Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOSTON-Local brokers tell GlobeSt.com that while the market for industrial space in the suburbs remains steady, the office market here continues to decline, with no indications yet of a recovery. Deals do continue to be made, but rental prices have dropped significantly.

When the market was hot out here, many warehouses were converted to office space to keep up with extremely low vacancy rates. While demand has not increased over the past year, the low availability of industrial space has enabled rents to remain fairly constant. “The industrial side of the suburban market has not been greatly impacted by the downturn,” a local source in the industry tells GlobeSt.com. “Lease rates have been fairly steady.”

In a recent lease deal in the industrial market, Gentle Giant Moving Co. rented new warehouse space at One Burlington Ave. in Wilmington. It is leasing 81,300 sf of the 450,000-sf building, space that was formerly occupied by Sweetheart Plastics. David Connolly, first vice president and partner with CB Richard Ellis, represented the owner, GFI Partners, in the deal, while Insignia/ESG Inc. negotiated for the Somerville-based moving company.

The suburban office market continues to feel the effects of the recent downturn. “The office market has been impacted because of the sublease market,” notes the source. “Lease rates have comes down at least 20%.”

Despite the falling rents, deals are happening out here, indicating there is life left in this market. Connolly of CB Richard Ellis represented Millipore Corp. in a 24,000-sf office space lease at 900 Middlesex Turnpike in Billerica. The deal is in addition to an 88,000-sf building that the Gutierrez Co. agreed to develop for Millipore last year. The two sites are adjacent in the Middlesex Technology Center office park.

Rofin-Baasel Inc., a division of Rofin-Sinar Technologies Inc. leased a 22,500-sf lease of office/research and development space at 330 Codman Hill Road in Boxborough. NAI Hunneman Commercial Co. senior vice president Stephen James and vice president James Boudrot represented Rofin-Baasel. Steve Brooks of Asset Management and Stan Berwick of New England Industrial Properties dealt for Berkeley Investments Inc., the Boston-based owner.

Hunter Emerson and John Power, also of CB Richard Ellis, brokered a sublease deal for Eastman Software, which is subleasing 18,200 sf to MEMEC LLC at Concord Road Corporate Center in Billerica. Enron Energy Services leased 15,238 sf at 500 Federal St. in Andover from the owner, the Massachusetts School of Law.

The US Postal Service leased 8,300 sf from Cummings Properties at 444 Washington St. in Woburn. CB Richard Ellis senior vice president James Travers and associate Michael Keyes represented the Postal Service. Derek Cook acted for Cummings Properties, which is based in Woburn.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.