Office Overview

Boston Cambridge Suburbs Q1 2013
Highlights
Quarterly Absorption Measured 563,000 SF Asking Rate Increased to $28.83/SF Vacancy & Availability Rates Down Active Development & Investment Markets Growth Spread Across Most Submarkets
Research
Introduction
The following report produced by Lincoln Property Company Boston contains statistics on the Greater Boston Office market. It comprehensively analyzes and forecasts the regional office market by providing the most recent and accurate data in combination with local knowledge to succinctly summarize quarterly performance and forecast future market conditions.
Q1 2013
Executive Summary
The Greater Boston office market achieved significant recovery during 2012 by absorbing nearly 3.5 million square feet and leveraging positive asking rate growth. Strong demand across most downtown submarkets drove growth, while suburban markets began recovering from the recession and anticipated spillover demand from the downtown markets. This years first quarter marked the transition point where activity remained strong in the Hub while the majority of suburban markets came alive. As a result, the Greater Boston market measured 563,000 square feet of quarterly net absorption, increasing its year-over-year total to 3.9 million square feet. Quarterly demand originated in Boston, however prevailing market forces, supply and demand, fueled growth throughout the suburban office market. Route 128 continued its rebound by absorbing 355,000 square feet and registering asking rate growth. W hile the Interstate 495 market posted strong quarterly statistics, achieving 371,000 square feet of net absorption and lowering its vacancy rate to 18.5 percent. Looking forward, expect continued leasing activity and steady asking rate growth across the Greater Boston office market, as demand for well positioned, amenity rich locations continues.
Lincoln Property Company 53 State Street, 7th Floor Boston, MA 02109 (617) 951-4100 www.lpcboston.com
(617) 951-4100 www.lpcboston.com
Research
Downtown: Quarter in Review
Positives
52,800 SF of Quarterly Net Absorption Asking Rate Jumped to $44.28/SF Leasing Velocity Within Class A Low-Mid Rise Active Investment Sales and Development Markets Bright Future for Office Construction
Q1 2013
Negatives
Back Bay Availability Gained 632,000 SF 70% of Class A Vacancy in Low-Mid Rise Negative Class B Quarterly Absorption Financial District Availability Rate High: 16.7%
10 Year Vacancy Rate

High: Low: Current: 12.3% 5.2% 9.0% Q2 11 Q3 07 Q1 13
Market Trends
Downtown Team
Direct Vacancy 9.0% Sublease Availability 1.4% Asking Rate $44.28/SF John D. Miller Senior Vice President jmiller@lpc.com Brian G. Smallman Vice President bsmallman@lpc.com Roberto Magno Assistant Vice President rmagno@lpc.com Brendan W. Miller Assistant Vice President bmiller@lpc.com Jeffrey C. Moore Assistant Vice President jmoore@lpc.com Brian Collins Associate bcollins@lpc.com Carolyn M. Molloy Associate cmolloy@lpc.com
Net Absorption 1,984,000 SF

Year-Over-Year
Net Absorption & Total Availability

1,200,000 SF 900,000 SF 600,000 SF 300,000 SF 0 SF -300,000 SF -600,000 SF -900,000 SF -1,200,000 SF
2009 2010 2011 2012 2013 Net Absorption Total Availability
20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%
Research
Downtown: Class A
Boston Starts Strong, Availability Masks Growth
During the first quarter the vacancy rate for the Class A market fell to 9.0 percent, its lowest level since the 2009 recession. The market absorbed 94,000 square feet and the average asking rate increased to $49.97 per square, however with nearly 200,000 square feet of vacancy becoming available in the Back Bay, total Class A availability rose to 15.2 percent. Boston continued to benefit from live & work demand, with suburban tenants relocating-in to more vibrant, 24/7 lifestyle locations. LogMeIns move from Woburn to a fully renovated 320 Summer Street in the Seaport, was quickly followed by Battery Ventures announcement to move into 28,000 square feet at One Marina Park Drive from its current Waltham location. As a result, the Class A Seaport asking rate has increased annually by over 8.8 percent to $51.50 per square foot, forcing existing tenants to consider alternative locations with current market rates often 30.0 percent higher than in-place rents. The Financial District continued its strong annual performance, measuring 326,000 square feet of quarterly absorption. Leasing velocity in the low-mid rise portions of towers, where roughly 70 percent of total Class A vacancy sits, picked up momentum. Three leases, Grant Thornton LLP , Adler Cohen LLP and Cambridge Trust totaling 70,000 square feet were signed at 75 State Street which helped to alleviate pressure on the low-mid rise market. Additionally, Arnold Worldwides recent 125,000 square foot commitment to the Burnham Building solidified the Downtown Crossing area and paves the way for its welcomed transformation.
Q1 2013
Submarket Thermometer
Six Month Change in Asking Rate & Vacancy
Hot
Rents Climbing/Vacancy Falling
Seaport
Warm
Rents Holding/Vacancy Decreases
South Station North Station Financial District
Fenway Midtown Back Bay
Landlord Market
Equilibrium
Cold
Rents Decline/Vacancy Inches Up
Frozen
Slumping Rents/Vacancy Increases
Data Points
Year-Over-Year
Direct Vacancy 9.0%
Sublease Availability 1.6%
Total Availability 15.2%
Asking Rate $49.97/SF
Recent Significant Leases
Net Absorption and Direct Vacancy

800,000 SF 600,000 SF 400,000 SF 200,000 SF 0 SF -200,000 SF -400,000 SF -600,000 SF -800,000 SF
2010 2011 2012 2013 2014
14.0%
Net Absorption Direct Vacancy
Arnold Worldwide The Burnham Building - 125,000 RSF Financial District - Relocation Berkshire Partners The Hancock Tower - 88,500 RSF Back Bay - Renewal & Expansion CRA International The Hancock Tower - 63,000 RSF Back Bay - Renewal & Contraction Grant Thornton LLP 75 State Street - 41,400 RSF Financial District - Relocation
12.5% 11.0% 9.5% 8.0% 6.5% 5.0% 3.5% 2.0%
Te n a n t M a r k e t
Charlestown
Research
Downtown: Class A
Financial District
Average Asking Rate Sublease Availability (RSF)
Q1 2013
Back Bay
Average Asking Rate
$70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00
750,000 RSF 625,000 RSF 500,000 RSF 375,000 RSF 250,000 RSF 125,000 RSF 0 RSF
Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012
Sublease Availability (RSF)
$70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00

Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012
750,000 RSF
625,000 RSF
500,000 RSF
375,000 RSF
250,000 RSF
125,000 RSF 0 RSF
West End North End North Station Beacon Hill

8 2 7 4
The overall average asking rate for Class A space measured $49.97 per square foot at the conclusion of the first quarter. Year-over-year the average asking rate has increased nearly 4.7 percent with the largest gain measured in the Back Bay where the average asking rate jumped by 14.6 percent to $54.77 per square foot. Trailing only the Back Bay, the Financial Districts Class A asking rate rose to $51.64 per square foot, while the Seaport settled at $51.50 per square foot. With premium, high rise spaces commanding in the $70s and up to $80.00 per square foot range, expect continued leasing velocity in the low-mid rise portions of Class A towers where space is more freely available and leverage remains relatively neutral between landlord and tenant.
Back Bay
5
Financial District
10
Midtown Chinatown
6 3 9
Seaport District
Largest Contiguous Blocks of Space

#
1 2 3 4 5 6 7 8 9 10
Source: CoStar
Contiguous Blocks by # of Options

3
Building Address
500 Washington Street 50 Milk Street 745 Atlantic Avenue 75 State Street 500 Boylston Street 100 Summer Street 60 State Street One Beacon Street One Marina Park One International Place
Submarket
Midtown Financial District South Station Financial District Back Bay Financial District Financial District Financial District Seaport Financial District
Building Size
607,800 369,800 170,300 813,300 760,000 1,034,600 823,000 1,017,200 504,000 1,025,000
Contiguous RSF Available

322,600 274,000 158,700 144,900 141,700/138,300 136,000 123,000 121,400 116,800 112,800
Type
Direct Direct Direct Direct Direct Direct Direct Direct Direct Direct
13 38
12
88
104
25K - 49K 10K - 24K 5K - 9K
100K+ 75K - 99K 50K - 74K
Research
Downtown: Class B
Steady Quarterly Performance
After absorbing 1.21 million square feet during 2012, the total Class B market succumbed to Charlestowns negative quarterly performance which caused the market to give back 41,300 square feet. However, the Seaport and Financial District collectively absorbed over 100,000 square feet, but these strong performances where masked by Charlestowns struggles. Overall, the Class B market has measured 959,000 square feet of annual net absorption and 10.6 percent asking rate growth. With demand anticipated to persist and total availability increasing at a diminishing rate, expect healthy quarterly absorption figures and steady asking rate growth across the Class B market over the next several quarters. In the Seaport, tenants continued to flood the market: TIBCO , Life is Good and the Unitarian Universalists Association to name a few. Some existing Class B tenants are finding themselves priced out of the new market and are seeking more economical options in South Station and the Financial District. In addition to the high number of relocations, a number of recent investment sale transactions in the Seaport have landlords pushing rents there. Overall, Boston is undergoing an urban renaissance and expansion where companies are relocating to its dynamic locations. Looking forward, expect positive growth as the market continues to absorb upcoming availability and landlords leverage positive absorption into asking rate growth.
Q1 2013
Hot
Seaport
Warm
North Station Midtown South Station Fenway Charlestown Back Bay Financial District
Landlord Market
Equilibrium
Cold
Frozen
Data Points
Net Absorption 958,700 SF
Year-Over-Year
Direct Vacancy 9.0%

2009 2010 2011 2012 2013 2014 Net Absorption - Projection Net Absorption Direct Vacancy
20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%
Bullhorn 33-41 Farnsworth Street - 43,400 RSF Seaport - Renewal & Expansion TIBCO 281 Summer Street - 40,000 RSF Seaport - Relocation Unitarian Universalists Assoc. 24 Farnsworth Street - 39,000 RSF Seaport - Relocation NetSuite 51 Melcher Street - 32,500 RSF Seaport - Relocation
Research
Downtown: Class B
Financial District
Q1 2013
Back Bay
$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00
$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00
Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
Seaport
$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00
Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012
Asking rates climbed significantly during the first quarter, reaching $32.92 per square foot, over three dollars higher than one year ago. The most active submarket was the Seaport which saw asking rates skyrocket 18.9 percent annually, reaching $36.14 per square foot by quarters end. The Back Bay remained the second most expensive submarket with rents averaging $35.64 per square foot. Still trailing both the Seaport and Back Bay, the Financial District leveraged 3.9 percent quarterly asking rate growth which measured $31.17 per square foot. Looking forward, expect asking rates to steadily increase over the next several quarters as the Class B market attracts new requirements and existing Class A tenants consider nearby economical alternatives.

Building Address
501 Boylston Street 500 Rutherford Avenue 31 St. James Avenue 185 Dartmouth Street 2-6 Charlesgate West 1000 Washington Street 99 Bedford Street Towerpoint @ A Street One Congress Street 300 A Street
Source: CoStar

Type
19
25K - 49K 10K - 24K 5K - 9K 100K+ 75K - 99K 50K - 74K
Submarket
Back Bay Charlestown Back Bay Back Bay Fenway South Station Financial District Seaport District North Station Seaport
Building Size
607,700 300,000 445,700 163,000 56,000 242,300 83,900 153,500 287,000 106,200

