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.
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