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Retail Market Report Boston - MA

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Retail Market Report Boston - MA PREPARED BY Ernest Wronka President Boston Retail RETAIL MARKET REPORT Market Key Statistics 1 Leasing 2 Rent 6 Construction 8 Under Construction Properties 10 Sales 12 Sales Past 12 Months 14 Economy 16 Market Submarkets 21 Supply & Demand Trends 28 Rent & Vacancy 32 Sale Trends 36 6/1/2021 Copyrighted report licensed to Wronka, Ltd. Commercial Real Estate Advisors - 54321 Overview Boston Retail 12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 632K 150K 3.0% -3.3% The Boston Retail Market has struggled, during the decade. Supply-side pressures will remain limited over coronavirus pandemic with net absorption negative by the near, term with under construction inventory about 200,000 SF and rents falling by about 5% over the representing less than 1% of the existing stock. last year. The local economy has struggled and the hardest hit sector has been the leisure and hospitality Investors have moved cautiously during the pandemic, industry. and investment declined in 2020 to a 7-year low. Sales volume picked up in 20Q4 compared with the previous Despite the market's struggles, vacancies remain below two quarters, however, and liquidity in 21Q1 was their historical average. Tight occupancies are largely stronger than in the mid-quarters of last year. As with due to a lack of supply, with annual deliveries rents, cap rates and market pricing have weakened consistently trailing the historical average over the last during the pandemic. KEY INDICATORS Net Absorption Under Current Quarter RBA Vacancy Rate Market Rent Availability Rate Deliveries SF SF Construction Malls 23,397,273 1.4% $36.34 3.2% 43,684 0 265,153 Power Center 10,424,062 3.0% $20.72 6.1% 0 0 12,000 Neighborhood Center 50,294,717 4.9% $21.66 7.3% 203,560 0 356,850 Strip Center 11,518,648 3.9% $20.65 5.5% (19,968) 0 0 General Retail 144,740,844 2.6% $23.57 3.4% 46,094 34,070 588,822 Other 998,362 1.3% $30.81 1.9% (7,187) 0 0 Market 241,373,906 3.0% $24.18 4.4% 266,183 34,070 1,222,825 Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) 0.2% 4.0% 3.0% 5.6% 2006 Q4 2.5% 2017 Q3 Net Absorption SF 150K 1,713,707 671,702 5,299,926 2008 Q1 (422,724) 2006 Q4 Deliveries SF 632K 1,916,863 1,030,303 4,035,791 2008 Q4 605,721 2020 Q4 Rent Growth -3.3% 1.1% 0.3% 4.4% 2017 Q3 -4.8% 2021 Q1 Sales Volume $1.4B $1.1B N/A $1.7B 2017 Q2 $275.3M 2009 Q4 6/1/2021 Copyrighted report licensed to Wronka, Ltd. Commercial Real Estate Advisors - 54321 Page 2 Leasing Boston Retail The Boston Retail Market has struggled during the compared over the last year in Boston. As a result, many coronavirus pandemic, due to the area's high restaurants have gone out of business and restaurant unemployment and tight restrictions on in-person retail. leasing declined by about 15% from 2019 to 2020. Vacancies have increased since the start of last year, and negative net absorption has been recorded. Rent Grocery stores have been among the most resilient growth has also struggled, with asking rents falling by sectors of retail during the pandemic. Several of the about 5% over the last 12 months. largest leases signed across the metro since the start of 20Q2 were for grocery chains. The largest deal was BJ's Leisure and hospitality has been the hardest hit lease for 113,000 SF at a new development in employment sector. Restaurants have been adversely Rockingham that will open in 21Q4. Another notable deal affected by Massachusetts' tight restrictions on dining was Aldi's lease for 20,000 SF in Natick. Aldi will move and consumers increased preference for eating at home. into the space at the Cloverleaf Mall, which was on the OpenTable reservations are also down by about 60% market for 32 months, this summer. NET ABSORPTION, NET DELIVERIES & VACANCY 6/1/2021 Copyrighted report licensed to Wronka, Ltd. Commercial Real Estate Advisors - 54321 Page 3 Leasing Boston Retail VACANCY RATE AVAILABILITY RATE 6/1/2021 Copyrighted report licensed to Wronka, Ltd. Commercial Real Estate Advisors - 54321 Page 4 Leasing Boston Retail 12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS Net Absorption SF Building Name/Address Submarket Bldg SF Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12 Month Maynard Crossing Concord/Maynard 69,374 0 0 0 0 0 69,374 217-251 Washington St Peabody/Salem 57,370 11,474 0 0 0 0 45,896 Natick Mall Framingham/Natick 194,722 0 0 0 0 0 45,000 Apple Tree Shopping Center