June 28, 2018 Peter Forman President & CEO South Shore Chamber - PowerPoint PPT Presentation

June 28, 2018

Peter Forman President & CEO South Shore Chamber of Commerce

George Toma Chairman South Shore Chamber of Commerce

Jim McDonough President & CEO Envision Bank

Elliot F. Eisenberg, Ph.D. President: GraphsandLaughs, LLC

: Blockchain/Bitcoin : Who is Satoshi Nakayama : The media loves it : I must get in on it! AND ** : Let me borrow to do it! **

: Leverage was limited : Leverage is impossible : Leverage was way too easy : No real economic harm : Hidden or Disclosed

Elliot F. Eisenberg, Ph.D. Cell: 202.306.2731 Elliot@graphsandlaughs.net www.econ70.com Do you want to get my daily 70 word economics email? Please give me your business card or text “bowtie” to 22828

Martie Dwyer Senior Vice President – Commercial Banking Envision Bank

Rich Beal President: A.W. Perry, Inc.

Geography 128 Ring 495 Ring

General Stats = Glass

Continued theme of limited large blocks of space 128 Core consistent in (Waltham) 128 Ring, a South Shore Absorption suburban surplus has remains dramatically driver of not spurred among the impacted by construction recent lowest Reebok’s demand vacancy departure for Significant variation along 495 submarkets Seaport, in pricing across despite being suburban markets a singular location

In a word STABLE

Most suburban businesses are content & thriving Select 200k sf+ suburban occupants, logo at primary suburban location

Developers regionally responding to resounding desire for transit access 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 0 5 1991 - 2000 2001 - 2010 2011 - 2020 10 21 million sf office & lab delivered 30 million sf office & lab delivered 22 million sf office & lab delivered 15 20% 36% 73% 20 within a ten-minute walk of transit within a ten-minute walk of transit within a ten-minute walk of transit 25 30 35 40

Suburbs cognizant of challenges in making commuter rail relevant to workers When depending on walking distances, only a relatively small share of suburban population is within range of a commuter rail station 220,000 within a 10 minute walk

Suburbs cognizant of challenges in making commuter rail relevant to workers Last mile solutions dramatically extend the range of the car-free commuter throughout the region 3.1 million within a 10 minute drive

South Shore the most leased of suburban submarkets … but not the most “exciting”

Mike Edward Executive Vice President: Perry Brokerage Associates.

Geography Streetcar Ring Cambridge Urban Boston

General Stats = Glass

Urban absorption Construction remains strong, though pipeline numbers may trail the Choices larger dominated by two million sf/year than 200k sf in built-to-suit pace seen in the early very short activity 2010s supply, despite eight such commitments of that size last two quarters Cambridge vacancy remains critically low, at Cambridge 2.0 percent, just office 1.0 percent in construction Kendall pipeline Streetcar Ring eclipses one increasingly serving as million sf relief valve for squeezed out tenants

In a word HISTORIC

An attraction on the part of the world’s innovators 600k sf 800k sf 1.0mm sf 2018 Philips NBC Universal PTC 2017 Facebook New/out-of-market occupants Alexion Pharma Infill occupants General Electric 2016 Reebok 2015 Bristol-Myers Squibb 2014 Baxalta Twitter 2013 Converse Amazon 2011 Pfizer Google 2009 Wyss Institute 2007 Microsoft 2.1mm sf 2005 Shire Schlumberger 2004 Broad Institute 2.8mm sf 2001 Novartis Currently anticipated eventual footprint of new Greater Boston or urban infill tenants since 2001

And it’s not over World’s 100 largest biopharmaceutical companies 2015 revenues World’s 100 largest biopharmaceutical companies 2015 revenues $10 billion $20 billion $30 billion $40 billion $50 billion Johnson & Johnson Cambridge Novartis Sanofi Cambridge Cambridge Pfizer Merck & Company Cambridge, Andover Fresenius AstraZeneca Boston Waltham Waltham GlaxoSmithKline Waltham AbbieVie Cambridge Amgen Cambridge Abbott Laboratories Worcester Bristol-Myers Squibb Cambridge Takeda Pharmaceuticals Cambridge Merck KGaA Billerica, Rockland Biogen Cambridge Baxter Cambridge Celgene Cambridge Shire Cambridge, Lexington Quintiles Cambridge Eisai Cambridge Sun Pharmaceuticals Billerica, Wilmington Sumitomo Dainippon Cambridge Flagship >100k sf Boston Market Branch 10-100k sf Presence Alexion Pharmaceuticals Lexington Beachhead <10k sf Alere Waltham Ipsen Cambridge Icon Cambridge, Marlborough

With significant demand coming from regional players Select occupants relocating from the suburbs to Urban Boston & Cambridge, last three years

With demand surging for all urban assets Urban Boston office investment price per sf by Class, since 2009 $900 $831 $800 213% $721 $700 Increase in Class B $ per sf Investment sales since 2009 $577 $600 $524 $513 $490 $500 $426 $393 $394 $400 $354 $322 $317 $315 $299 $275 $300 $257 $207 $200 $167 $100 A B $- 2009 2010 2011 2012 2013 2014 2015 2016 2017

Urban Overview | Effects BOSTON LANDING ASSEMBLY ROW CAMBRIDGE CROSSING INK BLOCK And persistent demand driving emergence of new urban-style commercial clusters Suffolk Dow ns Site Boston/Revere Malden Center Redevelopment Everett Avenue Malden Chelsea Boynton Yards Somerville Widett Circle Boston Flow er Exchange Site Future Harvard Boston campus Allston Morrissey Blvd Redevelopments Tremont Dorchester Crossing Roxbury

TO: 228-28 SUBJECT: pbaresearch @BOSqFt

Charlene Flynn President: The TLC Companies

 Increased demand for transit-oriented locations  Mixed use, convenience-focused environments  Some markets to watch:  Quincy Center up 12.8%  Wollaston up 8.3%  Davis Square up 100%  Days on market decreasing as prices going up

 Mixed-use, single level such as BRIO  Golf and community-oriented such as Pinehills  Large, master planned such as Union Point  Town center vibe such as Mill Wharf and Lincoln Building

Peter Forman President & CEO South Shore Chamber of Commerce