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?
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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