2020 Review & 2021 Outlook - New Hampshire - Colliers
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New Hampshire
2020 Review
& 2021 Outlook
Accelerating success.
Table of Contents New Hampshire Insight
New Hampshire Insight Office Market
Office Market......................................................................................................................... 2
Industrial Market................................................................................................................... 4
Job Market.............................................................................................................................. 6 90.5% $19.01
occupancy rate rents (MG)
Submarket Summaries
Concord.................................................................................................................................. 8
Manchester.......................................................................................................................... 10
Nashua ................................................................................................................................. 12
Salem.................................................................................................................................... 14 Industrial Market
Portsmouth.......................................................................................................................... 16
Dover..................................................................................................................................... 18
95.6% $7.05
Our Research............................................................................................................................. 20 occupancy rate rents (NNN)
Unemployment rate
4.0%
as of December 2020
b 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire
local CPA firm. The company plans to consolidate and is already 44% leased. With the occupancy rate
its Nashua and Manchester offices into this 27,338 in the City of Portsmouth at 96.6%, we expect the
Office Market SF building. remaining space will lease quickly.
• After selling 9 Executive Drive, Cameron Real Estate
purchased the multitenanted 26,975 SF Class B
office building at 6 Trafalgar Square in Nashua for
$2.0 million ($74.14 PSF).
At the beginning of the pandemic, the headline across Quarterly Absorption
the US was that this would be the end of the office
market. Even though that has not been the immediate
93.5%
case, it is not surprising that office occupancy rates 92.6%
Concord
dipped year-over-year, ending the year at 90.5%. 93.4% 145 Maplewood Avenue | Portsmouth, NH
92.3%
Although the office occupancy rate fell by 0.68%, rents • Sheehan Phinney PA renewed its downtown
rose by $0.28 PSF (a 1.5% jump), ending the year at 92.7% Manchester lease in the Class A building at 1000
91.8%
$19.01 MG. The increase is not necessarily surprising Manchester
92.0% Elm Street, in 38,390 SF.
considering the new space hitting the market is mostly 91.3%
6 Trafalgar Square | Nashua, NH
higher end space, which pushes the average rate • Health Dialog, a healthcare services company,
upward. The bump in rent will likely reverse and steadily 88.2% renewed in its longtime home in Q4 at Bedford
decline if the market sees little or no absorption over Nashua
90.0% Top Lease Transactions Farms in Bedford, consolidating its footprint into
87.1%
the next year. 33,000 SF.
87.8% 2020 was highlighted with a few large transactions,
Even with the daily media reminder that companies are including a few companies expanding in the market, • In Manchester, AutoDesk renewed its 29,380 SF at
82.0%
readily adopting the “work from home” (WFH) business 82.8%
and other companies renewing in their space. 100 Commercial Street in the millyard.
Salem
model due to the pandemic, it remains to be seen what 81.2%
80.5% • The largest transaction this year was Wheelabrator 2021 will likely see an uptick in transactions as
direction occupiers in NH will take. Some announced
Technologies signing a lease for 50,300 SF in companies that put off decisions due to the pandemic
plans to potentially downsize their offices and stick with
92.2% Newington. It was the first to sign a lease at the should start making decisions.
a WFH platform due to their investment in technology 96.5%
Portsmouth newly constructed 72,000 SF timber frame building
and their ability to pull from a wider employee pool. 94.9%
92.3% at 90 Arboretum Drive. Wheelabrator outgrew its Availabilities
Others have announced a hybrid model, splitting time
space next door and will relocate its corporate
in the office and home, allowing office space to stay as In 2019, we spoke about companies downsizing their
97.0% headquarters at the beginning of 2021.
is – at least for now. We have also heard about 93.5% footprint, but keeping their workforce. This was true
Dover
companies pulling out of big cities and into several 93.5% again this year, but for a different reason - mainly
suburban locations as they follow employee migration. 94.2%
due to consolidating or having employees work from
These trends will have different impacts on the market, 75% 80% 85% 90% 95% 100% home. Some of the large availabilities that came to
but we believe that the WFH approach will start to affect the market included:
occupancy rates in 2021. Q1 Q2 Q3 Q4
• The 99,372 SF Class A office building 2 College Park
Top Investment Deals • The multitenanted, 120,600 SF Class B building at Drive in Hooksett hit the market at the beginning of
14 Central Park Drive in Hooksett sold for $12.23 the year for sale. Cigna Health Care, the tenant and
Although the office market was paused this year due million ($101.41 PSF) to local investors. The building
to the pandemic, local investors were active in the current owner, plans on vacating the building or
reached full occupancy Q3 2019 with a 55,000 SF 90 Arboretum Drive | Portsmouth, NH downsizing to about 25%.
market. Some top investment sales that occurred in lease by Merchants Fleet, which joined United
2020 included: Healthcare. • Southern NH University is consolidating its
• BAE Systems subleased space at 25 Manchester
Street in 2019 and in March, negotiated a direct footprint into its newly renovated 190,770 SF
• The multitenanted 17,000 SF Class B office building building in the millyard, along with a new six-story
lease for the space. BAE now occupies over 48,000
at 4 Technology Drive in Londonderry sold for $2.2 parking garage. This move is freeing up about
SF in the building.
million ($123.35 PSF) to a local investor. 93,000 SF of downtown space and 82,000 SF of
• The 71,406 SF building at 145 Maplewood Avenue millyard space in Manchester.