181,100 139,700 136,500 111,200 56,000 54,100 45,800 44,500 41,000 39,500
3 4
53
113
Research
Downtown
Investment Sales
Although the first quarter failed to see any towers change hands and the development market earned more headlines, there was widespread investment activity across the Class B market. A flurry of Financial District assets traded this winter including, Aegons Two Liberty Square, which was purchased by URDANG Capital for $17,560,000 or approximately $267 per square foot. Meanwhile, Synergy continued growing its local portfolio by acquiring the 222,700 square foot Class B office building at Two Oliver Street from AEW Capital Management for $52,000,000 or $233 per square foot. Synergy also submitted the winning bid for 11 Beacon Street, an 150,000 square foot office building, paying $34,900,000 or $232 per square foot to DivcoWest for the Class B asset. Looking ahead, following these sales, 40 Broad Street and 45 Milk Street have hit the market but are yet to close by quarters end. Aggressive pricing that is reminiscent of peak economic times is anticipated for these properties. Additionally, the recent sale of Riverside Center in Newton by The Blackstone Group suggests that the firm may looking to divest some of its downtown holdings in the coming quarters.
Q1 2013
11 Beacon Street
Two Oliver Street
Development
Office construction is booming for build-to-suits in Boston with Liberty Mutual, Vertex and State Street continuing their development efforts. Millennium and Vornado intend to develop 218,000 square feet of class A office space at One Franklin Street, having just secured anchor tenant Arnold Worlwide for 125,000 square feet. Rumors suggest a possible early spring construction commencement date, however that remains uncertain. The newly formed, Related Beal started construction for Converse at Lovejoy Wharf in the first quarter. The shoe company will relocate its headquarters from North Andover to the mixed-use harbor front redevelopment, featuring a mix of office, retail and residential spaces as well as improvements along the wharf. Capitalizing on its recent success, the Seaport remained extremely active. The Fallon Company secured Goodwin Procters 360,000 square foot requirement in a build-to-suit Fan Pier office tower. The 24/7 lifestyle revitalization efforts continued along Boylston Street with Samuels & Associates breaking ground on The Fenway Triangle, a mixed-use complex that includes 230,000 square feet of speculative office space. Between this project and the success of Skanskas speculative lab space in Cambridge, speculative development is starting to show some signs of life. Looking forward, as tenants favor Boston and rents begin to support new supply, Boston will likely see more cranes in 2013. Two Liberty Square
Building Address
306 Dartmouth St. Two Liberty Square Two Oliver Street 11 Beacon Street
Submarket Class
Back Bay Financial District Financial District Financial District B B B B
Building Size (RSF)

25,000 65,700 222,700 150,500
Seller Buyer
Raymond Property Company First Boston General Realty AEGON USA Realty URDANG Capital AEW Capital Management Synergy DivcoWest Synergy
Price/SF
$580 $267 $233 $232
306 Dartmouth Street
Research
Cambridge Office: Quarter in Review
Positives
Total Availability Down to 11.8% Active Build-to-Suit Construction Market Mid Cambridge Vacancy Under 75,000 SF Market Remained Historically Healthy
Q1 2013
Negatives
Direct Vacancy Rose to 8.9% Two Consecutive Quarters of Negative Absorption East Cambridge Bogged Down Total Market Alternative Locations for Tenants Gained Momentum
10 Year Vacancy Rate: Office & Lab

Market Trends: Office
Cambridge Team
Sublease Availability 1.2% Asking Rate $45.20/SF John D. Miller Senior Vice President jmiller@lpc.com
Net Absorption (271,200) SF

Year-Over-Year
Direct Vacancy 8.9%
Net Absorption and Total Availability

300,000 SF 225,000 SF 150,000 SF 75,000 SF 0 SF -75,000 SF
2009 2010 2011 2012 2013 Net Absorption Total Availability
Jeffrey C. Moore Assistant Vice President jmoore@lpc.com

20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%
Jesse Flynn Senior Associate jcflynn@lpc.com
-150,000 SF -225,000 SF -300,000 SF
Research
Cambridge: Office
East Cambridge Availability Overshadows Market
The total Cambridge market gave back 147,400 square feet during the first quarter, drawing its year-over-year total up to negative 271,300 square feet. Nonetheless, the total vacancy rate remained low at 8.9 percent and average asking rates increased by 3.7 percent, reaching $45.20 per square foot. Deeper examination reveals that the negative quarterly and annual market performances are misleading. The culprit is East Cambridge which shed 166,800 square feet this quarter, accounting for all of Cambridges total negative net absorption. However, the submarket did manage to cut its total availability and sublease rate by signing tenants to lease renewals and expansions as well as relocating companies into short term subleases. For instance, the Cambridge Innovation Center expanded by 52,000 square feet at 101 Main Street while EDX relocated into 30,000 square feet at 141 Portland Street. With such success, asking rates continue to rise at the premier waterfront and Kendall Square assets which now command up to $60.00 per square foot. Mid and West Cambridge carried leasing momentum into the first quarter, cutting their vacancy rates down to 2.4 and 9.9 percent respectively. As a result, the Mid Cambridge average asking rate rose to $47.81 per square foot while West Cambridge asking rates finally inched up to $33.84 per square foot. Nuances relocation into 27,500 square feet at 675 Massachusetts Avenue marked the largest transaction of the quarter within either submarket.
Q1 2013
Hot
Mid Cambridge - Class A & B
Warm
East Cambridge - Class A & B West Cambridge - Class A & B Equilibrium
Cold
Frozen
Data Points
Net Absorption (271,200) SF
Year-Over-Year
Direct Vacancy 8.9%

Cambridge Innovation Center
101 Main Street - 52,000 RSF
20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%
East Cambridge - Expansion
EDX
141 Portland Street - 30,000 RSF East Cambridge - Relocation
Nuance
675 Massachusetts Avenue - 27,500 RSF Mid Cambridge - Relocation
Good Start Genetics

19 Blackstone Square- 15,000 RSF Mid Cambridge - Renewal & Expansion
Landlord Market
10
Research
Cambridge: Office
Class A
Q1 2013
Class B
$60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00
$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
East Cambridge: Class A

