth quarter 2017 when it moves to 50 Binney Street.

300 3.0% 5% >> Bluebird bio, a clinical stage gene therapy company, signed a

2008 2011 2013 full-building lease for a 253,000-square foot build-to-suit at

SF (Thousands) SF 2006 2007 2009 2010 2012 2014 2015 0% Alexandria Real Estate Equities’ 60 Binney Street. The company -200 will relocate from its current headquarters at 150 Second Street in late 2016. -700 Absorption Vacancy >> Regardless of size, tenants are hard pressed to find suitable existing space and with the significant barriers to entry and >> Over 800,000 square feet of new lab inventory delivered in 2015, lengthy development timelines for new construction, it will including two build-to-suit buildings for Novartis totaling 550,000 continue to be a challenge to accommodate the explosive square feet at 181 Massachusetts Avenue and 22 Windsor Street, demand. and ARIAD Pharmaceutical’s 221,000-square-foot building at 125 >> Following the frenzied pace of 2015, demand far exceeds Binney Street. available supply, and headed into 2016, there are roughly 20 >> Neighboring the massive new Novartis campus on Massachusetts tenants in the market seeking over 1 million square feet of lab Avenue, construction is underway at 610 Main Street, where space. anchor tenant Pfizer plans a mid-2016 occupancy. The multinational pharmaceutical company is building out four floors Large Requirements

at the building as speculative lab space and at year-end had TENANT SF two floors committed to a subtenant with robust activity on the remaining two available floors. Momenta Pharmaceuticals 200,000 Merrimack Pharmaceuticals 200,000 >> The next addition to inventory will be Takeda Millenmium Pharmaceuticals lab building at 300 Massachusetts Avenue, Mass Innovation Labs 125,000 developed by Forest City Enterprises and targeting a March 1 BIND Biosciences 80,000 move-in date. Genocea Biosciences 75,000

5 Looking Ahead... “ >> Both office and lab landlords will continue to push rents as demand outpaces supply and there is no sign of a slowdown, particularly in the core Kendall Square market.This one corner >> Expect more forward lease commitments from lab tenants, as the lack of immediately available space is forcing these users to pursue

potential future availabilities. may generate 1 >> Beyond the current developmentper pipeline, cent available to 2sites per in East Cambridge are dwindling, with projects such as MIT’s Kendall Square Initiative and the U. S. Department of Transportation’s Volpe Center at least three years out in terms of delivery. DivcoWest/HYM’s

Northpoint development has thecent potential of to theoffer somefuture relief to lab users unable to find space in Kendall Square. MAIN STREET global economy

VASSAR STREET Juan Enriquez, Managing director, Excel Venture Management “ “ Economic Impact Vassar and Main This one corner

may generate 1 MIT's alumni per cent to 2 per cent of the future already generate MIT alumni who MAIN STREET global economy companies with 18 launched companies VASSAR STREET Juan Enriquez, Managing director, sales equivalent to 100 in the past decade Excel Venture Management ““ amount of those % companies that >2 8 are locatedMIT's near MIT alumni trillion dollars already generate This one corner MIT alumni who 18 companies with may generate 1 launched companies the same as India, startups launchedsales equivalent to 100 6,900 in the past decade which has the by MIT alumni in MA per cent to 2 per amount of those cent of the% futurecompanies that th combined rate of 8 are located near MIT MAIN STREET>2 % all state sales whichtrillion dollars largest global economy 9global 26 they represent Juan Enriquez, Managing director, economy VASSAR STREET the same as India, startups launched Excel Venture Management which has the 6,900 by MIT alumni in MA

Source: MIT News Office, December 9, 2015 “Source: Wired Magazine, November 2, 2015 th combined rate of % all state sales which largest 9global 26 they represent economy MIT's alumni already generate MIT alumni who companies with 18 launched companies 6 Greater Boston Research & Forecast Report | Q4 2015 | Boston | Colliers International sales equivalent to 100 in the past decade

amount of those % companies that >2 8 are located near MIT trillion dollars the same as India, startups launched which has the 6,900 by MIT alumni in MA

th combined rate of % all state sales which largest 9global 26 they represent economy SPOTLIGHT ON HEALTHCARE

The healthcare industry is a perennial driver of the Boston market, and this was evidenced in full force in 2015. This year represented the 21st consecutive year that Boston-based organizations received the most research funding from the National Institutes of Health. Boston achieved this distinction in part due to its world class universities and teaching hospitals, the largest concentration of which are in the Longwood Medical Area (LMA).