• Whiting Building LLC, added to its Nashua portfolio
is under construction and already has a
by purchasing 138-144 Main Street. The 43,336 SF • HarborOne moved into 14,700 SF at 650 Elm Street,
commitment for the second and third floor.
multitenanted building sold for $2.9M ($66.92 PSF). freeing up 18,000 SF on multiple floors at Chase
Heinemann Publishing, already in Portsmouth, has
outgrown its downtown mill space and has Block in downtown Manchester. While the Chase
• Cameron Real Estate sold the Class B office building
preleased roughly 37,800 SF in the new building. Block is currently up for sale, the building may be
14 Central Park Drive | Hooksett, NH at 9 Executive Drive in Merrimack for $2.4 million
The building is expected to be delivered early 2021 converted to residential.
($87.79 PSF) to an LLC associated with Melanson, a
2 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 3
Top Investment Deals • RJ Schinner leased 91,100 SF at 36 Executive Drive
in Hudson, bringing the building to full occupancy.
Another sign of strength in the market is the amount
Industrial Market of investment sales that occurred this year. Some of
the top investment sales included:
This location will be the company’s first NH location
and 18th branch across the US.
• The Kane Company and DRA Advisors, LLC teamed
up to purchase the Manchester Logistics Center for
$32.0 million in July. 333 Harvey Road in Manchester,
2020 brought many uncertainties due to the pandemic, Quarterly Absorption a 723,875± SF warehouse/distribution facility, is
but the industrial market stayed strong. This is not the home of True Value Distribution.
surprising in some categories, especially warehouse/ 91.7% 333 Harvey Road | Manchester, NH
distribution due to the increase in e-commerce. 91.9%
Concord
93.6%
One sign of strength was the positive absorption of 93.0%
188,702± SF year-over-year, causing the occupancy rate 36 Executive Drive | Hudson, NH
to increase by 0.3%. This brought the overall rate to 96.4%
96.9%
• QuayPharma, a UK-based company, opened its
95.6%, leaving little available space on the market. Manchester
97.5% first NH location leasing the entire 54,458 SF flex/
96.9% R&D building at 8 Executive Drive in Hudson.
Yet, the demand for space did not slow down, especially
This pharmaceutical development and clinical
towards the end of the year. This, and the lack of 93.0% manufacturing plant is the company’s second US
availability, drove rents up by $0.51 PSF (7.2%) ending 93.0%
Nashua
93.1% location.
the year at $7.05 NNN.
93.7% • The investment group, Angelo Gordon, purchased
• The former Sam’s Club at 131 Ledge Road in
This has resulted in more companies constructing new the 339,700 SF warehouse/distribution building at
92.3% Seabrook was recently renovated. It reached full
facilities, renovating, or expanding in existing buildings. 150 Ocean Road in Greendland for $24.4 million in
92.7% occupancy with two MA companies leasing portions
Some top construction projects completed this year Salem
93.0% November. The property sold as part of a portfolio
of the building. Spinnaker Management Group, of
included: 93.8% sale with three MA properties.
Haverhill, leased about 87,760 SF and Bradford &
• Prime Source Foods opened its new 105,000 SF 98.1% • The 221,995 SF warehouse/distribution facility at 7 Bigelow, of Newburyport, leased 48,250 SF.
facility in Londonderry during Q2. The company will Portsmouth
97.9% Amarosa Drive in Rochester was purchased by the
98.4% These are only some of the top 2020 deals and
be relocating from its Hooksett location into 40,000 99.1% NH Business Finance Authority for $12.1 million in
industrial space continues to be a hot commodity
SF of warehouse space (including refrigerated and December. SIG Sauer leased the facility for 10 years
moving in 2021.
frozen sections), an 18,000 SF refrigerated dock, 93.7% and plans to purchase the building at the end of its
8,000 SF of processing space, and a 3,000 SF test Dover
92.0% lease. This facility is in addition to its Pease/
kitchen/presentation room.
92.5%
Portsmouth and Exeter production facilities. Availabilities
94.5%
Even with the large amount of space being leased
75% 80% 85% 90% 95% 100% this quarter, only 188,700 SF was absorbed in 2020.
Q1 Q2 Q3 Q4 This was due to some space coming to the market.
• At the beginning of the year, Aclara announced it
• Stonewall Kitchen completed an 81,500 SF
will increase production at its 553,409 SF facility in
expansion in Dover, NH. The company now occupies
Somersworth. Then in Q2, the property was
152,384 SF in its warehouse/distribution facility,
brought to market for sale as an owner-user
with the ability to still expand.
opportunity. This vacancy caused a large shift in
• Unitil completed construction on its regional 7 Amarosa Drive | Rochester, NH
occupancy in the Dover submarket.
Prime Source Foods | Londonderry, NH
operations facility in Exeter at the end of the year.
• True Value downsized its footprint at 333 Harvey
• Bellevance Beverages completed construction on The 54,000 SF state-of-the-art facility will be home
to many branches of the company in one centralized
Top Lease Transactions Road in Londonderry, freeing up 182,000 SF of
its 142,000 SF distribution center in Londonderry,
warehouse/distribution space. This high bay space
NH. This new site will consolidate the company’s location. The industrial market saw companies relocate or hit the market at a higher than average lease rate
operations with office and warehouse space into expand into NH this year, especially in the second
• LSNE Contract Manufacturing completed its 26,000 in Q3, causing asking rents to increase.
one building and one location. A special feature of half of the year. Some of the top leases included:
SF expansion in Bedford. The company increased
the building is its rooftop solar array. With roughly • With Bellevance Beverages opening its new facility
capacity and flexibility adding a clean room with a • UPS relocated to 102,131 SF at 8 Marin Way in
115,000 SF of the roof covered, this is one of the in Londonderry, its former 95,600 SF location in
new automated production line. Stratham. The company leased the entire
largest arrays in NH. Hooksett became available in Q3.
warehouse/distribution building at the start of Q3.