$60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00
During the first quarter, the average Class A asking rate increased 3.9 percent, ending the quarter at $46.08 per square foot. Similarly, the Class B market coupled rising Class A asking rates with its paltry 2.0 percent vacancy rate to achieve a $38.64 per square foot average asking rate. Looking forward, expect Cambridge asking rate growth to decelerate slightly over the next few quarters as it adjusts to newly available space and competitive supply. It remains a concern that current tenants and future requirements will evaluate lower cost alternatives in Boston or select areas of the Route 128 market.
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012

Building Address
Two Canal Park Ten Canal Park 141 Portland Street 101 Main Street 150 Cambridgepark Drive 25 First Street 125 Cambridgepark Drive One Main Street 55 Cambridge Parkway One Canal Park
Source: CoStar

Type
3
Direct Direct Direct Direct Direct Direct Direct Sublease Direct Direct
25K - 49K 10K - 24K 5K - 9K 100K+ 75K - 99K 50K - 74K
Submarket
East East East East West East West East East East
Class
A A A A A B A A A A
Building Size
222,000 118,500 186,800 341,800 270,800 220,800 202,000 305,600 277,800 133,900

198,000 106,300 79,400 70,000 60,800 34,800 34,600 31,600 30,200 30,100
1 2
17
13
11
Research
Suburban Office: Quarter in Review
Positives
Annual Absorption Measured 2.19M SF Total Availability Down to 20.2% Average Asking Rate Increased to $20.41/SF Route 128 Vacancy Rate Dropped to 14.7% Interstate 495 Absorbed 371,000 SF
Q1 2013
Negatives
Tenants Still Relocating-In Towards the Hub Large Blocks Continued Lingering Construction Activity Remained Quiet Southern Submarkets Trail Asking Rate Recovery
10 Year Vacancy Rate

Market Trends
Suburban Team
Gregory Cahill, SIOR Senior Vice President gcahill@lpc.com

Year-Over-Year
Direct Vacancy 16.3%
Asking Rate $20.41/SF Tim Latham, CCIM Senior Vice President tlatham@lpc.com Rob Cronin Vice President rcronin@lpc.com
24% 21%
Net Absorption and Total Availability

1,600,000 SF 1,200,000 SF
Net Absorption
800,000 SF 400,000 SF 0 SF -400,000 SF

2009
Total Availability
18% 15% 12%
Ellison Patten Vice President epatten@lpc.com Ned Halloran Assistant Vice President nhalloran@lpc.com Craig MacDonald Associate cmacdonald@lpc.com
2010
2011
2012
2013
9% 6% 3% 0%
-800,000 SF -1,200,000 SF -1,600,000 SF
12
Research
Suburban Office: Route 128
Promising Start to a New Year
During the first quarter, the total Route 128 market absorbed 354,500 square feet, increasing its year-over-year tally to 1.14 million square feet. Given the recent wave of absorption across the market, the average asking rate increased to $22.47 with amenity-rich locations experiencing even more significant growth. The Class A market absorbed 399,400 square feet this quarter while the Class B market gave back 44,900 square feet. The Class A market benefitted from spillover demand from downtown tenants who sought economic alternatives to the city while being able to maintain a certain standard of property level amenities as well as surrounding area services. Furthermore, with Bostons Class B asking rates rising so quickly, many suburban tenants who considered relocating-in to the city twelve or even six months may now reconsider. The western Route 128 submarket carried positive momentum throughout the first quarter, measuring 267,200 square feet of net absorption. Synageva BioPharmas 51,500 square foot relocation to Lexington coupled with F Squareds 36,000 square foot relocation to Wellesley strengthened quarterly performance. Similarly, the Route 128 South submarket posted 95,600 square feet of quarterly net absorption, however the average asking rate remained neutral at $18.81 per square foot. Lastly, the northern submarket posted neutral quarterly performance despite Johnny Appleseeds 42,000 square foot relocation to 35 Village Road in Middleton and Net Brain Technologys move to 65 Network Drive in Burlington.
Q1 2013
Hot
128 North 128 West
Warm
128 South Inner Suburbs
Landlord Market
Equilibrium
Cold
Frozen
Data Points
Year-Over-Year

1,000,000 SF 750,000 SF 500,000 SF 250,000 SF 0 SF -250,000 SF -500,000 SF -750,000 SF -1,000,000 SF

Synageva BioPharma
20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%
33 Hayden Avenue, Lexington - 51,500 RSF 128 West - Relocation & Expansion
SAS Institute
35 Village Road, Middleton -50,000 RSF 128 North - Renewal
F Squared Investments 80 William Street, Wellesley - 36,000 RSF

128 West - Relocation
Intelligent MDX
285 Bear Hill Drive, Waltham - 26,500 RSF 128 West - Relocation
13
Research
Route 128
Route 128 West
Q1 2013
Route 128 North

Average Asking Rate
$30.00 $27.50 $25.00 $22.50 $20.00 $17.50 $15.00
1,500,000 RSF 1,250,000 RSF 1,000,000 RSF 750,000 RSF 500,000 RSF 250,000 RSF 0 RSF
$25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00

Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
Route 128 South

$24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00
During the recession, suburban asking rates compressed and the cost differential between Class A and B properties shrank. As a result, Class B leasing velocity has lagged behind Class A because tenants have been able to secure newer, higher-amenity spaces at only slight marginal cost. That being said, as the total suburban market has recovered and the average Class A asking rate now approaches $25.00 per square foot with Route 128 West nearing $30.00 per square foot and premier buildings commanding up to $40.00 per square foot, expect the Class B market to ramp up leasing velocity as the marginal cost for Class A space increases.
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012

Building Address
133 Boston Post Road 105 Rosemont Road 100 Technology Center Dr. 2 Heritage Drive 1515 Washington Street 1 Heritage Drive 100-180 Rustcraft Road 108 Myrtle Street 200 Ballardvale Street 225 Second Avenue
Source: CoStar

