Monthly Archives: December 2019

0 Boston Office Report – Fall 2019

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By Corina Stef Commerical Property Executive | December 17, 2019

Demand for new space continues to outpace supply, pushing smaller companies to the suburbs.

Boston continues to show solid fundamentals, outperforming expectations amid a cooling economy. The metro’s diversified economy and strong academic footprint continue to provide an endless technology, life sciences and biotech talent pool for companies to draw from. Government officials launched the Boston 2030 initiative, which calls for an upgraded subway system and expanded Green Line subway. The favorable business climate continues to attract various international investors to the market, including Siemens Healthineers and Takeda Pharmaceutical. The recently rebranded Raytheon Technologies Corp. has also announced plans to relocate from Connecticut to Boston.

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The professional and business services sector led the way in job gains (9,300 jobs, up 1.5 percent year-over-year in August). The information sector gained 3,400 jobs due to tech titans such as Google and Apple expanding their operations in the metro. The influx of new companies and large expansions—particularly in and around the metro’s innovation clusters such as Cambridge, the Back Bay and the Seaport Innovation District—led to an office vacancy rate of 9.7 percent as of September.

Despite a ballooning pipeline comprising some 8.8 million square feet under construction as of September, demand continues to outpace the existing supply. Tight conditions are pushing smaller tenants into the suburbs, while landlords are seizing the opportunity to convert the existing inventory into lab product and office space.

0 Cape Air targets Boston’s Long Wharf as a seaplane docking spot

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Seaplanes are making waves in Boston.  Boston Harbor last saw seaplanes in the 1940’s and as the congestion continues worsen it appears they will be making a comeback for trips to NYC.

Cape Air targets Boston’s Long Wharf as a seaplane docking spot

The Boston skyline is viewed from Long Wharf.
GARY HIGGINS

By   – Real Estate Editor, Boston Business Journal | 

 

Cape Air has its eyes on a new location on Boston Harbor to launch its long-planned seaplane service between Boston and New York: Long Wharf.

Officials from the Hyannis-based airline will host a public meeting Wednesday, Dec. 18 at the Long Wharf Marriott to discuss “a proposal to serve Boston Waterboat Marina, 66 Long Wharf, with a 9-seat seaplane airline service available to the public.”

Andrew Bonney, senior vice president of planning for Cape Air, said in an interview that the airline has worked with officials including the Federal Aviation Administration, the U.S. Coast Guard and the Boston Planning and Development Agency regarding launching a Cessna Caravan Amphibian between Boston and New York.

Cape Air flights would load at the tip of Long Wharf before taxiing one mile out to Boston Logan International Airport’s Runway 1432 and taking off, Bonney said. The flights would use the same spot for landing.

Before the service can launch, Cape Air would need to obtain a license amendment from the BPDA, which owns Long Wharf.

“The BPDA has asked Cape Air to conduct a community process, including stakeholder outreach, about their proposal for Long Wharf before anything can move forward,” spokesperson Bonnie McGilpin said in a statement. “If there is support for the proposal, BPDA would need to amend the license for Long Wharf to reflect these uses and that would require approval by the BPDA Board.”

If Cape Air receives the city license amendment and other federal regulatory requirements, Bonney hopes to launch by springtime.

A one-way flight would cost between $320 and $340 to travel the 191 miles between the two cities, according to Bonney. Traveling by plane or train from Boston to New York typically takes around three and a half hours, while a seaplane can go downtown to downtown in one hour, he said.

In the 1920s, seaplanes going between Boston and New York would dock behind South Station. But seaplane service hasn’t existed in Boston since the 1940s.

“We think it’s really exciting to be able to bring back this mode of transportation to the city of Boston,” Bonney said.

Catherine Carlock can be reached at ccarlock@bizjournals.com. Follow her on Twitter at @BosBizCatherine 

0 Law firm to move out of One Post Office Square, citing renovation work

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The biggest isn’t always the best.  Fortunately, Boston is chock-full of great work space. What strategies are you solving for & how can we help?

Law firm to move out of One Post Office Square, citing renovation work

One Post Office Square in Boston.
W. MARC BERNSAU

By   – Law and Money Reporter, Boston Business Journal 

Nelson Mullins Riley & Scarborough LLP plans to move its Boston office to One Financial Center next year, in part to avoid the disruption caused by construction in its current home at One Post Office Square, according to its local managing partner.

The South Carolina-based law firm is taking approximately 43,000 square feet on the 35th and 36th floors of One Financial, the office tower across Atlantic Avenue from South Station, said Peter Haley, the firm’s leader in Boston.

It’s about the same amount of space that it currently occupies at One Post Office Square, where it’s been for most of the decade-plus it’s been in the Boston market. But the Post Office Square building is undergoing a major renovation, including a new-look glass exterior, a large-scale interior makeover, and a significant expansion of rentable space. The project is being co-developed by JLL and Anchorline Partners.

According to Haley, had Nelson Mullins stayed in Post Office Square, it would have needed to move at least once, and perhaps twice, within the building over the short term to accommodate the makeover. The firm’s leaders were wary of that level of disruption. JLL “was great” about trying to find a solution, but the firm “couldn’t quite find something that was right for us,” Haley said.

Nelson Mullins expects to move into One Financial in 2020, potentially in August. Haley anticipates the new space will have about 65 offices, with a more efficient, glass-filled floor plan compared to its current location.

The law firm’s local headcount has changed significantly in recent years. In early 2015, it had 60 attorneys in Boston, but by the next year that figure had dropped to 35 after teams of attorneys left for K&L Gates LLP and LeClairRyan PC.

Since then, however, Haley and the firm’s leadership have been aggressive about wooing partners from other Boston law offices. Its local headcount is back up to 53, according to Haley. The new recruits hail from a variety of firms and practice areas: This year alone, its additions include intellectual property attorneys from Pepper Hamilton LLP and Mintz and a litigator from State Street Corp.

“We’ve had a nice ability to attract lawyers from around the city,” Haley said.

That level of growth is reflected in the firm’s recent financials. In 2014, its $298 million in revenue put it outside the 100 highest-grossing law firms in the U.S., according to American Lawyer Media data. In 2018, it grossed more than $400 million across its more than 20 offices, earning it a ranking as No. 87 in the country.

The new address and new names aren’t the only changes coming to Nelson Mullins. Later this month, Haley is stepping down as office managing partner in favor of his colleague, Brian Moore. Haley has been the office’s leader since 2013 and felt a change in leadership would be good for the future of the firm. He plans to return to his practice full-time, although he will hold onto some managerial responsibilities at the firmwide level.

“The turnover’s very helpful in terms of developing and building leadership within the office,” he said. “Just having one person staying there for 10 or 15 years, I think you miss out on opportunities to build future leaders.”