The commercial real estate market in metro Boston is currently facing challenging circumstances that are impacting markets worldwide. The fundamentals have weakened, resulting in higher than average vacancies and lower absorption rates in certain asset classes and locations. The office sector has been particularly hard hit, while industrial and flex assets have maintained a strong position with vacancies below their historical average.
Boston continues to prove itself as a resilient real estate hub and a desirable global destination. This is evident in the recent decision by Lego to relocate its corporate headquarters from Connecticut to Boston, as well as MFS's commitment to a 10-year renewal of their 313,000 square feet of space in the Back Bay. The suburban office market is also displaying strength, with FM Global securing 130,000 square feet in Norwood this year. The industrial market has experienced several significant deals, such as Beacon Roofing Supply leasing 101,200 square feet in South Easton and Locus Robotics pre-leasing 157,000 square feet of space in Wilmington.
Despite the challenging circumstances, the Commonwealth of Massachusetts continues to exhibit resilience in the face of adversity. Hunneman has remained steadfast in closing deals and working closely with its clients to maintain momentum. With ±884,346 square feet in leasing transactions, approximately $120 million in sales transactions, and a 3.1 million square foot increase in property management assets, Hunneman is dedicated to its clients and is poised to end 2023 on a high note. In light of its success, Hunneman would like to highlight some of the remarkable deals that have taken place in 2023.
Investment Sales
Hunneman has achieved significant success in completing sales transactions, totaling $120 million year to date. Among the notable deals, the team led by Executive Vice President and Principal, Carl Christie, along with Vice President Dan McGee, closed a lucrative generational sale of a three-building multi-family portfolio in Boston's South End. The portfolio, consisting of 26-30 Rutland Street, 105-117 West Concord Street, and 475 Shawmut Avenue, was sold for a record breaking $27.5 Million. Hunneman effectively represented the seller, Rutland Housing Limited Partners, and procured the buyer, New England Realty Associates.
Another noteworthy transaction involved the sale of 180 & 190 VFW Drive, a ±49,500 SF indoor sports complex, in Rockland, MA. The team led by Senior Vice President Henry Lieber and Assistant Vice President Bill Rand along with Executive Vice President Jim Boudrot and Vice President Gina Barroso, secured a sale price of $8.5 Million. These successful deals highlight Hunneman's expertise and commitment to delivering exceptional results for its clients.
Leasing
On the landlord representation side, the Hunneman team closed transactions totaling ±411,073 square feet with fifty-eight deals. Among the notable deals was the lease of a 23,055 square-foot space to Boston Light and Sound, completed by Executive Vice President Tyler Ewing on behalf of their client, Tiger Holdings LLC, at 420 Pearl Street, Malden, MA. Additionally, Executive Vice Presidents Ned Halloran and Leeanne Rizzo, along with Vice President Connor Hayes, secured a lease of 55,750 square feet to LogiWorld LLC at 56 Pembroke Woods Drive for their client Pembroke Woods Venture Realty LLC.
On the tenant representation side, Hunneman successfully completed transactions totaling ±473,273 square feet with forty-three deals. The team, led by Executive Vice Presidents Jim Boudrot and Steve James, alongside Vice President Patrick Grady, secured a long-term lease of 33,000 square feet at 8 Federal Street in Billerica for their client, AM Batteries. Additionally, the team leased 37,267 square feet to Envision Energy at Northwest Park in Burlington, MA.
Property Management
The Property Management Group at Hunneman has achieved a significant milestone this year by successfully managing over 22.3 million square feet of space. This marks an impressive increase of 3.1 million square feet since 2022, with a fourteen building addition to its portfolio. In this accomplishment, Hunneman would like to highlight two new buildings, made possible through their longstanding partnership with Rhino Capital.
Rhino Capital, a valued and long-time client of Hunneman, recently purchased two buildings in Andover, MA: 6 Tech Drive and 50 Minuteman Road. These buildings cater to single tenant, office, and R&D users. Of particular note is 6 Tech Drive, a class A, two-story building spanning 128,400 square feet. Built in 1984 and renovated in 2017, the space is fully leased to Draeger Medical Systems.
This latest addition to Hunneman's portfolio further solidifies their position as a trusted and reliable property management company. With their exceptional track record and commitment to delivering outstanding results, Hunneman continues to thrive in this challenging real estate market.
For more information please contact:
Steve Prozinski, CEO | sprozinski@hunnemanre.com
Peter Evans, Executive Vice President & Managing Principal | pevans@hunnemanre.com
Mark Fallon, Director of Research & Strategy | mfallon@hunnemanre.com