Fall 2009 - O`Brien Commercial Properties

        
        





Commercial Real Estate
Broker- Will train.
OCP INC. is expanding
and hiring an additional
agent. Interested?
Contact:

              

  



br
id
ge
Mil
for
op
ed
al
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e
M endon
br
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Bla
ck
sto
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Weston
Norf
olk
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gton
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W il
din
Wakefield
Rea
Stoneham
Wakefield
Stoneham
B urli ngt
on
De
T
ET
ER
EV
To
N*
STO
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Mil
am
*
Westwood
Canton
Sharon
Q
Br
o
Avon
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ro
lb
Ho
d
lan
Is
de
Foxborough
Rh
UINCY
ain
d
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Nor
ne
BO
dh
Dover
Millis
Medway
B
Needham
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ley
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ll
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li
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Upton
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n
isto
Holl
TOP LISTING BROKER SALES- I-495
land
D
S to
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ton
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W
al
Weston
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al
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gton
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TOP LISTING BROKER SALES- I-495
LIN
FRA
NK
B ellingham
S to
ugh
ton
Maynard
Wayland
Shi rley
ter
cas
Millville
h
Hopkinton
Grafton
No
ug
SO
M
ER
CA
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MB
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WAT E R T OW N
h
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
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n
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OR
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
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to
us
In this well known Buffett proverb, he is essentially saying investors should not be so focused on “timing”
the market. However, if somebody does wish to attempt this rare “buying at the bottom” or “selling at the
top,” then he advises that they should take the temperature of the market by looking at the actions of the
masses around them and then do the opposite. This philosophy could be applied by anyone evaluating real
estate as well. Instead of wondering if the market has peaked or bottomed—buyers should be more concerned with a property’s functionality, that it is priced competitively compared to the current market, and
that the price is affordable in their current financial position. If a prospective property satisfies these three
criteria, then a good argument can be made to buy it even in a fluctuating market. Understandably, most
people seem to prefer a more complicated approach to buying or selling by adding the market timing
component. In this case, what should a buyer make of the market’s current state? It is impossible to know
for sure if we are at the bottom. What we can say based on Buffet’s advice and the level of fear that currently
exists is that now looks like a great time to buy real estate.


uth
gh
rou
DF
DY
LYNN
ug
“If [investors] insist on trying to time their participation in equities, they should try to be fearful
when others are greedy and greedy when others are fearful.” -Warren Buffett, Berkshire Hathaway 2004
st
We
Ux
D ougl as
h
bo
y
ME
MELR
OSE
rs
BO
Sa

S utton
So
ld
ie
nf
L yn


          
ry
lbu
M il
ur
ug
ing
Danve
PEA
t
r
2009
Q3
on
ate
rn
sb
ro
h
c
Win
Arl
r
e
est
lm
ew

ER*
bo
WALTHAM
RN
Be
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w
EST
MARLBOROUGH
rth
d

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Br
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RC
No
Sudbury
ld
fie

Sh
WO
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to
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Bo
Hudson
Berlin
Lincoln
North
Reading
BU
WO
N
TO

Stow
nt
Cli
Concord
W

Bolton
on
Bed
Acton
ed

Sterling
gh
orou
Boxb
ford
ton

Harvard
Carlisle
M

R
Billerica
Littleton
NE

STE
Westford
Ayer
Andover
Lexing

MIN
rn


2009
Q2
Joel Aho takes the respected title of “Broker
of the Year” at O’Brien Commercial
Properties. His consistent monthly sales
volume is a testimony of his dedication to his
client’s objectives. In addition to his steady
leasing volume throughout the first three
quarters of 2009, Aho successfully sold five
buildings and has several more currently in
play. A graduate of Babson College, Joel is a
six-year veteran in the commercial and
industrial real estate brokerage industry and
has been recently promoted to Vice President
at O’Brien Commercial Properties, Inc.
rgeto
G eo
Tewksbury
bo
   