357,000 208,000 197,000 186,400 181,000 169,600 160,000 142,200 138,400 122,500
City (Submarket)
Weston (West) Westwood (South) Stoughton (South) Quincy (South) Braintree (South) Quincy (South) Dedham (South) Quincy (South) Wilmington (North) Waltham (West)
Class
A B A A B A B A A B
Building Size
357,000 208,000 197,000 186,400 273,300 169,600 500,000 172,000 197,000 122,500
Type
Sublease Direct Direct Direct Direct Direct Direct Direct Direct Direct
14 6 14 65 221
198
25K - 49K 10K - 24K 5K - 9K
100K+ 75K - 99K 50K - 74K
14
Research
Suburban Office: Interstate 495
Interstate 495 Begins Year on High Note
The Interstate 495 market continued its recovery during the first quarter by absorbing 371,000 square feet and achieving slight asking rate growth. Despite losing some tenants to relocating-in demand, the Interstate 495 market saw a number of occupants renew and reposition for growth. Additionally, with downtown vacancy rates decreasing and asking rates rising, firms are starting to evaluate more economical suburban locations. Quest Diagnostics, which leased 200,000 square feet at 200 Forest Road in Marlborough, was the only major downtown tenant to relocate to the suburbs during the first quarter. The Interstate 495 market received positive quarterly contributions from all four geographical submarkets, except Route 2 West, which gave back 40,000 square feet. The Mass Pike and Route 3 North submarkets lead the charge, combining to absorb 372,000 square feet. The Mass Pike submarket welcomed, Aptiv Solutions, who leased 30,000 square feet at 62 Forest Street in Marlborough. To the north along Route 3, 900 Chelmsford Street (Cross Point) in Lowell attracted Verizon which leased 240,000 vacant square feet. W hile not posting staggering quarterly statistics, both the Interstate 495 Northeast and Interstate 495 South office markets also achieved positive quarterly absorption. After Schneider Electrics relocation and expansion last quarter, Anodver continued its hot streak with Rockstar New Englands 21,500 square foot lease renewal at 3 Dundee Park Drive.
Q1 2013
Hot
Warm
495 Mass Pike Route 3 North 495 Northeast
Landlord Market
Equilibrium
Cold
Frozen
Data Points
Year-Over-Year

1,000,000 SF 800,000 SF 600,000 SF 400,000 SF 200,000 SF 0 SF -200,000 SF -400,000 SF -600,000 SF -800,000 SF -1,000,000 SF
Recent Significant Activity

Verizon
24% 21% 18% 15% 12% 9% 6% 3% 0%
900 Chelmsford St., Lowell - 240,000 RSF Route 3 North - Expansion
Quest Diagnostics
200 Forest Street, Marlborough - 200,000 RSF 495 Mass Pike- Relocation (lab & office)
Emerson Hospital
300 Baker Avenue, Concord - 80,000 RSF Route 2 West - Renewal & Expansion
Rockstar Games
3 Dundee Park, Andover - 21,500 RSF 495 Northeast- Relocation
Route 2 West 495 South
15
Research
Interstate 495
Mass Pike West
Q1 2013
Route 3 North
Average Asking Rate
$25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00
$25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012
Route 2 West
$25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00
Over the past several quarters, tenant relocations from Interstate 495 to Route 128 have increased, however with some firms moving and expanding operations into suburban locations, the Interstate 495 market actually achieved 2.8 percent annual asking rate growth. The largest submarket increase measured 12.2 percent in Route 2 West, while Interstate 495 Northeast transformed its leasing momentum into 10.1 percent annual asking rate growth. Looking forward, expect geographically well positioned, modern facilities to retain and attract new tenants as the Greater Boston office market adjusts to new tenant demand patterns.
Q2 2009
Q4 2009
Q2 2010
Q4 2010
Q2 2011
Q4 2011
Q2 2012
Q4 2012

Building Address
4400 Computer Drive 900 Chelmsford Street 100 Nagog Park 251 Locke Drive 35 Parkwood Drive 50 Minuteman Road 880 Technology Park Drive 5 Omni Way 397 Williams Street 500 Old Connecticut Path
Source: CoStar

