After just attending the Bisnow 2nd Annual State of the Seaport District it is very clear that small business are in fact leading the recovery. Dave Greaney, president of Synergy Investment, who’s company caters to these firms, has seen an impressive upswing in new tenants gravitating downtown and specifically to the Seaport/Innovation District. Rents have risen more than 50% in the last 24 months and are expected to continue to climb.
The Boston Globe reports, “From a bread maker in Andover to an auto parts maker in New Bedford, small businesses are reporting growing demand, increasing sales, and an improving outlook.”
International Place is going to offer a steakhouse destination along the greenway in the Financial District. Who would of thought when International Place was built in 1987 that there would be a Palm restaurant where the central artery once stood?
Zagat reports, “the restaurant will take up a portion of the lobby at One International Place, an office tower whose lobby is replete in granite and marble. The 320-seat restaurant will take over the area where corner windows at Oliver Street and J.F. Fitzgerald Surface Road overlook the Rose Kennedy Greenway.”
Additional details about the Palm in Boston’s Financial District can be found on Zagat’s blog.
If you are out hunting for office space today you will get the benefit of paying more than your peers did a year earlier, combined with the privilege of having fewer options to choose from. What’s happened? The CBD of Boston is in the midst of a strong upswing across all submarkets with no sign of slowing down.
Statistics posted on the Boston Business Journal website note, “office vacancies dropped to 9.7 percent from January through March across the city’s eight submarkets, down from 12.4 percent for the same period in 2012. Citywide rents increased to $42.55 per square foot, compared to $41.68 a year ago, a two percent hike.”
The BBJ’s editorial on Boston’s first quarter market data includes additional market details.
Photo Credit: W. Marc Bernsau, Boston Business Journal
The dirt is flying in Boston. Not in the political sense, I mean actual dirt. Construction workers, largely sidelined during our economic recovery, are now seeing a resurgence. The numbers being reported don’t surpass previous heights, but it’s a great sign of things to come.
“The construction sector added nearly 8,000 jobs in the state during the past two years, with significant job gains in 2011 and 2012. Those numbers, released this month, represent a big improvement over the state Executive Office of Labor and Workforce Development’s previous estimate,” a Boston Business Journal article quotes.
Continue on to the BBJ online to read the full post.
Will the Financial District be home to a new office tower? There is some speculation that the headquarters of Fidelity will be raised to make way for new construction.
Banker & Tradesman is reporting, “the real estate arm of Boston-based Fidelity Investments is putting four Boston office properties and a small land parcel in the city’s Financial District on the shopping block. The contiguous block of assets totals 343,000 square feet of space and includes 82 and 68 Devonshire St., 19 and 15 Congress St., and the land parcel at 54 Devonshire St.”
Jobs, Jobs and more Jobs. The construction industry is in the midst of a very strong rebound from recent years. As you drive around Boston, you’ll notice the skyline littered with construction cranes from the Seaport to Back Bay; that means the once soft construction industry is on a frantic pace to keep up with the supply of new office buildings and residential communities.
A Banker & Tradesman editorial examining the economic impact of the construction boom, indicates that it has “pushed general contractors and builders across the Greater Boston region to increase their ranks with project and assistant project managers, superintendents and business development professionals.”
Will landlords in the city of Boston start construction projects without a tenant in hand? The market is significantly different than it was a few short years ago and the Seaport has evolved into a destination location.
A Bloomberg editorial paints a glowing portrait of the flourishing Boston office market: “Boston’s real estate market, often overshadowed by the skyscrapers of New York and government-fueled growth in Washington, is seeing a boom in construction as developers financed with cheap debt seek to profit from a growing workforce of educated young adults and strength in the technology and life-sciences industries. The office-vacancy rate is among the lowest of major U.S. markets and tenants are occupying new space at almost triple the national average.”
Life really is good in the Fort Point and Seaport District! The influx of amenities and direct access to transportation had led the area to become a destination location for many office tenants. Vacancy rates have decreased and rents have risen, but employers along with employees love the vibrant atmosphere the area has to offer.
An editorial on the Boston Business Journal covering the relocation of the apparel company, Life is good, notes that the company is “taking 22,000 square feet in a renovated industrial building at 51 Melcher St. – space for about 70 workers.”
The price per square foot for office space in Boston is headed up in all sub markets and in all building classes. Last year many areas rebounded while others continued to lag behind. 2013 marks the change; with demand strong, rents will continue to rise.
A Boston Business Journal report on the 2013 market growth, referencing a Jones Lang LaSalle’s Spring Skyline Review, notes, “Boston is seeing favorable trends in demographics and exposure to growth sectors…The Hub’s downtown submarkets appear to be entering a new chapter in each of their respective history books with the Financial District seeing results in filling up the low-rise portions of towers, as well as a transformation into a true work-play-live submarket.”
So where is Parcels 12 and 15? They are located above and along Interstate 90 at the intersection of Boylston Street and Massachusetts Avenue in Boston’s Back Bay. In time Boston will continue to see projects like this bridge neighborhoods together that have been separated by our roadways.
An editorial in yesterday’s Boston Business Journal states, “the Massachusetts Department of Transportation has selected a joint venture of Samuels & Associates and Weiner Ventures to build an air rights development on Parcels 12 and 15…on Parcel 15, a 400-foot high-rise hotel and residential building will be set back from Boylston Street, with a low-rise retail building along the street. On Parcel 12, a mid-rise residential building will be located on Boylston Street and a two-floor retail building will cross the Turnpike along Massachusetts Avenue. The project will create 230 apartments, a 270-room hotel and 50,000 square feet of retail space.”