Activity was robust in the LMA and surrounding neighborhoods during 2015 as institutions look to transfer office and dry research functions off of their main campuses and to move affiliates closer to the medical core. At 401 Park Drive – Landmark Center – Children’s Hospital expanded by over 250,000 square feet over the past two years at the same time Harvard School of Public Health extended its 110,000-square-foot lease. Samuels & Associates Signed the first tenant at its recently-completed speculative construction project at 1325 Boylston Street with a 45,000-square-foot lease to CRICO. The healthcare insurer relocated from Cambridge in order to be closer to its clients. Additionally, United Healthcare is rumored to have signed a 125,000-square-foot lease at the building.

Leasing at the recently-completed Longwood Center has been steady with over 60% of the building committed, leaving just three floors available for lease. The building owner will consider lab, clinical or office uses. Other activity includes: Brigham & Womens’ building a world-class facility on a site that was formerly owned by Emanuel College and Beth Israel Deaconess Medical Center and Mass College of Pharmacy and Health Sciences in the market with a number of requirements.

Outside the LMA, Boston Medical Center leased 175,000 square feet at the Schrafft Center in Charlestown and Steward Healthcare renewed its lease at Brighton Marine Health. At Assembly Square, Somerville, construction is underway at Partners HealthCare’s 800,000-square foot office building. This landmark transaction will consolidate much of the healthcare giant’s office functions in 2017 into a new, efficient Partners HealthCare building just minutes from Boston via its own stop on the Orange Line. In addition to its proximity to Boston, the project includes housing, dining, shopping and entertainment. Developer Federal Realty Investment Trust also broke ground on adjacent buildings which will include a hotel, more retail and restaurant and residential units.

7 Some of the more sizeable tenants in the market with potential Suburban Overview requirements over the next 12 to 24 months include: Large Requirements Buoyed by a strong labor market and broad expansion across industry sectors, the suburban Boston office and R&D market TENANT SF INDUSTRY TARGET MARKET posted its highest level of positive absorption in six years and a Kronos 400,000 Technology 128 Mass Pike/ decline in the vacancy rate from 18.4% to 16.5%. The Route 128 128 Northwest submarkets combined for over 2 million of the nearly 3 million Fresenius SE 300,000 Healthcare 495 North square feet of positive net absorption, and as a result recognized Tesaro 180,000 Life Sciences 128 Mass Pike/ greater appreciation in rental rates, particularly for Class A 128 Northwest properties. Brigham & Women’s 50,000 Heathcare 128 South/ 128 Mass Pike Aggregate statistics are provided below: Velocity Suburban Market Statistics >> Businesses are banking on the positive economic climate (i.e., SUPPLY SF 2015 ABSORPTION SF MARKET / SUBMARKETS VACANCY RATE low unemployment rate, increasing corporate profits, etc.) that (000S) (000S) greater Boston is currently experiencing. Velocity or signed lease Suburban Boston 134,324 16.5% 2,981 activity is on the rise in the suburbs, with tenants most active Inner Suburbs 5,711 7.8% 496 along the Route 128 belt during 2015. Route 128 77,278 14.1% 2,023 >> Clark Shoes is planning a phased occupancy in the fall of 2016 Route 495 49,278 21.3% 397 to a new building at 1265 Main Street, Waltham, the long-awaited Worcester 2,057 16.2% 64 redevelopment of one of the suburb’s prime mixed-use locations.