382,000 322,200/97,200 194,800 162,000 159,800 151,800 151,600 131,200 130,000 124,700/101,100
City (Submarket)
Westborough (Mass Pike) Lowell (Route 3 North) Acton (Route 2) Marlborough (Mass Pike) Hopkinton (Mass Pike) Andover (Northeast) Billerica (Route 3 North) Chelmsford (Route 3 North) Marlborough (Mass Pike) Framingham (Mass Pike)
Class
A A B B B A A B A B
Building Size
382,000 450,800 194,800 162,000 159,800 151,800 151,600 131,200 130,000 124,700
Type
19
14 16
49
140
108
25K - 49K 10K - 24K 5K - 9K
100K+ 75K - 99K 50K - 74K
16
Research
Suburban Office
Investment Sales
A fter generating slight momentum during the second half of last year, the suburban investment sales market hit its stride during the first quarter with several significant transactions leading up to Hines Global R EITs acquisition of R iverside Center in New ton from The Blackstone Group for $197,250,000 or a remarkable $386 per square foot. Suburban investors are look ing for: well-positioned, newer buildings with strong rent rolls. By meeting these criteria, R iverside Center commanded national attention and ma x imum value. The Blackstone Group is tr ying its luck again by recently bringing New England Executive Park in Burlington to market. In addition to R iverside Center, several other properties changed hands along Route 128 during the first quarter. Piedmont Of fice Trust paid $69,321,000 to Behringer Harvard for its two building, 372,000 square foot office complex at 5 & 15 Wayside Road in Burlington. A lso along Route 128, TA Associates acquired three buildings along Totten Pond Road in Waltham for approx imately $158 per square foot or $67,000,000 from Equus Capital . A few additional transactions closed within Interstate 495s bounds during the first quarter, including Mathworkss purchase of One Boston Scientific Way in Natick . The office building measured 510,900 square feet and traded for $55,000,000. To the north along Route 3, a partnership between Echo Bridge and Grif fith Properties purchased 5 Omni Way in Chelmsford from special-ser vicer LNR Property for $3,859,000. As leasing velocity endures and assets near full occupancy, expect ongoing renewed interest in the investment sales market, with well-positioned, newer buildings attracting the most activity. With the attention Riverside Center and 5 & 15 Wayside Road received, look for additional premium suburban assets to hit the market soon.
Q1 2013
Riverside Center, Newton
5 & 15 Wayside Road, Burlington
One Boston Scientific Way, Natick
Significant Sales
Building Address
Riverside Center 5 & 15 Wayside Road Totten Pond Road Braintree Executive Park 150 Newport Avenue One Boston Scientific Way 5 Omni Way
Totten Pond Road, Waltham
Submarket Class
128 West 128 North 128 West 128 South 128 South 495 Mass Pike Route 3 North A A A A A B B
Building Size
510,000 372,000 298,000 126,000 121,000 511,000 131,500
Seller Buyer
Blackstone Group Hines Global REIT Behringer Harvard Wayside Piedmont Office Trust Equus Capital TA Associates Grossman Companies Albany Road Real Estate Normandy Real Estate Foxrock Properties Boston Scientific Mathworks LNR Property Echo Bridge/Griffith Properties
Price/SF
$386 $255 $158 $137 $115 $108 $31
5 Omni Way, Chelmsford
17
Research
2013 R ecently Completed Leases/Sales
Clarion Healthcare Partners 13,000 RSF One Financial Center, Boston Tenant Rep. - Brian G. Smallman, & Brendan W. Miller Buildium 8,000 RSF 38 Chuancy Street, Boston Landlord Rep. - Brian G. Smallman & Jeffrey C. Moore WorldOne 6,710 RSF Two Financial Center, Boston Landlord Rep. - John D. Miller, Jeffrey C. Moore & Brian G. Smallman Zevin Asset Management 5,100 RSF 11 Beacon Street, Boston Tenant Rep. - Brian G. Smallman & Brendan W. Miller New England Foliage 17,000 RSF 21 Industrial Way, Wilmington Landlord Rep. - Rob Cronin
Q1 2013
L IN I N C OL OLN N U PDATES PDA TE S

Eastern Bank 16,000 RSF 77 Accord Park Drive, Norwell Lanlord Rep. - Ellison Patten
Rolf Jensen 11,400 RSF 1661 Worcester Road, Framingham Tenant Rep. - Brian Collins, Tim Latham & Craig MacDonald Fitlinxx 8,960 RSF 115 Flanders Road, Westborough Landlord/Tenant Rep. - Tim Latham & Craig MacDonald
LPC in MA
LPC A ssignments
Cambridge
277,800 SF 287,000 SF 229,800 SF
Lincoln Property Company was named the exclusive leasing agent for 445 Simarano Drive in Marlborough during the first quarter of 2013.
Boston
88,600 SF 705,600 SF 5,101,700 SF
Leasing Leasing & Management Management Route 495 Route 128 Inner Suburbs Cambridge Boston
Please Contact Tim Latham or Craig MacDonald at (617) 951-4100 for more information.
18
Research
Q1 2013
T ERM ER MI I NOLOGY
Asking Rental Rate: the dollar per square foot amount that is quoted by the entity that is representing the space being marketed. Core Assets: Buildings that are typically Class A, located in a premium market and well leased for an extended period. Deliveries: newly completed product that was recently under construction or renovation that are available for immediate occupancy . Direct: space that is marketed on behalf of the Landlord. Flex: product that is capable of hosting tenants that vary in their use of commercial real estate. Including office, lab, R&D, warehouse, manufacturing and distribution tenants. Free Rent: the time period the tenant does not have to pay any rent, which is agreed upon by the tenant and landlord during lease negotiations. Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease. Sublease: space that is marketed on behalf of the current Tenant. Tenant Improvements (T.I.): typically a dollar per square foot amount negotiated during the lease transaction that is paid to a tenant by the landlord, or sublandlord, for the means of improving the condition of the agreed upon space. Total Availability (A.K.A. Overall Availability): all space that is available for lease. Includes marketed occupied space, sublease, and product under construction that will be delivered within two (2) years. Vacant Available: all space that is currently available to lease and immediately occupy; therefore, space that is not hosting a tenant. Unoccupied space with a future commitment are excluded. Value Add Assets: Buildings that are under 90 percent leased, not necessarily Class A and in a market with upside potential.
Lincoln Property Companys Office Overview is produced by the Boston Offices research team in collaboration with our Downtown and Suburban Brokerage Group. If you have any questions regarding market conditions and the information found in this report, please contact Scott Faber, Director of Research at sfaber@lpc.com or Ethan Robert, Research Associate at erobert@lpc.com.
All information provided in Lincoln Property Companys Office Overview are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.
19
Research
Market
BOSTON Back Bay Charlestown Fenway Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid-Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South All Ofce
Total Q1 2013 ~ Office Statistics

%
9.0% 7.2% 6.7% 4.5% 11.0% 2.5% 6.5% 7.9% 6.7% 8.9% 11.8% 2.4% 9.9% 16.3% 16.7% 14.7% 12.3% 14.2% 18.6% 18.5% 17.3% 22.5% 20.6% 17.4% 17.0% 13.2%
Rentable Square Feet (RSF)

68,796,192 14,544,971 2,798,645 1,508,623 34,765,972 1,999,017 3,061,486 7,219,000 2,898,478 9,856,520 5,058,867 2,641,905 2,155,748 107,328,491 4,053,656 62,161,773 24,771,004 19,415,252 17,975,517 41,113,062 18,376,842 6,440,093 5,249,327 6,463,020 4,583,780 185,981,203
Direct Vacancy (sf)

6,161,927 1,052,790 186,210 39,966 3,808,156 49,757 198,883 570,582 192,837 873,281 596,247 63,819 213,215 17,445,006 677,892 9,155,069 3,056,848 2,758,229 3,339,992 7,612,045 3,176,746 1,449,508 1,081,700 1,122,809 781,282 24,480,214
Total Sublease Available (sf)