4 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 5
Job Market
The unemployment rate in New Hampshire entering
2020 was at 2.6%, but due to the pandemic the rates 20.0%
NH Unemployment Rate
Submarket Summaries
spiked to 17.1% in April. Some people lost their jobs,
while many were furloughed. 17.5%
The good news is that this high unemployment rate did
not last long and ended 2020 at 4.0%. At this lower rate, 15.0%
certain businesses are still struggling to find employees.
12.5%
This is especially true in the construction, technology,
and manufacturing industries.
10.0%
Some economists believe that there could be an
increase in unemployment claims over the winter 7.5%
months carrying over to 2021. Industries like restaurants
and hospitality are looking forward to the spring 5.0%
months attracting more tourists and outdoor eating.
2.5%
As companies bring back their workforce and/or look to
expand, one of the major concerns is the decrease in 0.0%
the employee pool year-over-year. In December 2019, Dec‘19 Feb‘20 Apr‘20 Jun’20 Aug‘20 Oct’20 Dec’20
the NH labor force was at 776,580 according to the NH
Employment Security. A year later, there was a 3.6% decrease, ending December 2020 with 749,270 in the labor
force.
Although it will take some time for the state to reach its pre-COVID unemployment rate levels, the decrease in the
labor force may not cause a problem in the future due to an increase in domestic migration. The amount of
migration to NH has continued to increase, especially with young adults. In the past five years, the net annual
migration of those in their 30s has doubled compared to previous years. If this age group continues to migrate to
the state, not only will it have an immediate impact on the labor force, but it will also help long-term as this age
group continues to have families.
Percent of Temporary and Permanent Job Losses, and Discouraged Workers
Unemployed, On Layoff Unemployed, Permanent Job Loss Discouraged Workers*
100% 3,000
2,500
80%
2,000
60%
1,500
40%
1,000
20% 500
0% 0
Jan’20 Feb‘20 Mar’20 Apr‘20 May’20 Jun’20 Jul’20 Aug‘20 Sep’20 Oct’20 Nov’20
*Discouraged workers are a subset of people marginally attached to the labor force, and also part of the broader group of people not in the labor force. They are not classified as
unemployed because they have not actively searched for work in the last 4 weeks.
Graph sources: NH Employment Security & US Bureau of Labor Statistics
6 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire
Outlook Quarterly Absorption
Concord Submarket The pandemic is still causing many uncertainties
in the state, particularly when looking at the office
300,000
250,000
market. That said, with little office availabilities, it
is likely the submarket will see little to no positive 200,000
change over the next year.
Office Overview Summary Statistics Office Industrial 150,000
The occupancy rates in the Concord submarket The industrial market has the lowest occupancy
Building Inventory 2,552,425 5,793,350 rates and rents in the state, with just 498,979 SF of 100,000
dropped this year by 1.8%. With over 44,680 SF
of Class B space hitting the market at higher Net Absorption (46,029) 28,869 product on the market. Although this is less space 50,000
than the average rents, it makes sense that the than some submarkets, companies will continue
overall rents jumped by $1.26 PSF, or 6.8%. Occupancy Rate 92.3% 93.0% to be attracted to the area given rents are below -
The largest sale of the year occurred in Q1 $18.30 $6.48 the state average.
Average Asking Rent
2020 at 14 Central Park Drive in Hooksett. The MG NNN (50,000)
multitenanted, 120,600 SF Class B building,
(100,000)
sold for $12.23 million ($101.41 PSF) to local
investors. The building had reached full SF Tracked in Submarket (150,000)
occupancy Q3 2019 with a 55,000 SF lease by
Merchants Fleet, which joined United Manufacturing (200,000)
Healthcare. Warehouse/distribution Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
Flex/R&D 8.3M Office Industrial
Class A
SF
Industrial Overview Class B
Class C
The industrial market’s occupancy rate climbed Notable Lease Transactions
by 0.5%, absorbing 28,869 SF over the year.