Supply and Demand Some of the larger transactions executed during 2015 included: >> The suburban office and R&D market totals 134 million square feet, with performance and product varying from one submarket Select 2015 Transactions to the next. Class A properties comprise 32% of the market, with a majority (close to 70%) of this high-end office space located TENANT ADDRESS SF along Route 128. Shire PLC (e) 95 Hayden Avenue, Lexington 200,000 >> Nearly 1 million square feet of new construction was added to EMD Serono (r) 1 Technology Place, Rockland 200,000 suburban inventory during 2015, including build-to-suits for Vista SharkNinja 77 A Street, Needham 150,000 Print (302,000 SF – 275 Wyman St, Waltham) and Trip Advisor General Dynamics 100-180 Rustcraft Road, Dedham 131,000 (290,000 SF – 400 First Avenue, Needham). Harvard Business Review 20 Guest Street, Brighton 128,000 >> “Placemaking” was the theme as the transformation of a number Clark Shoes 1265 Main Street, Waltham 120,000 of urban and suburban locations is underway. Brighton’s Boston (r) = renewal (e) = expansion Landing, CityPoint in Waltham, The District in Burlington, and Marlborough Hills all provide examples of transforming existing Absorption and Vacancy office buildings into more flexible, amenity-rich and collaborative environments. Historical Vacancy and Absorption >> Several medical, computer software, and telecom companies Office and R&D are actively looking for space in the suburban markets. Firms 6,000 with larger requirements are scouting along the 495 belt, while 25% 5,000 smaller tech firms continue to focus on Newton, Waltham, and all 16.5% 20% 4,000 of the Route 128 office markets 10 miles north and south of the 15% Mass Pike. 3,000 10% 2,000 >> The suburbs benefit from a diverse tenant mix, with technology, 1,000 5% consumer products and healthcare companies the most dominant 2009 0%

SF (Thousands) SF 0 drivers. 2006 2007 2008 2010 2011 2012 2013 2014 2015 -1,000 -2,000 -3,000 Absorption Vacancy

8 Greater Boston Research & Forecast Report | Q4 2015 | Boston | Colliers International >> With six consecutive years of positive absorption in the books, Looking Ahead... suburban vacancies dipped just below the 16.8% recorded in >> Landlords can expect modest near-term rent growth in both 2007 and are at their lowest level since 2001. Class A and B assets. >> Over the course of the year, demand was robust in Lexington, >> Building owners that provide modernized properties with Needham and Waltham. However, tenants branched out beyond improved amenities, lobbies and/or facades will be the most these core office nodes — particularly into markets in Route 128 competitive during the year. North and South. >> The impact of mergers and acquisitions on net occupancy will >> The Inner Suburbs posts the lowest vacancy rate in the suburban give landlords pause. For example Dell’s acquisition of EMC, market, at 7.8%. The core Route 128 markets follow with Shire’s purchase of Baxalta, and Framingham-based IDG’s recent vacancy rates in Route 128 South and 128 Mass Pike of 12.0% announcement that it is exploring “strategic options” related to a and 12.5%, respectively. potential sale all have potential real estate consequences, either >> The vacancy rate in the Route 495 West submarket broke the positive or negative. 20% mark during 2015, which leaves Route 495 North as the >> There is unlikely to be much in the way of speculative lone market above 20%. While it may seem slow in coming, the construction in 2016, given the still-extensive list of availabilities overall outlook for the Route 495 belt is decidedly positive, as over 100,000 square feet or more, as well as the fact of rapidly the area remains attractive to price-sensitive firms, back-office rising construction costs. Nonetheless, be on the lookout for companies, and larger/expanding tenants that are unable to find projects such as Anchorline’s 200 Smith Street in Waltham space in the core Route 128 belt and Inner Suburbs (former postal facility), and Saracen Associates’ Maynard Mills >> Availabilities in older, less amenitized properties are elevated. In redevelopment. fact, vacancies in properties built prior to 1990 are 22% higher on average than in those built within the past 25 years. This is where landlords with updated, modern, amenity-rich assets will set themselves apart from the competition.

