Boston will change significantly with the introduction of driverless cars. Do you expect to own a Level 4 driverless car in the next 10 years?
According to The Real Reporter, “Level 4 cars park themselves, they don’t need nearly the space for error as humans do, and don’t need space for passengers to exit from the sides. As landlords’ see their tenants’ workers go increasingly autonomous, it may make sense to proactively create areas or structures to more efficiently offer car storage than the traditional 150 space per acre parking lot…The autonomous revolution may quickly lead to a car-share model. This could rapidly change industry parking ratios –freeing land, in some cases, for more development!”
You can read more on the real estate impact of driverless cars on The Real Reporter, here.
Millennium Partners wins the prize for the impending Winthrop Square development. The proposed tower would stand 750-feet, adding office, residential and retail space in downtown Boston.
According to the Boston Business Journal, “the New York-based development firm proposed a 750-foot, $1.02 billion ‘hybrid high-rise’ tower, with 14 stories of office space and 36 levels of residential sitting atop a 65-foot high podium space known as The Great Hall. It would also include a 14,620-square-foot startup accelerator to be developed in partnership with the city.”
You can read the full article on the BBJ, here.
Image Credit: cpexecutive
The Class B office market in Boston Financial District sees another trade: 70 Franklin Street.
“70 Franklin’s timeless architecture combines with its flexible floor plates, open office layouts and modern building systems to create one of Boston’s premier Class B buildings. As a result, the asset boasts exceptional leasing momentum with tangible upside potential in Boston’s booming Downtown district,” said [Capital Markets Vice Chairman Edward] Maher.
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Financial District Office Space in Boston
Credit: Boston Business Journal
Due to the great recession we have fewer skilled labor working in the construction trade industry and as a result that cost has increased significantly. On a sampling of construction projects, the cost of labor could account for 40 – 60 percent of the overall project cost.
According to Bizjournals, “the result is a shortage in the supply of skilled labor in the building trades, a trend that’s enabled everyone from mechanical contractors to steel manufacturers to punch their ticket when it comes to selecting the most attractive jobs at the most competitive rates. That in turn is turbo-charging the cost of construction and, in turn, a preference among developers to favor big, luxury projects to better recoup their costs and lock in attractive returns.”
Additional information is available on the BBJ’s website.
Class A office rents have experienced a 76% increase in the 2nd quarter for some of Boston Properties local assets. Combine that with reduced tenant improvement dollars and little-to-no rent concession, and the net effective cost to occupy has increased even more.
According to an article in the BBJ, “Boston Properties raised net rents by a median average of 28 percent companywide for tenants with leases starting in the second quarter. But in Boston, Cambridge and the markets along Route 128, that net rent increase shot to 76 percent.”
From the Bizjournals:
“We continue to see the Boston suburban market as having the strongest relative demand growth across our portfolio,” [Boston Properties President Doug] Linde said on the earnings call. “We have more than 400,000 square feet of leases in negotiations from a series of life science, technology and even a few financial services organizations. Leasing velocity in the Waltham, Lexington submarket has accelerated during the last few months as a result of this demand, and much of it is organic expansion.”
Credit: Boston Magazine
Roof decks are on office tenants’ list of top 10 of amenities. When thinking about your next office space, consider these 5 roof decks with amazing views, courtesy of Boston Magazine.
Boston ranks 6th nationally for office vacancy.
According to a report on the BBJ, “at 12 percent vacancy, Boston’s office market dipped by 1.2 percent year-over-year and was the sixth-tightest in the U.S., the report said. New York and Washington, D.C. ranked as the tightest office markets, each with 9.1 percent vacancy, followed by San Francisco at 10.2 percent and Seattle at 10.9 percent.”
Additional details are available on its website, here.
1 Federal Street in Boston’s Financial District
1 Federal Street is headed for the sales block by Eastdil Secured. The building is expected to trade in excess of $682 per square foot.
According to Realert, “the 38-story tower is 98% occupied, with a weighted average remaining lease term of almost seven years. The largest tenant, law firm Morgan Lewis, occupies 301,000 sf on a lease that runs until 2023. Records-management company Iron Mountain is leasing 133,000 sf until 2024. Others tenants include Credit Suisse, J.P. Morgan, Oppenheimer & Co. and U.S. Bank.”
Additional information is available on realert.
Bike rack affixed to an office building in Boston
Bikes are cool! My role as an office broker in the CBD of Boston is really that as an ambassador, historian, tour guide and advocate. How we traverse our city has changed since I moved back to Boston in 1993. Cars, buses, light rail, commuter rail and boats are very much the same as they were then, but what is different is bikes. We now have Hubway stations that rent bikes all over our city in areas ranging Black Falcon Terminal to 28 State Street. Additionally, office building owners are creating bike rack space inside and outside to accommodate the commuters that ride their own bikes.
The city of Boston needs to embrace this and continue to promote and provide safe areas for all forms of commuters and visitors.
From an article on TreeHugger.com:
New research presented by scientists at McGill University suggests that the construction of safe bike infrastructure could significantly reduce vehicle tailpipe emissions by offering potential motorists an attractive alternative to getting in their cars. Basically, it’s the “if you build it, they will come” philosophy many advocates lean on to champion bike infrastructure, backed up by scientists.
Credit: Boston Magazine
Boston is in the midst of a dramatic change of how we live, work and play within the city. The daytime and bedtime population is growing and the demand for services is far different than it was 20 years ago, but what hasn’t changed is how much we love our city and appreciate the history and culture that exists here. We are Boston and we love the quirks that makes this home.
Not all historic features and structures merit preserving, but some do. I am sure that prior to filling of what is now Back Bay was very controversial in 1857 when gravel and fill started arriving from Needham at a rate of twenty-five 35-car trains arrived every 24 hours.
With respect to the Citgo sign in Kenmore Square, Boston Magazine reports “the city’s Landmarks Commission met Tuesday night and granted the Citgo sign “pending designation” status. Next, the commission will prepare a report, and a public meeting will be held. If the commission approves its landmark status by a two-thirds vote, Mayor Marty Walsh has 15 days to approve or reject the proposal. If he rejects it, the City Council has 30 days to override his decision.”
You can read more on the status of the Citgo sign on Boston Magazine.