Address Lease Type SF Tenant Property Type
The largest increases in occupancy were in the
manufacturing and flex/R&D categories. With 77 Merrimack Street
Relet 36,000 Company C Manufacturing
the high occupancy rate and continued Construction Projects Concord, NH
demand for industrial space, rents had a 814 Route 3A
Over the past couple of years, there have only been a Relet 17,500 Kellintine Holdings, LLC Warehouse/distribution
dramatic increase of 8.5%, or $0.55 PSF. Bow, NH
couple of construction projects. In 2020, one of the
The top industrial sales in 2020 involved largest projects in the submarket was proposed to 171 Londonderry Turnpike Neurodevelopmental
Relet 14,400 Class B office
multiple buildings and companies during the break ground in Hooksett. The project is still seeking Hooksett, NH Institute of NH
first quarter. Sanel Auto Parts sold its 93,289 approvals, but if granted, the 500,000 SF “Granite 2 Pillsbury Street
Relet 12,069 E-Closing Class B office
SF warehouse/distribution facility, at 129 Woods” will be the largest distribution center in the Concord, NH
Manchester Street in Concord, to Banks submarket. 41 Terrill Park Drive
Chevrolet for $6.5 million ($69.68 PSF). Sanel Relet 9,600 Sbat Fintess, LLC Flex/R&D
Concord, NH
then downsized, purchasing a 42,598 SF
warehouse/distribution building at 102 Old
Turnpike Road in Concord for $3.2 million Notable Sale Transactions
($75.12 PSF). That building was sold to Sanel by
Company C, which downsized after opening a Address Building SF Price Buyer Property Type
larger downtown Concord retail space and 14 Central Park Drive $12,230,000 / 14 Central Park LLC
120,600 Class B office
temporarily leasing a smaller space at 92 Old Hooksett, NH $101.41 PSF Investor
Turnpike Road. During Q3, Company C leased 129 Manchester Street $6,500,000 / Daval Realty Associates LP
36,000 SF at 77 Merrimack Street in Concord. 93,289 Warehouse/distribution
Concord, NH $69.68 PSF Owner-user
102 Old Turnpike Road $3,200,000 / Segal Family Acquisitions LLC
42,598 Warehouse/distribution
Granite Woods Concept Plan | Hooksett, NH Concord, NH $75.12 PSF Owner-user
25 Henniker Street $1,500,000 / 3G Eagle LLC
26,678 Manufacturing
Concord, NH $75.87 PSF Investor
161 River Road $1,500,000 / 164C Dunklee LLC
29,214 Manufacturing
Bow, NH $51.35 PSF Investor
8 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 9
Outlook Quarterly Absorption
Manchester Submarket The Manchester submarket has not yet shown
what the impact of the pandemic will mean to the
300,000
250,000
office market. There has been a large amount of
millyard and downtown Manchester space that 200,000
has become available, and with city amenities this
Office Overview Summary Statistics Office Industrial should attract new companies to the area.
150,000
The Manchester submarket’s occupancy rate Building Inventory 8,050,748 15,712,546 100,000
fell by 0.9% year-over-year, leading to a The industrial market on the other hand has the
negative absorption of 34,860 SF. Although a Net Absorption (34,865) 16,963 second highest occupancy rate in the state. With 50,000
negative shift in the market, it was not the Manchester-Boston Regional Airport close by,
substantial. The Class A sector remained Occupancy Rate 91.3% 97.2% easy highway access, and reasonable rents, -
relatively strong absorbing 40,288 SF over the $19.43 $7.09 industrial space does not sit around very long.
year, causing a 0.2% increase in the occupancy Average Asking Rent
MG NNN (50,000)
rate. The industrial market will also continue to be a
The small change in the occupancy rate does focus for investors, with quality tenants and a lack (100,000)
not mean the submarket did not see activity. of inventory continuing to drive rents up.
SF Tracked in Submarket (150,000)
Many tenants decided to renew in their current
locations, especially downtown and in the Manufacturing (200,000)
millyard. Warehouse/distribution Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
Average rents in the submarket rose by $0.59 Flex/R&D 23.8M Office Industrial
Class A
PSF, or 3.04%. The largest increase was in the
Class B SF
Class A submarket, mostly due to the vacancy
Class C
at a newly constructed building in Bedford, Notable Lease Transactions
NH.
Address Lease Type SF Tenant Property Type
1000 Elm Street
Renewal 38,394 Sheehan Phinney Class A office
Industrial Overview Construction Projects Manchester, NH
The industrial market saw little change year- Construction in the Manchester submarket increased 7 Perimeter Road
Renewal 33,600 USPS Flex/R&D
over-year, with only a 0.16% increase in the in 2020. The office market added a 44,000 SF Class A Manchester, NH
occupancy rate. With the submarket stable, addition at 35 Constitution Drive in Bedford. 6 Bedford Farms Drive
Renewal 33,000 Health Dialog Class A office
but tight, rents rose by $0.69 PSF, or 9.7%. Bedford, NH
35 Constitution Drive | Bedford, NH 100 Commercial Street
The largest change in the occupancy rate was Renewal 29,376 AutoDesk, Inc Class B office
in the flex/R&D sector with a 2.7% increase. Manchester, NH
This goes hand-in-hand with the $2.63 PSF, or 15 Liberty Drive
Sublease 26,460 AutoStore Warehouse/distribution
27.2% increase in rents. As product comes Londonderry, NH
back to the market, asking rents are being set
above current market rates.
Notable Sale Transactions
Like many other submarkets, investors were
focused on the industrial market. The largest Address Building SF Price Buyer Property Type
transaction to occur this year was the $32 Construction on the industrial side was all owner- 333 Harvey Road $32,000,000 / G&I X Harvey LLC
million ($44.21 PSF) sale of 333 Harvey Road in user, totaling over 266,000 SF. TRM Microwave added Manchester, NH
723,875
$44.21 PSF Investor
Warehouse/distribution
Manchester. The Kane Company and DRA a 13,370 SF addition to its existing building. In 562 Mammoth Road $5,185,000 / Holton LLC
Advisors LLC teamed up to buy the Manchester Londonderry, Prime Source Foods relocated from 76,084 Manufacturing
Londonderry, NH $68.15 PSF Investor
Logistics Center, a 723,875 SF warehouse/ Hooksett and built a new 105,220 SF facility and
distribution building that has been occupied 440 Harvey Road $3,750,000 / CJD 603, LLC
Bellevance Beverages opened a brand new 147,760 Manchester, NH
30,444
$123.18 PSF Investor
Warehouse/distribution
by True Value for many years. SF distribution building.
