Greater Boston’s life sciences rental rates have climbed 7.4 percent this year to reach an average rate of $47.40 per square foot, outstripping other top markets including Raleigh/Durham, North Carolina (up 12.4 percent year-over-year to $19 per square foot); San Francisco (16.9 percent, $37.30); San Diego (15.5 percent, $29.90); New York/New Jersey (8.3 percent, $24); and Los Angeles (4.9 percent, $30.70)…In Cambridge specifically, the average lab rent is $51.60 per square foot, the report said. The report also said tenants are currently on the hunt for around 1.3 million square feet of space in the city.
Six buildings in Boston’s Financial District, Congress Square, are set for complete renovation by Related Beal.
According to the Boston Globe, the BRA approved six projects in total, “the agency gave the go-ahead to some $515.6 million in development…One of the biggest projects is Congress Square, the renovation of an entire city block of buildings in the Financial District, between Congress and Water streets. Developer Related Beal plans to turn six office buildings into a boutique hotel, new housing, and office space…Also approved was Clippership Wharf, which would put 492 apartments and condos on 12 acres on the waterfront in East Boston. Developer Lend Lease plans to move forward on the long-stalled project and won approval to add housing units and subtract parking spaces from a plan approved in 2003.”
You can read the full article on the Boston Globe, here.
Yes, this should be renamed as it has become a landmark in our city. Boston is confusing to navigate; Uber, Google and Waze have helped, but let’s give one of our new attractions a simpler address.
The debate, and subsequent argument for renaming the roads surrounding The Greenway is articulated by Bostinno.Streewise.co, noting “the Rose Kennedy Greenway is flanked by two parallel streets that run in a different direction. Atlantic Avenue winds northbound while on the other side, headed southbound, is a single street known at different points as John F. Fitzgerald Surface Road, Purchase Street, Surface Road and again John F. Fitzgerald Surface Road…By renaming what we’ll refer to here in this article as Surface/Purchase, pedestrians and non-natives would have an easier time making their way through Downtown, while the Greenway’s brand recognition would significantly increase—and that in turn would benefit the surrounding area and buildings.”
Low-rise and Class B offices are now commanding rents in the mid- to upper $40s range, while high-rise rents are reaching well past the $90 per square foot range, according to second-quarter research from commercial real estate services firm DTZ. Class B office rents are up 21 percent from last year in the Financial District, 12 percent in the North Station region and 20 percent in South Station, DTZ said.
“It’s also worth noting that nearly 25 percent of Boston’s office inventory has traded hands in the past 12 months,” the research report said. Meanwhile, Cambridge also maintained its post as the strongest real estate market in Massachusetts, with $2.2 billion in sales activity. That’s more than half of the overall $4 billion in total sales volume so far this year, according to recently released second-quarter research from JLL..Direct average rents rose more than 5 percent year-over-year in nine out of 12 of Boston’s submarkets, topping out with 16.3 percent growth in East Cambridge.
One Broadway in Kendall Square (click for property details)
Fewer options exist on the Boston office market, and what is available is more expensive then previous quarters. Combined with fewer concessions offered by landlords, local tenants are feeling the pinch.
Boston’s office market is hopping, according to reports issued by real estate brokerages Transwestern and Jones Lang LaSalle. Driven by strong employment gains and growing companies in need of additional space, rents are rising all across Greater Boston, up 7.6 percent in the last 12 months. Throughout Cambridge, there are just three vacant office spaces of 20,000 square feet or more on the market, and rents in Kendall Square are averaging above $70 per square foot. Along Route 128, vacancy rates are at record lows, while office rents along Interstate 495 are at seven-year highs.
The pilgrimage to Boston continues as Cambridge tightens; InsightSquared and Architectural Resources will soon call Back Bay home.
The BBJ notes, “Business analytics firm InsightSquared, which just last spring moved into expanded office spaces at 160 Second St., this September will move to a 45,000-square-foot office at 4 Copley Place. The office spans two floors and is almost triple the size of Insight Squared’s 16,000-square-foot Kendall Square location…The expansion is driven by InsightSquared’s growing customer count and revenue, a company representative said. The office will also accommodate the firm’s growing employee base, which has doubled to more than 150 in the past year.”
You can real the full Boston Business Journal report on its website, here.
Boston Fire Fighters will be better equipped when responding to a call. Our first responders will now be equipped with information from a variety of city departments, including Inspectional Services and Permitting. Streaming data will provide an array of relevant data to the fire truck while on route to a call; this will hopefully mitigate hazards along the way, and keep the fire fighters up-to-date on all necessary info related to the call.
“The more tools we can get in the hands of a firefighter, the more knowledge they have upon entering a fire, the better off we are,” said Boston Fire Commissioner Joseph E. Finn. “When you’re in that high-stakes environment, every second counts and every decision matters.”
Fire trucks will soon be outfitted with what the city calls “building intelligence” software that taps into records and data from other city departments, including Inspectional Services and Permitting. That will let firefighters know the building’s floor plan, whether it has sprinklers and potential hazards in the building…Before entering a building, firefighters will also have access to information about whether the structure has a history of code violations, including illegal apartments.
The greater Boston audience has an opinion about just about anything, including our skyline. This poses a challenge to Boston’s strongest developers and architects to reshape our city into something elegant, energizing, and functional.
No matter how elegantly they may be paved or planted, urban plazas are boring, windy, and little used, especially in weather like ours. The Prudential, back before its Arctic plazas were filled in with shopping arcades, was a good example. The Federal Reserve Bank, next to South Station, is another. It’s a handsome, eloquent Diva tower behind a plaza that has the charm of a recently abandoned battlefield.
As far as the public is concerned, cities aren’t made of buildings and plazas, anyway. Cities are made of streets and parks. From the point of view of urban design, the buildings are there to shape those public spaces and feed them with energy.
The deal will enable Biomed to begin renovating the buildings. They include two lab and office buildings at 200 Sidney St. and 40 Erie St., with a total of 239,000 square feet, that were leased to Vertex through this December, and another 21,000 square feet at 21 Erie St. that was leased to Vertex through May 2017.
Biomed said it will update the buildings’ entrances and lobbies, and add indoor and outdoor collaboration spaces and fitness centers. The work will begin immediately and the sites should be ready to be leased to new tenants starting in September, the developer said.
“The challenge you have in the city of Boston is: do we create too much supply and get to a point where we’re not seeing rent growth?” said Mitchell Roschelle, PwC’s national practice head of real estate advisory. “We heard this quarter in the survey a little bit of concern on the part of some investors about the new supply to the market. How that supply performs is going to dictate whether we see investors flooding the market with capital.”
The tenant retention rate was 68 percent in the first quarter with landlords offering an average of five months of free rent, according to the survey. Cap rates averaged 5.7 percent in the Boston central business district and 7.2 percent in the suburbs. Boston is one of 32 U.S. office markets expected to remain in expansion phase in 2015, the PwC report said, with employment generating demand for office space outpacing new supply…San Francisco, which shares many of Boston’s market characteristics, is expected to contract in 2015 and enter a recession mode with negative rental growth in 2017.