“Seaport Square master developer Boston Global Investors and Morgan Stanley acquired the 23-acre parcels, most covered with surface parking, from News Corp. in 2006. The full buildout would contain enough space to fill more than five Prudential Towers…The next phase will be a 450,000-square-foot office building on the parcel directly east of One Seaport Square. The site is currently occupied by Our Lady of Good Voyage chapel, which will be relocated to 51 Seaport Boulevard. Hynes said the office building could be built on speculation beginning in 2016.”
The evolution of the office space continues at a dramatic pace. Technology has been at the forefront in the change with Wi-Fi, demountable private office systems and informational screen systems. Some still demand the private office while others are embracing the collaborative environment.
Credit: The Boston Globe
A Boston Globe editorial examined a cross-section of office space inhabited by some of Boston’s largest businesses. In the article, the Globe describes that “offices are being designed to offer slightly cramped but open spaces to create “collision zones” for employees, where conversations get started and ideas get hatched. Status-based work areas have gotten the pink slip as companies envision cross-departmental, even cross-industry alliances. And why have a meeting around a gigantic table when you and a few co-workers can set up shop in a booth — not so different from one at Denny’s.”
You can read the Globe editorial by following the link.
Developers continue to look for new sites and space above the Pike has is now entertaining a third developer. Office and retail rents are expected to continue to climb upward through 2015.
Credit: The Boston Globe
According to The Boston Globe, the third proposal entails building “student housing, a hotel, and retail space as part of a sweeping redevelopment of a state-owned parcel at the corner of Massachusetts Avenue and Boylston Street…Boston Residential Group’s plan calls for three buildings that would rise to 24 stories along Boylston Street. The complex would be linked to a nearby MBTA station and include a public rooftop garden.
More information is available on the Boston Globe website, here.
The growth of the Seaport District has created a number of challenges and one of the prominent ones is parking. Massport is looking to offer some relief to this by building a 1,700 car garage atop the Pike.
The Boston Globe offers details on the proposed parking additions, noting it “would be built over a strengthened section of the turnpike tunnel near the World Trade Center complex. Although the site is about a third of a mile from the Seaport Square area, where visitors to Fan Pier and attractions like the Institute of Contemporary Art vie for parking with workers from the adjacent financial district, Massport said the parking garage would be vital for apartments and a planned hotel near the convention center.
The great Boston Fire started on November 9th in 1872 that started on the corner of Kingston and Summer Streets which is now the heart of Downtown Crossing (DTX).
The historic significance of the fire’s aftermath of the city’s commercial development is noted in The Daily Times:
On this day in 1872, a fire in Boston destroyed hundreds of buildings and kills 14 people. In the aftermath, the city established an entirely new system of firefighting and prevention. The fire also led to the creation of Boston’s financial district…The business community saw the burned area as an opportunity to expand its presence downtown. The city’s financial district was established where the fire had hit hardest and Boston soon became a key business center of the late 19th-century United States.
Office rents will continue to rise and I expect this to continue through 2015 and into 2016. The buyers of the recent office buildings will be looking for their return on investment and that will come from increasing the price per foot they charge tenants.
Banker & Tradesman reports the stage was set “for the big rent hikes to come has been a frenzy of office tower sales in the Financial District, Back Bay and Seaport over the last six months…More than 5.5 million square feet of office tower space changed hands or has been placed under contract between July and September, Collins and Regensburg note in a piece for the New England Real Estate Journal. Another 4 million square feet has hit the market or is about to.”
Additional details on the new office towers and projected office rent rates is available on Banker&Tradesman’s website, here.
One thing that we truly aren’t making more of is real estate. The recent focus is Back Bay at the intersection of Mass Ave and Boylston Street above the Pike; will this become the next hot development site? Parcel 13 is getting a lot of attention and the stars might be aligning for building above the Pike.
The Boston Globe reports, “three companies on Friday submitted proposals to build large complexes on the 50,000-square-foot lot, across from the Hynes Convention Center. The pitches include a curvy, 11-story building with residences, a hotel, and stores, as well as a 21-story complex with shops and 350 apartments…The Massachusetts Department of Transportation will select a winner in the coming months. The redevelopment would create a new entrance to the Back Bay and help enliven a disjointed section of the otherwise bustling neighborhood.”
You can read more on the contest and proposals for Parcel 13 on The Boston Globe.
Collaboration seems to be a key driver for employers both large and small. Some companies are trying to figure out the best way/product that could be the key for maximizes efficiencies in the workplace.
The Boston Business Journal notes that Chookka, “a Cambridge company that allows people to chat with each other and send files…officially launched in September. The service is currently in beta mode and hopes to get to 10,000 users “fairly quickly,” said Chookka co-founder Yves Schabes…The goal, Schabes said, is not to replace email, but complement it — especially when groups of people are trying to communicate.”
Additional information on Chookka’s collaborative product is available on the BBJ’s website.
As landlords assemble abutting parcels is there a master development plan or is it simply better economies of scale? Downtown Crossing (DTX) is clearly getting a lot of attention from tenants and landlords.
A recent purchase in Downtown Crossing by Synergy is described by the BBJ:
“Synergy Investments and DivcoWest spent $48 million Friday on a building that gives Synergy control of a full block in a rapidly improving part of Downtown Crossing. DWF IV LLC bought 55-63 Summer St. and 65-69 Summer St. from Brickman 55 Summer LLC of New York City.”
What is co-working space and is it the correct fit for you and your team? Well, if you can play nice in the sandbox and share, it is a great tool as your company grows. Planning is key, meaning, if you require private conference rooms, you will need to plan and reserve them. Don’t expect that they will be waiting for you.
Weigh out the pro’s and con’s and then make your decision.
If you still need some help deciding, Bisnow.com notes its bottom line, “coworking providers have democratized space and turned it into a liquid asset as technology and tech entrepreneurism explode and startups seek collaborative offices with flexible lease terms instead of the growth-hindering “corner office” route.”