305 Massabesic Street $2,600,000 / T.A.D., LLC
40,582 Manufacturing
Manchester, NH $64.07 PSF Investor
1037 -1045 Elm Street $2,400,000 / Cambridge Trust Company
46,994 Class C office
Manchester, NH $51.35 PSF Foreclosure
10 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 11
Outlook Quarterly Absorption
Nashua Submarket The Nashua submarket’s office category has the
second lowest occupancy rate in the state. That
200,000
may be the reason there has been a push for 150,000
some office space to be converted to life science.
The John J. Flatley Company broke ground on a
Office Overview Summary Statistics Office Industrial 38,000 SF “micro-tech” facility and has discussed
100,000
The occupancy rate in the Nashua submarket Building Inventory 5,328,399 19,080,787
turning some of its other vacant office space into
had one of the largest negative shifts in 2020. lab space. The target market for this type of 50,000
The submarket had a negative absorption of Net Absorption (141,082) 16,963 development are companies expanding out of
141,082 SF, dropping the occupancy rate by Boston and its suburbs, searching for more
2.6%. The biggest shift came in the Class C Occupancy Rate 87.8% 93.7% competitive options for this in demand space. If -
category, dropping by 22.0%. This was mostly $17.05 $6.76 life science companies start expanding to NH,
due to large spaces hitting the market at 1 Wall Average Asking Rent then there may be a significant change in
MG NNN (50,000)
Street in Hudson and 55 Franklin Street in occupancy over the next couple of years.
Nashua.
The industrial market continued to attract a
The Nashua submarket was the only one to SF Tracked in Submarket variety of out-of-state companies this year, and
(100,000)
see its rents decrease year-over-year. While with over 1.3 million SF available, this submarket
not a large change, rents did decrease by $0.17 Manufacturing will keep attracting more companies. (150,000)
PSF, or 1.0%. Warehouse/distribution Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
Unlike other submarkets, most of the office Flex/R&D 24.4M Office Industrial
Class A
transactions that occurred over the quarter
Class B SF
were companies leasing new space.
Class C
Notable Lease Transactions
Industrial Overview Address Lease Type SF Tenant Property Type
The industrial category saw a 0.36% increase in 36 Executive Drive
Relet 91,137 RJ Schinner Warehouse/distribution
the occupancy rate year-over-year, with a net Construction Projects Hudson, NH
absorption of 68,096 SF. The warehouse/ The largest construction project in the Nashua 8 Executive Drive
Relet 54,458 QuayPharma Flex/R&D
distribution sector saw the largest shift in submarket is the proposed Hudson Logistics Center. Hudson, NH
occupancy absorbing over 116,000 SF. The The former golf course site is still seeking approvals 25 Manchester Street
Relet 48,749 BAE Systems Class B office
majority of this space was from the lease of for the 2.6 million SF warehouse/distribution Merrimack, NH
91,000 SF by RJ Schinner at 36 Executive Drive facilities. Amazon Fulfillment wants to occupy two of 16 Columbia Drive
in Hudson, bringing the building to full Relet 10,000 Micro Precision Calibration Class B office
the buildings, a total of 2 million SF, with the final Amherst, NH
occupancy. building available for third-party occupancy. 100 Perimeter Road Granite State Early
Relet 10,000 Class B office
Rents in the submarket also climbed year- Nashua, NH Learning Center
over-year by $0.62 PSF, or 9.2%. Rents in the
warehouse/distribution category rose by
$0.93 PSF, or 13.7%, while the manufacturing Notable Sale Transactions
category increased by $1.96 PSF, or 30.2%. The
Address Building SF Price Buyer Property Type
large shift in the manufacturing category was
due to much needed space coming to market. 476 Charles Bancroft Hwy
36,000
$6,750,000 / GAB Litchfield, LLC
Warehouse/distribution
Litchfield, NH $187.50 PSF Investor
The industrial market continued to attract both
out-of-state and local investors. The majority 120 Northwest Boulevard $6,700,000 / Nashua Properties, LLC
78,452 Warehouse/distribution
Nashua, NH $85.40 PSF Investor
of the top sales came from the warehouse/
distribution sector. 22 Charron Avenue $4,050,000 / Rhino 22 Charron Investors LLC
52,326 Warehouse/distribution
Hudson Logistics Center Concept Plan | Hudson, NH Nashua, NH $77.40 PSF Investor
23 Dumaine Avenue $4,000,000 / 23 Dumaine LLC
70,560 Warehouse/distribution
Nashua, NH $56.69 PSF Investor
10 Flagstone Drive $3,000,000 / GBHM Holdings LLC
25,400 Manufacturing
Hudson, NH $118.11 PSF Investor
12 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 13
Outlook Quarterly Absorption
Salem Submarket The Salem submarket started 2020 with the lowest
office occupancy rate in the state. The lack of
150,000
transactions over the course of the year did 100,000
nothing to change its place. However, if the Tuscan
Village moves forward with the life science
Office Overview component of the project, it will hopefully attract 50,000
Summary Statistics Office Industrial
supporting companies to the area as well. We will
The office market had a negative absorption of Building Inventory 1,111,185 5,310,953 monitor this as Tuscan Village continues to build
23,690 SF, creating a drop in the occupancy its office, medical, and life science components. -
rate of 2.1%. The largest change was in the Net Absorption (23,694) (18,483)
Class B submarket with 12,000 SF hitting the The Salem industrial market has a high occupancy
(50,000)
market, causing a 2.5% drop in the occupancy Occupancy Rate 80.5% 93.8% rate of 93.1%, yet it is the lowest rate in the
rate. $21.06 $8.77 submarkets we track. With only a few large blocks
Average Asking Rent of space remaining in the market, there may not
Salem was the only submarket to see no MG NNN (100,000)
change in overall rents year-over-year. be a dramatic increase in occupancy rates, even
Specifically, only the Class A category showed as tenants enter the market and take over the
an increase in rent. This $0.77 PSF (3.3%) bump available smaller spaces. Similar to the office (150,000)
SF Tracked in Submarket market, this could shift as the Tuscan Village
was due to the addition of approximately
41,000 SF at above average asking rates. development progresses.