986,076 289,760 34,464 442,182 3,975 7,517 156,346 51,832 122,787 76,619 4,301 41,867 3,101,220 1,918,273 1,058,848 541,703 317,722 1,182,947 646,040 283,733 52,502 145,924 54,748 4,210,083
%
1.4% 2.0% 1.2% 0.0% 1.3% 0.2% 0.2% 2.2% 1.8% 1.2% 1.5% 0.2% 1.9% 2.9% 0.0% 3.1% 4.3% 2.8% 1.8% 2.9% 3.5% 4.4% 1.0% 2.3% 1.2% 2.3%
Total Availability (sf)

10,008,878 1,876,438 248,974 39,966 5,707,344 499,811 290,625 871,821 411,153 1,159,785 717,489 148,038 294,258 21,683,207 795,371 11,673,736 4,400,153 3,421,419 3,852,164 9,214,100 4,209,615 1,687,751 1,141,896 1,314,894 859,944 32,851,870
%
14.5% 12.9% 8.9% 4.5% 16.4% 25.0% 9.5% 12.1% 14.2% 11.8% 14.2% 5.6% 13.6% 20.2% 19.6% 18.8% 17.8% 17.6% 21.4% 22.4% 22.9% 26.2% 21.8% 20.3% 18.8% 17.7%
Q1 2013 Absorption (sf)

52,800 (314,204) (75,658) 369,033 8,803 (14,372) 87,032 (7,834) (147,426) (166,782) (7,630) 26,986 657,865 (67,634) 354,475 267,209 (8,341) 95,607 371,024 182,245 (40,037) 11,180 190,066 27,570 563,239
12 Month Absorption (sf)

1,984,263 (338,355) (13,925) (19,134) 1,821,997 176,221 43,515 236,069 77,875 (271,239) (403,646) 25,704 106,703 2,198,143 53,176 1,140,700 908,601 468,154 (236,055) 1,004,267 507,116 (29,993) 75,924 231,559 219,661 3,911,167
Average Asking Rate

$44.28 $46.84 $31.88 $31.00 $47.04 $33.18 $30.87 $40.31 $37.45 $45.20 $49.09 $47.81 $33.84 $20.41 $24.23 $22.47 $26.63 $22.11 $18.81 $17.54 $17.67 $16.93 $17.53 $17.80 $17.68 $28.83
All information provided in Lincoln Property Companys Market Statistics are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.
Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease Total Availability: all space that is available for lease. Includes marketed occupied space and product under construction that will be vacated within two (2) years Vacant Available: all space that is currently available to lease and occupy; therefore, space that is not hosting a tenant. Spaces with future commitments are excluded Direct: space that is marketed on behalf of the Landlord Sublease: space that is marketed on behalf of the current Tenant Average Asking Rate: the average of a compiled set of direct asking rates per market as quoted by the landlord representative. In the Suburban markets, the average asking rate is plus tenant electric.
Research
Market
BOSTON Back Bay Charlestown Fenway Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid-Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South All Ofce
Class A Q1 2013 ~ Office Statistics

% Total Sublease Available (sf)
689,484 270,117 10,639 357,344 51,384 108,430 63,762 2,801 41,867 2,152,998 1,376,533 852,728 436,747 87,058 776,465 555,540 25,480 50,352 130,093 15,000 2,950,912

43,623,651 10,563,957 903,771 880,246 25,186,368 1,175,982 1,388,388 2,390,384 1,134,555 6,612,567 4,009,373 1,498,255 1,104,939 61,839,600 2,621,605 37,856,979 15,085,097 13,270,008 9,501,874 21,361,016 10,654,357 2,425,333 2,991,214 3,781,245 1,508,867 112,075,818
Direct Vacancy (sf)

3,908,931 750,776 26,098 39,966 2,885,410 4,413 20,703 161,514 20,051 809,755 563,109 41,635 205,011 8,785,499 372,626 5,162,175 1,747,580 1,819,919 1,594,676 3,250,698 1,538,654 456,754 476,077 680,837 98,376 13,504,185
%
1.6% 2.6% 1.2% 0.0% 1.4% 0.0% 0.0% 2.1% 0.0% 1.6% 1.6% 0.2% 3.8% 3.5% 0.0% 3.6% 5.7% 3.3% 0.9% 3.6% 5.2% 1.1% 1.7% 3.4% 1.0% 2.6%

6,628,229 1,199,472 50,737 39,966 4,441,279 450,492 30,503 245,480 170,300 1,022,926 631,950 115,192 275,784 11,905,332 490,105 6,969,101 2,772,705 2,369,882 1,826,514 4,446,126 2,436,175 507,619 526,429 838,613 137,290 19,556,487
%
15.2% 11.4% 5.6% 4.5% 17.6% 38.3% 2.2% 10.3% 15.0% 15.5% 15.8% 7.7% 25.0% 19.3% 18.7% 18.4% 18.4% 17.9% 19.2% 20.8% 22.9% 20.9% 17.6% 22.2% 9.1% 17.4%

94,067 (277,679) 16,728 326,721 605 27,692 (145,593) (177,686) 8,662 23,431 691,331 21,136 399,392 253,473 90,511 55,408 270,803 158,889 (77,683) 3,043 178,641 7,913 639,805

1,025,608 (329,594) 43,787 (21,016) 1,020,101 134,147 (18,061) 174,260 21,984 (358,956) (424,911) (3,581) 69,536 1,859,392 134,577 482,556 414,651 397,931 (330,026) 1,242,259 726,254 6,766 6,064 205,694 297,481 2,526,044
Average Asking Rate

