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HomeMy WebLinkAbout2014-11-19-EDAC-min.attachLexington's Competitive Commercial Status How Does Lexington Fare when a Business is choosing a location? • Lexington is part of the 128 North/West Market Other communities part of the 128 North/West Market: Bedford, Billerica, Burlington, Needham, Newton, Waltham, Wakefield, and Woburn* • Reviewing data on office space — we have identified variations between Town and CoStar data • Lab space analysis is inconclusive at this point — a larger sample may be needed • Continuing to analyze water and sewer costs for office and lab properties among Lexington and surrounding communities *Weston and Wellesley are also included in this market but have a nominal amount of large commercial space Average List Price for OFFICE Per SF - 128 Noi II/West Office !rcRdes 1ax, LJtiities, and in surance Source: Costar; Filters: Full Service Price, Buildings 10K SF<, Not owner occupied, Cass A&B Needham Waltham Newton Burlington Wakefield Woburn Bedford Billerica $4.50 $4.00 53:50 $3.00 $2:50 $2.00 $1.50 $1.00 $0.50 $0.00 Average Tax Per SF for Office 128 No Source: Costar; Filters: Buildings 101-<<„ Not owner occupied: Class A&B Ice Waltham Niewton Wakefield Bedford Burlington Needham Woburn Billerica Office List Price Range (full service) Bedford $22.21! Billerica Why the difference? • • • • • • • • • • Location Parking Access to Labor Visibility Restaurants Amenities Age of Building Transportation Options Reputation Taxes Potential Municipal Control Connected to Policy Decisions as price • A company's price sensitivity and needs factor into the location decision • Policy decisions can play role in perception as well Zoning /Land Use CPA - potential commercial and industrial exemptions Water and Sewer — block structure Tax Rate /Shift Acknowledge Assumptions in Value that Affect Taxes: Income Approach Cap Rates Market Rates Vacancy Percent of the List Price per SF for Office that is Taxes 9.1% 15.0% Source: Costar; Filters: Buildings 10K SF<, Not Owner Occupied, Class A &B 13.7% 11.1% 13.3% 10.5% 12.3% 10.9% NEEDHAIVI WALTHAM BEDFORD BILLERICA Listed Rent Exclusive of Taxes Taxes Lab findings: TBD $10.00 $9.00 $8.07 $8.00 $r.00 $6.67 $6.00 $ 5.00 $4.00 $ 3.00 $ 2.00 $ .00 $0.00 $5.78 830 Winter 35 153 Second Gatehouse Waltham $2.93 $8.92 $2.50 lax Per Square Foot = Fab Space $4.28 $2.83 $2.79 $L99 $1.56 $1.57 $3.39 $2.22 $2.36 $2.39 $2.24 $2.11 Second 129 29 Dun am 749 39 Manila 63 Second 129 34 40 Ave Roan Middlesex Road Ave Middlesex Commerce Wiaailst'1 Way Patriot Park Road Billerica Burlington Woburn 205 Rd 36 MidWisex Bedford 180 32 Wiggins $300 5250 $200 $ 50 $100 $50 s0 $247 $205 $177 $90 $77 $269 Assessment Per Square Foot = Fab Space $129 $85 $47 $62 $86.50 $57 $63 $60 $67 830 Winter 35 153 Second 9 Fourth 360 Second 29 29 Dun m 749 39 Manning 63 Second 129 34 40 205 36 Gate ouse Avenue Ave Ave Road Middlesex Road Ave Mi.ddiesex Commerce erce Wiaai tst'1 Buriinaton Mi.d ilex Way Patriot Park Rd Tyke Waltham Road Billerica Woburn Bedford $97 $68 $64 180 32 Wiggins Hartwell Rd Water and Sewer Rates Sample Lexington properties used to demonstrate how these charges compare across communities Actual FY14 Water /Sewer Usage (combined total) Total FY14 Charges Average charges* Lexington as compared to average ($) Lexington as compared to average ( %) E � _ 16,351 HCF $195,321 *Eight communities being used in analysis: Lexington, Bedford, Waltham, Needham, Burlington, Newton, Wakefield and Woburn. Will apply each community's FY14 rates to the FY14 usage at each property. 11,645 HCF $135,763