Manufacturing (200,000)
Warehouse/distribution Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
Flex/R&D 6.4M Office Industrial
Industrial Overview Class A
SF
Class B
The Salem submarket was the only market to Class C
see a negative change in its occupancy rate. Notable Lease Transactions
With a negative absorption of 18,483 SF, the
Address Lease Type SF Tenant Property Type
occupancy rate dropped by 0.4% year-over-
year. There continues to be no available space 32 Hampshire Road
in the manufacturing category, but the Construction Projects Relet 40,954 New England Finish Systems, LLC Flex/R&D
Salem, NH
warehouse/distribution category had a 1.8% The biggest construction topic in the Salem submarket
drop in its occupancy rate. 19 Keewaydin Drive
continues to be Tuscan Village. With the retail and Renewal 30,000 EIT, LLC Class B office
Salem, NH
Even though there was a dip in the occupancy residential development underway, a portion of the
rate, rents rose this year by $0.41 PSF, or 4.7%. planned office component may pivot to life science. 144-146 Main Street
Relet 13,000 New England Auto & Boat Storage Warehouse/distribution
The warehouse/distribution category had the This could be an ideal move as the office market Plaistow, NH
largest shift, increasing by $0.63 PSF (7.3%). slowed down this year and many life science 7 Raymond Avenue
companies are looking to grow outside of the greater Relet 12,569 G5 International Warehouse/distribution
The top industrial sale in the submarket was Salem, NH
the long-time home of Wakefield-Vette at 33 Boston area. According to the Boston Colliers office,
Bridge Street in Pelham, NH. The 171,200 SF more than 2.5 million SF of life science space has
Notable Sale Transactions
manufacturing building was purchased for come to the suburbs in recent years.
$8.45 million ($49.37 PSF) by a local investor. Address Building SF Price Buyer Property Type
The parent company of Wakefield-Vetter, The Tuscan Village Concept | Salem, NH 33 Bridge Street $8,450,000 / Bridge 33, LLC
Heico Company, purchased a 78,450 SF in the Pelham, NH
171,166
$49.37 PSF Investor
Manufacturing
Nashua submarket at the end of the year and
is working on its fit-up. 8 Tinkham Avenue
51,000
$3,350,000 / Innovative Flex Space, LLC
Flex/R&D
Derry, NH $65.69 PSF Investor
12 Manor Parkway $4,300,000 / CP BA 12 Manor Parkway, LLC
31,844 Flex/R&D
Salem, NH $135.03 PSF Investor
13 Industrial Way $3,250,000 / Pace Analytical Life Science, LLC
31,200 Warehouse/distribution
Salem, NH $104.17 PSF Owner-user
1 Northwestern Drive $2,000,000 / Carpenter & Patterson, Inc.
20,594 Flex/R&D
Salem, NH $97.17 PSF Investor
14 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 15
Outlook Quarterly Absorption
Portsmouth Submarket The office and industrial occupancy rates in the
Portsmouth submarket remain among the highest
200,000
in the state. One contributing factor for this is
likely due to the area being seen as a highly 150,000
desirable seacoast location.
Office Overview Summary Statistics Office Industrial Over the course of 2020, several companies 100,000
The Portsmouth submarket’s office category Building Inventory 4,541,651 13,287,032
vacated their satellite locations, yet most space
saw the largest drop in its occupancy rate this was quickly backfilled. The amenities in the
year, falling by 4.3%. The Class A and B Net Absorption (197,729) 66,620 submarket continue to attract companies, 50,000
categories saw an increase of availabilities, particularly when high class space becomes
causing a negative absorption of 197,700 SF. Occupancy Rate 92.3% 99.1% available.
The largest drop came in the Class A category $24.92 $8.46
Average Asking Rent With an industrial occupancy rate of 99.1%, there -
with about a 6.3% dip, leading to a $1.08 PSF MG NNN
is virtually nowhere for new tenants to go or for
(4.0%) drop in rents. current tenants to expand. This could increase
While Class A rents dropped, the remaining new construction or encourage companies to get (50,000)
categories saw increases in rent. Overall rents SF Tracked in Submarket creative with adaptive reuse of existing buildings
rose by $0.68 PSF (2.7%), with the largest shift in the submarket.