Rockingham 204,646 1,650 1,490 2,765 0 0 43,979 The Shoppes at Simonds Park Burlington/Woburn 43,750 0 35,734 8,016 0 0 43,750 Building One Lawrence/Andover 43,000 2,200 40,800 0 0 0 40,800 The Shoppes at Stoughton Com… Route 24 58,000 0 0 58,000 0 0 39,516 Merchants Row Route 3 Corridor 38,700 0 38,700 0 0 0 38,700 Saugus Plaza Saugus/Lynn 67,887 0 0 0 0 0 34,065 Arsenal Yards Watertown 32,000 0 32,000 0 0 0 32,000 Plymouth Plaza Route 3 South 60,004 0 30,614 0 0 0 30,614 Sharon Marketplace I-95 Corridor South 103,698 15,081 0 15,000 0 0 30,000 179 Main St Rockingham 36,500 0 0 0 0 0 30,000 103 N Beacon St Allston/Brighton 30,000 0 0 0 0 0 28,702 Volvo Cars Plymouth Route 3 South 28,254 0 0 0 0 0 28,254 151 Andover St Peabody/Salem 25,000 0 25,000 0 0 0 25,000 Avon Corporate Center Route 24 170,000 45,918 23,412 0 0 0 22,983 Subtotal Primary Competitors 1,262,905 76,323 227,750 83,781 0 0 628,633 Remaining Boston Market 240,158,226 7,195,723 (50,962) 182,402 0 0 (478,854) Total Boston Market 241,421,131 7,272,046 176,788 266,183 0 0 149,779 6/1/2021 Copyrighted report licensed to Wronka, Ltd. Commercial Real Estate Advisors - 54321 Page 5 Leasing Boston Retail TOP RETAIL LEASES PAST 12 MONTHS Building Name/Address Submarket Leased SF Qtr Tenant Name Tenant Rep Company Leasing Rep Company Seabrook Crossing West Rockingham 113,000 Q4 20 BJ's Wholesale Club - Waterstone Properties… 709 State Rd Route 3 South 35,811 Q1 21 Clement's Marketplace - - Avon Corporate Center Route 24 23,412 Q4 20 Lowes - F.X. Messina Enterprises Fellsway @ 630 Medford/Malden 22,478 Q4 20 Lowe's - Atlantic Retail 98 Accord Park Dr Route 3 Corridor 22,000 Q2 21 - - CBRE 98 Accord Park Dr Route 3 Corridor 22,000 Q4 20 - - Charles River Realty G… Fellsway Plaza Medford/Malden 20,300 Q2 21 Biolife Plasma - Charter Realty & Devel… 157 W Central St * Framingham/Natick 18,285 Q2 21 Chambers Motors - Newmark Knight Frank Walgreens Rockingham 16,658 Q2 20 Walgreens - - Stone Bldg Back Bay 15,803 Q1 21 Capital One RetailUnion Brokers UrbanMeritage, LLC Walgreens Route 24 15,220 Q2 20 Walgreens - - The Ridge Marketplace Strafford County 15,000 Q4 20 - - SRS Real Estate Partn… Sharon Marketplace I-95 Corridor South 15,000 Q3 20 Liqour World - Capital Group Propertie… 456 Chelmsford St Lowell/Chelmsford 15,000 Q1 21 - - Frontier Development Sudbury Crossing Concord/Maynard 14,630 Q1 21 Goddard School - Phillips Edison & Comp… 1070 Washington St Route 3 Corridor 13,000 Q3 20 - - Atlantic Properties 38 Merrimac St Amesbury/Ipswich 12,827 Q2 20 Tuscan Sea Grill & Bar - - Dundee Park Lawrence/Andover 12,000 Q2 21 Elev802 Boston - Ozzy Properties, Inc. 286 N Broadway Rockingham 12,000 Q3 20 Enterprise Rent-A-Car Co… - Shea Commercial Prop… Museum Place Mall Peabody/Salem 11,925 Q3 20 - - Marley Properties Brockton Plaza Route 24 11,900 Q3 20 Brockton Furniture - Brockton Plaza Realty… 406 VFW Dr Route 3 Corridor 11,000 Q1 21 Article 15 - Olde Towne Developm… Crescent Plaza Route 24 10,996 Q4 20 Jerssalem Furniture& Mat… - Atlantic Retail 393 W Center St Route 3 South 10,900 Q4 20 PBS - Landmark Real Estate 1 Lafayette Rd Rockingham 10,688 Q3 20 House of Billiards - Colliers International Village Mall Lawrence/Andover 10,430 Q4 20 - - Summit Realty Partners Sharon Marketplace I-95 Corridor South 10,000 Q4 20 Dollar Tree - Capital Group Propertie… Bellingham Marketplace I-95 Corridor South 10,000 Q3 20 Christalight Auditorium An… - HomeSmart Profession… Bellingham Marketplace I-95 Corridor South 10,000 Q2 20 Kali Rose - Colonial Properties LLC The Street - Chestnut Hill, MA Newton/Brookline 9,246 Q4 20 Limani District Real Estate… W/S Development 1583 Boston Providence Tpke Route 1 South 9,008 Q2 21 - - Khyber Investments LLC Riverwalk Lawrence/Andover 9,000 Q2 21 - - Lupoli Companies 297 Highland Ave Peabody/Salem 9,000 Q2 20 Atlantic Medical Partners - Denenberg Realty Advi… 14-32 Concord St Framingham/Natick 9,000 Q1 21 - - MetroWest Commercial… Salem Park Plaza Rockingham 8,980 Q1 21 Jos. A. Bank - Linear Retail Properties City Place Midtown 8,950 Q1 21 CVS - Boston Urban Partners Quincy Granite Place Quincy/Braintree 8,450 Q3 20 AutoPart International Wyman Street Advis… Atlantic Retail Raymond Shopping Center Rockingham 8,024 Q4 20 Pawtuckaway Trading Post - Verani Commercial 25 Lafayette Rd Rockingham 8,000 Q2 21 - - Nautilus Realty Group Durgin Square Rockingham 7,781 Q4 20 Pure Hockey - Atlantic Retail;Newmar… *Renewal 6/1/2021 Copyrighted report licensed to Wronka, Ltd.
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