As rents have continued to rise and vacancy has dropped, landlords are becoming more bullish on the office market future. Spec buildings, previously considered a thing of the past due to the high cost of construction (compared to the cost of renovating an existing structure) are reemerging in the Hub’s commercial landscape with a new addition to Boston’s marine industrial park.
The Boston Business Journal reported, “Danvers-based Kavanagh Advisory Group is expected to break ground by year’s end on the first new building in six years on the eastern edge of the Hub’s Innovation District.”
Men’s clothing retailer Jos. A. Bank has moved in the retail space on the corner of Franklin Street and Arch Street in Boston’s financial district.
According to an article on the Boston Business Journal, the fashion retailer “has signed a 10-year lease for nearly 5,000 square feet at 70 Franklin St. in Boston’s Financial District.” Additional details on the space and terms of the agreement are available on the BBJ.
To view available commercial real estate listings in Boston’s financial district, follow this link.
Will Back Bay be home to another Boston Properties skyscraper? The location would be atop the John Hancock garage at Back Bay Station.
A report in the Boston Business Journal describes the proposal, “Boston Properties, owner of the John Hancock and Prudential towers, is floating a proposal for a skyscraper to be built on air rights atop its garage near Back Bay Station…a conceptual idea for a building could include office space and other mixed-uses above the parking garage at the corner of Stuart and Dartmouth streets.”
Office and work space in Boston continues to evolve to meet the needs of contemporary companies, with additional consideration given to functional atmospheric elements to complement the core layout.
Located on Boylston Street, ZeroTurnaround — a Java productivity tools maker — is one of a number of companies in Boston to design its workspace to match its progressive attitude. In a Boston Herald article about the company’s “fun” work environment, author Ira Kantor describes the company’s Back Bay HQ, “as music fills the C-shaped, 5,500-square-foot space, employees feed off that energy as they start cranking out global phone calls.”
The street scape continues to change with the scheduled demolition of 212 Stuart Street. The Back Bay office vacancy rate is at a record low at just under 5 percent, will the ownership push for office or residential?
A Boston Business Journal article quotes the Bay Village Neighborhood Association, stating, “nearly four years after the Boston Redevelopment Authority approved conversion of the shuttered Jae’s restaurant into a 10-story office building in Boston’s Theater District, the property is on track to be demolished.”
Jump over to the BBJ online to read the full report.
The scaffolding has been taken down and Restoration Hardware is scheduled to open its new Back Bay location next month at 234 Berkley Street. Having vacated 711 Boylston Street a number of years ago, Restoration Hardware is looking to not only sell sheets, towels and hardware, but the Back Bay location also hopes to offer beer and wine as part of their café.
The Boston Business Journal reports that “the California-based retailer will go before the Boston Licensing Board on Wednesday seeking a beer and wine license for a proposed 118-seat restaurant on three levels. Located in the 19th-century Boston building that once housed the New England Museum of Natural History and LouisBoston, the store is set to open next month.”
82 Devonshire St. in an iconic address in Boston as well as money managements circles worldwide. As I was walking past the building yesterday and client of mine commented on how he used to make sales calls there many years ago, I replied, I did as well. Many decisions have been made there that have guided Fidelity to the beacon of success that it is known as today. In the near future the ownership will change along with the occupants.
A Boston Business Journal article notes that the investment company, “has reportedly hired a real estate broker to market its former headquarters at 82 Devonshire St. in Boston’s Financial District for sale or lease.”
Should you worry about where your next office is located in Boston? Well, I would say no, but a Boston Business Journal editorial provides some real insight into what could happen on an extreme level. The real interesting piece of this is where do groups put data centers. Safe to say data centers are located outside these possible effect areas.
Rent growth is expected nationwide in the office sector. According to a CoStar Group Year-End 2012 report, “tenant demand for office space ended 2012 on a strong note as occupancy gains spread across a broadening array of U.S. markets, opening the door for widespread rental rate increases this year.”