Manufacturing
in the Class B category. (100,000)
Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
Warehouse/distribution
Flex/R&D
Class A
17.8M Office Industrial
Industrial Overview Class B SF
The Portsmouth submarket had a positive Class C
absorption of 66,620 SF, bringing its occupancy Notable Lease Transactions
rate up by 0.7%. The market is at full functional Address Lease Type SF Tenant Property Type
capacity with an occupancy rate of 99.1% at
the end of 2020. 8 Marin Way
Relet 102,131 UPS Warehouse/distribution
Construction Projects Stratham, NH
Overall rents were unchanged with only a
$0.04 PSF (0.4%) drop. The flex/R&D category Construction on the Seacoast is growing with both 131 Ledge Road
Relet 87,760 Spinnaker Management Group Warehouse/distribution
owner-user and spec projects. Two Class A office projects Seabrook, NH
had the biggest change, with a $1.52 PSF
started during 2020 in Portsmouth. The 72,000 SF timber- 90 Arboretum Drive
increase, or 16.5%. This change was due to New 50,300 Wheelabrator Technologies Inc Class A office
frame building on Arboretum Drive completed its first Portsmouth
high class space becoming available at 300
phase of construction, and Wheelabrator Technologies,
Constitution Drive. 131 Ledge Road
Relet 48,256 Bradford & Bigelow Warehouse/distribution
a neighboring tenant, will relocate into about 70% of the Seabrook, NH
The largest leases to occur this year occurred building. Downtown, a new 71,400 SF building on
in the warehouse/distribution category with Maplewood Avenue is set to be completed by early 2021 22 Industrial Drive
Relet 45,436 manroland Goss web systems Flex/R&D
Exeter, NH
UPS leasing 102,000 SF in Stratham and 87,760 with two floors preleased.
SF being taken by Spinnaker Management Owner-user industrial construction continued in 2020.
Group in Seabrook. Galvion, a new tenant to the market, completed Notable Sale Transactions
The largest sale to occur in the submarket was construction and opened its new 47,000 SF headquarters
at Pease Tradeport and Unitil completed its 54,000 SF Address Building SF Price Buyer Property Type
Angelo Gordon, an investment firm, purchasing
150 Ocean Road in Greenland. The 339,700 SF headquarters in Exeter, relocating from Hampton.
150 Ocean Boulevard $29,400,000 / EIP 150 Ocean Road LLC
339,777 Warehouse/distribution
warehouse building sold for $29.4 million Greenland, NH $86.52 PSF Investor
($86.53 PSF), expanding the company’s NH 275 Constitution Avenue $5,675,000 / ASE Real Estate LLC
portfolio. This property sold as part of a $151 76,000 Warehouse/distribution
Portsmouth, NH $74.67 PSF Owner-user
million ($90.45 PSF) portfolio sale, which 35 Woodworkers Way $3,000,000 / Marco Rubber Real Estate Holdings
included three MA properties for a total of 1.7 36,800 Manufacturing
Seabrook, NH $81.52 PSF Owner-user
million SF.
200 West Road $2,900,000 / Cirrus Systems
31,100 Manufacturing
Portsmouth, NH $ 93.22 PSF Owner-user
112 Heritage Avenue $2,500,000 / FW Webb
20,000 Warehouse/distribution
Unitil Energy | Exeter, NH Portsmouth, NH $125.00 PSF Owner-user
16 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 17Outlook Quarterly Absorption
Dover Submarket The Dover office market is one of the smallest
markets we track, but also has the highest
120,000
100,000
occupancy. With a high occupancy rate of 94.2%
at the end of 2020, we will continue to see little 80,000
increase in the occupancy rate.
Office Overview Summary Statistics Office Industrial Given that the Portsmouth industrial occupancy
60,000
Unlike other submarkets in New Hampshire, Building Inventory 1,555,477 8,592,167
rate is 99.1%, the Dover submarket may see a 40,000
the Dover submarket saw a positive absorption trickle effect with businesses migrating to this
in 2020. This positive increase of 25,800 SF, led Net Absorption (10,574) 26,637 adjacent market. With over 500,000 SF of available 20,000
to the occupancy rate climbing by 1.7%, ending space in the submarket, this could be a solution
the year at 94.2%. The largest shift was in the Occupancy Rate 94.2% 94.5% for businesses on the seacoast. Unlike the -
Class B category, with a jump of 3.7%. $12.05 $6.95 Portsmouth submarket, there is more vacant land
Average Asking Rent available for ground up development. This land
Rents on the other hand saw practically no MG NNN (20,000)
change, increasing by $0.03 (0.3%). The biggest may continue to attract companies to the Dover
change came in the Class C category, which submarket, as some of the available space has (40,000)
reached obsolescence. There are a number of
reached full occupancy at the end of 2020. SF Tracked in Submarket new facilities that have been built or are under (60,000)
construction in Rochester, including LDI Solutions,
Manufacturing (80,000)
Prep Partners, Pella Windows, and Intec
Industrial Overview Warehouse/distribution Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20
The occupancy rate in the industrial market
Flex/R&D
Class A
10.1M Automation.
Office Industrial
increased by 0.4% year-over-year, ending the
Class B SF
year at 94.5%. The increase was due to 26,637 Class C
SF being absorbed this year, specifically in the Notable Lease Transactions
warehouse/distribution category.
