HomeMy WebLinkAbout2014-11-19-EDAC-min.attach Lexington'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 ®s t Pr!ce for OPP CE Per SP - 128 No etkl west c `ce
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A,P-agP X PP S P OCC'CP - 128 Not- vest Oce
5'
$4,09
53.37
$3•21
$2.89
$2.73
$2.67
$2.55
$2.41
mm
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• A company's price
sensitivity and
needs factor into
Office List Price Range the location
(full service decision
� Why the difference.?
• Policy decisions can
$27 22 • Location Potential Municipal Control play role in
Waltham • Parking Connected to Policy Decisions perception as well
• Access to Labor as price
• Visibility
• Restaurants Zoning/Land Use
$23.50
CPA - potential commercial and industrial exemptions
Bedford
— • Amenities —
• Age of Building Water and Sewer — block structure
• Transportation Tax Rate/Shift
$22 21 Options
Billerica
• Reputation
• Taxes
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
Source Costar;Filters:Buildings 10K SF<,Not Owner Occupied,Cass A&B
9.1%
15.0%
13 7% 11.1% 13.3% 10.5%
12.3%
10.9%
=
= —
NEEDHAM WALTHAM NEWTON BURLINGTON WAKEFIELD WOBURN BEDFORD BILLERICA
Listed Rent Exclusive of Taxes Taxes
=--=
Lab findings TBD
--ex Per Stia-ee root= ,ab Space
$8.92
$8.07
•:;
$6.67
$5.78
$4.28
$3.39
$2.93
$2.83 $2.79
$2.50
$2.22 52.11
$2.36 $2.39
$2.24
$1.99
$1.56 $1.57
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Assessment Per Square root= ,ab Space
$269
$247
$205
$177
$129
$97
$90
$85 $86.50
11 $77
$62 $63 $67 $68 $64
560
557
$47
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Water and Sewer Rates
Sample Lexington properties used to demonstrate how these charges compare across communities
- -7_
Actual FY14 Water/Sewer Usage (combined total) 16,351 HCF 11,645 HCF
Total FY14 Charges $195,321 $135,763
Average charges*
Lexington as compared to average ($)
Lexington as compared to average (%)
*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
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