$49.97 $54.77 $27.00 $51.64 $33.75 $40.00 $51.50 $44.00 $46.08 $50.25 $49.33 $34.38 $21.13 $25.72 $24.51 $28.94 $24.01 $20.18 $18.80 $19.08 $18.44 $18.25 $18.50 $19.70 $32.82
9.0% 7.1% 2.9% 4.5% 11.5% 0.4% 1.5% 6.8% 1.8% 12.2% 14.0% 2.8% 18.6% 14.2% 14.2% 13.6% 11.6% 13.7% 16.8% 15.2% 14.4% 18.8% 15.9% 18.0% 6.5% 12.0%
Research
Market
BOSTON Back Bay Charlestown Fenway Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South All Ofce
Class B Q1 2013 ~ Office Statistics

%
9.0% 7.6% 8.4%

25,172,541 3,981,014 1,894,874 628,377 9,579,604 823,035 1,673,098 4,828,616 1,763,923 3,243,953 1,049,494 1,143,650 1,050,809 45,488,891 1,432,051 24,304,794 9,685,907 6,145,244 8,473,643 19,752,046 7,722,485 4,014,760 2,258,113 2,681,775 3,074,913 73,905,385
Direct Vacancy (sf)

2,252,996 302,014 160,112 62,746 922,746 45,344 178,180 409,068 172,786 63,526 33,138 22,184 8,204 8,659,507 305,266 3,992,894 1,309,268 938,310 1,745,316 4,361,347 1,638,092 992,754 605,623 441,972 682,906 10,976,029
Total Sublease Available (sf)

296,592 19,643 23,825 84,838 3,975 7,517 104,962 51,832 14,357 12,857 1,500 948,222 541,740 206,120 104,956 230,664 406,482 90,500 258,253 2,150 15,831 39,748 1,259,171
%
1.2% 0.5% 1.3% 0.9% 0.5% 0.4% 2.2% 2.9% 0.4% 1.2% 0.1% 0.0% 2.1% 0.0% 2.2% 2.1% 1.7% 2.7% 2.1% 1.2% 6.4% 0.1% 0.6% 1.3% 1.7%

3,380,649 676,966 198,237 62,746 1,266,065 49,319 260,122 626,341 240,853 136,859 85,539 32,846 18,474 9,777,875 305,266 4,704,635 1,627,448 1,051,537 2,025,650 4,767,974 1,773,440 1,180,132 615,467 476,281 722,654 13,295,383
%
13.4% 17.0% 10.5% 10.0% 13.2% 6.0% 15.5% 13.0% 13.7% 4.2% 8.2% 2.9% 1.8% 21.5% 21.3% 19.4% 16.8% 17.1% 23.9% 24.1% 23.0% 29.4% 27.3% 17.8% 23.5% 18.0%

(41,267) (36,525) (92,386) 42,312 8,198 (14,372) 59,340 (7,834) (1,833) 10,904 (16,292) 3,555 (33,466) (88,770) (44,917) 13,736 (98,852) 40,199 100,221 23,356 37,646 8,137 11,425 19,657 (76,566)

958,655 (8,761) (57,712) 1,882 801,896 42,074 61,576 61,809 55,891 87,717 21,265 29,285 37,167 338,751 (81,401) 658,144 493,950 70,223 93,971 (237,992) (219,138) (36,759) 69,860 25,865 (77,820) 1,385,123
Average Asking Rate

$32.92 $35.64 $33.00 $31.00 $31.17 $27.50 $29.77 $36.14 $31.55 $38.64 $40.00 $42.33 $27.00 $18.21 $22.32 $19.72 $23.52 $18.24 $17.49 $16.49 $16.10 $16.14 $16.97 $16.73 $17.32 $22.19
10.0% 9.6% 5.5% 10.6% 8.5% 9.8% 2.0% 3.2% 1.9% 0.8% 19.0% 21.3% 16.4% 13.5% 15.3% 20.6% 22.1% 21.2% 24.7% 26.8% 16.5% 22.2% 14.9%

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Boston Cambridge Suburbs Q1 2013

(617) 951-4100 www.lpcboston.com

10 Year Vacancy Rate

Net Absorption 1,984,000 SF

Net Absorption & Total Availability

20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%

(617) 951-4100 www.lpcboston.com

South Station North Station Financial District

Fenway Midtown Back Bay

Direct Vacancy 9.0%

Sublease Availability 1.6%

Total Availability 15.2%

Asking Rate $49.97/SF

Recent Significant Leases

Net Absorption and Direct Vacancy

12.5% 11.0% 9.5% 8.0% 6.5% 5.0% 3.5% 2.0%

$70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00

Sublease Availability (RSF)

$70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00

125,000 RSF 0 RSF

West End North End North Station Beacon Hill

Largest Contiguous Blocks of Space

Contiguous Blocks by # of Options

Contiguous RSF Available

25K - 49K 10K - 24K 5K - 9K

100K+ 75K - 99K 50K - 74K

(617) 951-4100 www.lpcboston.com

Direct Vacancy 9.0%

Sublease Availability 1.2%

Total Availability 13.4%

Asking Rate $32.92/SF

Recent Significant Leases

Net Absorption and Direct Vacancy

20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0%

$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00

$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00

$45.00 $37.50 $30.00 $22.50 $15.00 $7.50 $0.00

Largest Contiguous Blocks of Space

Contiguous Blocks by # of Options

Contiguous RSF Available

(617) 951-4100 www.lpcboston.com

Two Oliver Street

Building Size (RSF)

306 Dartmouth Street

(617) 951-4100 www.lpcboston.com

10 Year Vacancy Rate: Office & Lab

Market Trends: Office

Net Absorption (271,200) SF

Direct Vacancy 8.9%

Net Absorption and Total Availability

Jeffrey C. Moore Assistant Vice President jmoore@lpc.com

Jesse Flynn Senior Associate jcflynn@lpc.com

-150,000 SF -225,000 SF -300,000 SF

(617) 951-4100 www.lpcboston.com

Mid Cambridge - Class A & B

East Cambridge - Class A & B West Cambridge - Class A & B Equilibrium

Direct Vacancy 8.9%

Sublease Availability 1.2%

Total Availability 11.8%

Asking Rate $45.20/SF