LEO
T
Groton
er
o
Rh
d
lan
Is
de
Foxborough
Avon
ok
ro
lb
Ho

MAP #1
h
ug
oro
LOW
gsb
ELL*
yn
Sh
Sharon
e

Pepperell
k
Canton
tre

Townsend
am
ain

2009
Q1
nd
vela
G ro
Dracut
tic
ne
am
nth
Wre
Br


2008
Q4
METHUEN
Dunstable
gh
sto
Q

New Hampshire
Ashby
Na
ck
*
d
woo
UINCY

2008
Q3
The Route I-495 Market for these purposes is defined as existing office,
flex, and industrial buildings which are located on central I-495 from the
Rhode Island to New Hampshire borders.
The overall vacancy rate for this sampling of 103 million square feet is
14%. Of that total figure, there is 34 million square feet of office space
topping the vacancy rates with 15% vacant and an average asking rent
of $18.16 per square foot, gross. On the low end of this sampling, 44
million square feet of industrial space is 13% vacant with an average
asking rent of $5.46 per square foot triple net. The balance, 25 million
square feet of flex space, is 14% vacant and has an average asking rent
of $8.69 per square foot, triple net. Year to date net absorption overall is
at approximately -1% or just under 1 million square feet of space.
min
Bla
n
to
Mil
am
Westwood
Nor
N*
STO
BO
dh

2008
Q2
Fra
ge
B
ne


2008
Q1
rd
sf o
el m
Ch
id
olk
T
ET
ER
EV
h
olp
nd
Ra
M endon
br
Norf
RE
REVE
e
us
op
ed
al
De
Dover
Millis
Medway
D
DY
LYNN
ug
ge
d
Sa
id
for
SO
M
li
ok
ro
Needham
ld
fie
br
Mil
ley
es
ll
We
ed
H
n
MALDEN
OR
ER
CA
VIL
MB
RID LE
GE*
WAT E R T OW N
M
Upton
rth
n
isto
Holl
to
MELR
OSE
rs
BO
t
land
DF
Danve
PEA
on
Ash
ME
lm
h
Hopkinton
Grafton
No
ug
h
ing
Be
ro
r
e
est
c
Win
Arl
N
TO
bo
rn

uth
gh
rou
RN
W
st
We
bo


h
bo
y
er
S utton
So
Sh
ry
lbu
M il
ur
ug
k
rn
sb
ro
am
ER*
bo
tic
w
EST
MARLBOROUGH
rth
WALTHAM
gh
re
RC
No
Sudbury
North
Reading
BU
WO
NE
Sh
WO
n
to
yls
Bo
Hudson
Berlin
Lincoln
Na
  
Stow
nt
Cli
Concord
ton
Bolton
on
Bed
Acton
Lexing
Sterling
gh
orou
Boxb
ford
min

Harvard
Carlisle

2007
Q4

g
ur
R
Billerica
Littleton

GRAPH KEY
Vacancy
Office rent (Est Gross)
Non-Office Rent (Triple Net)

nb
STE
Westford
Ayer

    
  
 
  
 
  
   
  

 
   
    
 

  
  
  
  



2007
Q3
ne
MIN
Andover
Tewksbury


2007
Q2
Lu
Groton
ld
ie
nf
L yn
LEO
T
h
ug
oro
LOW
gsb
ELL*
yn
Joel Aho takes the respected title of “Broker
of the Year” at O’Brien Commercial
Properties. His consistent monthly sales
volume is a testimony of his dedication to his
client’s objectives. In addition to his steady
leasing volume throughout the first three
quarters of 2009, Aho successfully sold five
buildings and has several more currently in
play. A graduate of Babson College, Joel is a
six-year veteran in the commercial and
industrial real estate brokerage industry and
has been recently promoted to Vice President
at O’Brien Commercial Properties, Inc.