Office Rental Rates

Suburban rents vary widely, ranging from the lo-to-mid teens to high $40s per square foot, depending on location, class and amenities. Some high-water marks for Class A product were achieved in 2015 as represented below: Office Rents

9 Capital Markets

Sale Comparables

Boston Boston Class A Sales Class B Sales

500 BOYLSTON STREET 50 POST OFFICE SQUARE 222 BERKELEY STREET Buyer CalSTRS Buyer Oxford Properties Price $285 million Group $/SF $364.31 Price $1.3 billion $/SF $1,007.52

1 CHANNEL CENTER THOMSON PLACE Buyer Tishman Speyer Buyer Invesco Price $316.5 million Price $183.5 million $/SF $630.92 $/SF $454

SEAPORT SQUARE (LAND) 711 ATLANTIC AVE Buyer WS Development Buyer J.P. Morgan Price $359 million Price $43.075 million $/SF $128/FAR $/SF $432.91

10 Greater Boston Research & Forecast Report | Q4 2015 | Boston | Colliers International Suburban Market Industrial Market

53 SOUTH AVENUE 112 BARNUM ROAD BURLINGTON DEVENS Buyer Cole Office and Buyer Artemis Industrial REIT Price $36.1 million Price $119.8 million $/SF $92.06 $/SF $427

PROSPECT HILL OFFICE PARK 675 CANTON STREET WALTHAM WESTWOOD Buyer Achor Line Partners Buyer Colony Realty Price $101 million Partners $/SF $212 Price $27.5 million $/SF $79.70

150 ROYALL STREET COLONY PORTFOLIO CANTON Buyer Jumbo Capital Buyer Albany Road Management, LLC Price $27.4 million Price $58 million $/SF $68.07 $/SF $220.70

11 Market Snapshot Q4 2015 Statistics | Office and R&D / Class A and Class B

MARKET SQUARE FEET (SF) SUPPLY DIRECT SF AVAILABLE SUBLEASE SF AVAILABLE VACANCY* 2015 ANNUAL ABSORPTION

BOSTON Back Bay 12,893,940 1,145,969 276,940 11.0% 22,787 Financial District 33,817,226 2,808,664 155,460 8.8% 1,324,457 Charlestown 2,843,898 164,194 0 5.8% 175,229 Crosstown 1,025,000 53,300 0 5.2% (9,150) Fenway/Kenmore 2,064,826 298,570 0 14.5% 40,471 North Station 2,065,004 84,141 4,984 4.3% 183,045 Seaport 8,033,191 458,219 131,520 7.3% 382,490 South Station 1,184,017 79,404 8,674 7.4% (6,870) Boston Total 63,927,102 5,092,461 577,578 8.9% 2,112,459 CAMBRIDGE Alewife Station/Route 2 2,758,409 247,476 38,254 10.4% 162,654 East Cambridge 17,357,702 479,678 179,308 3.8% 1,648,804 Harvard Square/Mass Ave 2,060,354 59,731 7,800 3.3% 46,527 Cambridge Total 22,176,465 786,885 225,362 4.6% 1,857,985 SUBURBS Inner Suburbs 5,711,062 325,803 120,351 7.8% 496,206 Route 128 North 8,427,892 1,615,080 62,992 19.9% 28,384 Route 128 Northwest 22,909,153 3,047,463 517,204 15.6% 729,734 Route 128 Mass Pike 30,696,097 3,155,581 681,640 12.5% 856,459 Route 128 South 15,244,423 1,712,942 110,324 12.0% 408,899 Route 495 North 26,060,358 5,439,405 649,287 23.4% (358,389) Route 495 West 18,821,850 3,225,662 442,922 19.5% 693,017 Route 495 South 4,395,836 633,081 107,868 16.9% 62,841 Worcester 2,057,183 285,818 46,755 16.2% 63,880 Suburbs Total 134,323,854 19,440,835 2,739,343 16.5% 2,981,031 MARKET TOTALS 220,427,421 25,320,181 3,542,283 13.1% 6,951,475

*including sublease space

FOR MORE INFORMATION Mary Sullivan Kelly To be placed on our mailing list, please visit: Director, Market Strategy & Research | Boston www.colliers.com/boston/insights/requestmarketreport +1 617 330 8059 [email protected]

Colliers International | Boston 160 Federal Street Boston, MA +1 617 330 8000 Copyright © 2015 Colliers International. The information contained herein has been obtained from sources deemed reliable. While colliers.com/boston every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional12 advisorsNorth priorAmerican to acting onResearch any of the material & Forecast contained Report in this report. | Q4 2014 | Office Market Outlook | Colliers International