Address Lease Type SF Tenant Property Type
Although there was only a 1.0% increase in the
occupancy rate in the warehouse/distribution 17 Stonewall Drive
Construction Projects Renewal 152,384 Stonewall Kitchen Warehouse/distribution
category, rents jumped by $0.37 PSF, or 5.0%. Dover, NH
This shift was due to a large building being A major project that occurred in the Dover submarket
13 Buzzell Road
removed from the market in Rochester which was the 81,500 SF expansion at Stonewall Kitchen in Relet 30,000 Portland Glass Warehouse/distribution
Lee, NH
was significantly below the average asking Dover, NH. The company now occupies 152,384 SF in
rate. its warehouse/distribution facility, with the ability to 187 Crosby Road Home Fashions Distributor/
Relet 28,800 Warehouse/distribution
still expand. Dover, NH Great Bay Home Fashions
The largest sale of the year in the submarket
was the unique transaction with NH Business In addition to the SIG Sauer project in Rochester, Prep 27 Production Drive
Finance Authority purchasing the former Relet 17,659 Advanced Automation Manufacturing
Partners Development is building a 150,000 SF Dover, NH
Stonewall Kitchen facility on Amarosa Drive in warehouse/distribution building near the Rochester
Rochester. The 221,995 SF building sold for Airport. The company plans on occupying 50,000 SF of
$12.1 million ($54.51 PSF) and will be leased to the building and are marketing the remaining 100,000 Notable Sale Transactions
SIG Sauer and eventually purchased at the end SF for lease. Additionally in Rochester, Pella Windows
of its lease term. The company will be relocating Address Building SF Price Buyer Property Type
broke ground on a 20,000 SF facility and Intec
its Dover operations as it expands into this Automation is building a 30,000 SF facility. NH Business Finance Authority/
7 Amarosa Drive $12,100,000 /
site. SIG will continue to operate out of its 221,995 SIG Sauer Warehouse/distribution
Rochester, NH $54.51 PSF
other locations. Owner-user
Index Packaging bought the former Fosters 27 Production Drive $4,600,000 / Sarnia Properties, Inc.
52,224 Manufacturing
Daily Democrat building in Dover for $3.2 Dover, NH $88.08 PSF Investor
million ($70.58 PSF). The abutting 20 acres was
a large draw for the company, giving them the 150 Venture Drive
45,338
$3,200,000 / Index Packaging
Manufacturing
ability to expand on-site in the future. Dover, NH $70.58 PSF Owner-user
140 Crosby Road $1,600,000 / 140 Crosby Road, LLC
35,000 Manufacturing
Stonewall Kitchen | Dover, NH Dover, NH $45.71 PSF Investor
18 2020 Market Review & 2021 Outlook | New Hampshire 2020 Market Review & 2021 Outlook | New Hampshire 19$16.1 M 15 years
2020
Our Research Highlights
17 Story St, Cambridge, MA Beach Plum
At Colliers, we internally track almost 23.1M SF of office space and more than 67.8M SF of industrial space 19,648± SF multifamily 7,215± SF new construction retail
in buildings and condominiums 10,000+ SF across six New Hampshire submarkets. First Cambirdge Capital, LLC Tuscan Village, Salem, NH
With each new year, our brokerage teams closely evaluate their markets and critically assess the use,
quality, and amenities of each property. This thorough reevaluation led to a recategorization of a portion
of both the office and industrial markets.
$10.4 M 10 years
1.175M
Submarket Breakdown total SF
sold/leased
Concord Submarket Salem Submarket Portsmouth Submarket
Bow Atkinson Brentwood
Concord Chester East Kingston
Hooksett Danville Epping Park Views Condos, Manchester, NH Sheehan Phinney
99 units multifamily 38,394± SF Class A office space
Pembroke Derry Exeter
Pristine Properties, LLC 1000 Elm St, Manchester, NH
Hampstead Fremont
Manchester Submarket Kingston Greenland 212
Pelham Hampton sale/lease
Auburn
Plaistow Hampton Falls transactions
Bedford $8.1 M 7+ years
Goffstown Salem Kensington
Londonderry Sandown Newfields
Manchester Windham North Hampton
Portsmouth
Dover Submarket Raymond
Nashua Submarket 944 Industrial Park Dr, Littleton, NH New England Finish Systems
Barrington Rye
Amherst
Dover Seabrook
105,100± SF manufacturing building 40,954± SF flex/R&D space $95M
Hollis California-based investor 32 Hampshire Rd, Salem, NH transactional
Durham Stratham value
Hudson
Litchfield Farmington
Merrimack Lee
$5.2 M 5 years
Milford Madbury
Nashua Milton
Newmarket
Nottingham
Rochester
Rollinsford 2M+
562 Mammoth Rd, Londonderry, NH manroland Goss web systems SF under
Somersworth 76,084± SF 45,436± SF flex/R&D space management
Holton, LLC 22 Industrial Dr, Exeter, NH
Accelerating success.
20 2020 Market Review & 2021 Outlook | New HampshireGlobal Stats Market Contact:
Kristie Russell
Research Manager
+1 603 206 9601
kristie.russell@colliers.com
$3.3B 54,000
Annualized Lease/sale
revenue transactions
$40B Managing
Assets under 2B
management square feet
Established in Comprised of
$3.3B 18,000
countries professionals
All statistics are for 2020, are in US dollars, and include affiliates.
175 Canal Street, Suite 401
Manchester, NH 03101
+1 603 623 0100
500 Market Street, Suite 9
Portsmouth, NH 03801
+1 603 433 7100
About Colliers
215 Commercial Street, Suite 202
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and
Portland, ME 04101
investment management company. With operations in 67 countries, our more
than 18,000 enterprising professionals work collaboratively to provide expert +1 207 560 8000
advice to real estate occupiers, owners and investors. For more than 25 years, our
experienced leadership with significant insider ownership has delivered compound colliers.com
annual investment returns of almost 20% for shareholders. With annualized
revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets
under management, we maximize the potential of property and accelerate the
success of our clients and our people. Colliers in New Hampshire & Maine is
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