   


   

$ 4.00
2007
Q1
rd
Middleton
xfo
Bo
rth ver
No ndo
A
Pepperell
Fra
              

2009
Q3
rgeto
G eo
Dracut
rd
sf o
el m
Ch
Commercial Real Estate
Broker- Will train.
OCP INC. is expanding
and hiring an additional
agent. Interested?
Contact:

2009
Q2
nd
vela
G ro
METHUEN
Dunstable
MAP #1
g
ur


2009
Q1
rd
Middleton
xfo
Bo
rth ver
No ndo
A
Townsend
nb

2008
Q4
To
New Hampshire
Ashby
ne

2008
Q3
The Route I-495 Market for these purposes is defined as existing office,
flex, and industrial buildings which are located on central I-495 from the
Rhode Island to New Hampshire borders.
The overall vacancy rate for this sampling of 103 million square feet is
14%. Of that total figure, there is 34 million square feet of office space
topping the vacancy rates with 15% vacant and an average asking rent
of $18.16 per square foot, gross. On the low end of this sampling, 44
million square feet of industrial space is 13% vacant with an average
asking rent of $5.46 per square foot triple net. The balance, 25 million
square feet of flex space, is 14% vacant and has an average asking rent
of $8.69 per square foot, triple net. Year to date net absorption overall is
at approximately -1% or just under 1 million square feet of space.
Ux

2008
Q2

D ougl as

2008
Q1

d

2007
Q4
$ 6.00
13.0%
Wayland
2007
Q3
$ 8.00
13.2%
LIN
2007
Q2
13.4%
FRA
NK
2007
Q1
10th Century, BC
$10.00
B ellingham
$ 4.00
$12.00
13.6%
Shi rley
13.0%
King Solomon
$14.00
13.8%
ter
$ 6.00
$16.00
14.0%
Millville
$ 8.00
13.2%
$18.00
14.2%
cas
13.4%
14.4%
Lan
$10.00
$20.00
*
13.6%
GRAPH KEY
Vacancy
Office rent (Est Gross)
Non-Office Rent (Triple Net)
14.6%
RG
$12.00
$22.00
BU
13.8%
“As he thinketh
in his heart,
so is he...”

Rental Rate
$24.00
14.8%
CH
$14.00



Vacancy & Rental Rates- I-495 Market
Vacancy Rate
15.0%
FIT
14.0%


   


   


West
Boylston
$16.00
Lu
    
  
 
  
 
  
   
  

 
   
    
 

  
  
  
  



$18.00
14.2%
Lan

14.4%
*

$20.00
RG
10th Century, BC
14.6%
BU
King Solomon
$22.00
CH
“As he thinketh
in his heart,
so is he...”

Rental Rate
$24.00
14.8%
FIT


Vacancy & Rental Rates- I-495 Market
Vacancy Rate
15.0%
West
Boylston


   



























Whitman
Br
idg
ew
ate

r


          

“If [investors] insist on trying to time their participation in equities, they should try to be fearful
when others are greedy and greedy when others are fearful.” -Warren Buffett, Berkshire Hathaway 2004
In this well known Buffett proverb, he is essentially saying investors should not be so focused on “timing”
the market. However, if somebody does wish to attempt this rare “buying at the bottom” or “selling at the
top,” then he advises that they should take the temperature of the market by looking at the actions of the
masses around them and then do the opposite. This philosophy could be applied by anyone evaluating real
estate as well. Instead of wondering if the market has peaked or bottomed—buyers should be more concerned with a property’s functionality, that it is priced competitively compared to the current market, and
that the price is affordable in their current financial position. If a prospective property satisfies these three
criteria, then a good argument can be made to buy it even in a fluctuating market. Understandably, most
people seem to prefer a more complicated approach to buying or selling by adding the market timing
component. In this case, what should a buyer make of the market’s current state? It is impossible to know
for sure if we are at the bottom. What we can say based on Buffet’s advice and the level of fear that currently
exists is that now looks like a great time to buy real estate.

PRSRT STD
PRSRT
STD
U.S.
POSTAGE
U.S. POSTAGE
PAID
PAID
   

  






      

 
  
 

 
    
PRSRT STD
PRSRT
STD
U.S.
POSTAGE
U.S. POSTAGE
PAID
PAID
   

  






      

 
  
 

 
    
                                     
          
         
          
      
 
                                     
          
         
          
      
 
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














                               
                               



  


  
















   



       






  





  


                               
                               



  


  































































   



       


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  
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
  
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