Credit: Boston Business Journal
Are you looking for an easier way to Boston’s Seaport? The ferry is coming! OK, it’s a trial, but at least it’s a start.
According to Banker and Tradesman, “the trial service – with ferries making the trip to Fan Pier in approximately 13 minutes – was originally projected to launch in fall 2017. Related Beal committed to pay $794,000 and a $500,000 grant from Massachusetts Department of Transportation will cover the rest of the dock project, [Rich McGuinness, deputy director for waterfront planning at the Boston Planning and Development Agency] said. The Massachusetts Convention Center Authority will oversee the trial service operation, which will be partially funded by corporate subsidies.”
Additional information is available on the BBJ.
The tech, advertisement, media, and information (TAMI) tenants in today’s office market are looking for the following deal points:
- CONSIDERING MULTIPLE MARKETS
- CLUSTER MENTALITY
- HEDGING GROWTH
- OPEN CONCEPT
- MORE CONCERN ABOUT HVAC CAPACITY AND BATHROOMS
- FLEXIBILITY IS PARAMOUNT
- CASH IS KING
- ACCESS AND UNIQUE AMENITIES
Credit: Boston Business Journal
The old parking garage — once, apparently, the largest parking garage in the United States — is getting more than just a makeover. CIM Group, of Los Angeles, is proposing a 17-Story residential tower on top of the existing structure.
According to the BBJ, “CIM Group intends to build a 233,500-square-foot residential tower, with 280 apartment and condominium units, that would rise up to 278 feet to the “top of the highest occupiable floor,” the March 1 letter of intent states…The development would also involve redeveloping 205,000 square feet of the existing Motor Mart Garage “to integrate the structural core of the new tower” and create 106,000 square feet of residential and retail space.”
Additional information is available on the Bizjournals website.
The Class A & B office space in Boston has never been closer than what we are experiencing now. The rents low rise Class A and Class B are near identical with the differentiators being loss factor, amenities and fit up from union versus nonunion general contractors.
Click to download the full Rising Market report.
Credit: Boston Business Journal
The Seaport in Boston is not only home to tech, life science, law firms and luxury condos, but now with be home to MassMutual with room for 1,000 workers. The new office building will be a 300,000 SF building on Parcel E.
Roger Crandall, MassMutual’s chairman, president and CEO “said the decision to expand in Boston and upgrade its Springfield office followed ‘a thorough strategic assessment of our operations and footprint.’ Following that, MassMutual ‘concluded that our home state of Massachusetts is the best place for us to grow and thrive over the long term’…The Boston office will be developed on property MassMutual jointly owns with The Fallon Co., a Boston-based real-estate development firm. Fallon Co. and MassMutual together acquired the Fan Pier development zone in 2005 for $115 million, and Parcel E has remained undeveloped since.”
You can read the full Boston Business Journal article on its website, here.
The Boston’s Globe’s former office site is poised to be an “Innovation Campus” to foster growth and creativity for our economy. Expected delivery is in the Fall of ’19.
“The BEAT” (The Boston Exchange for Accelerated Technology) will be a life science, technology, and advanced manufacturing facility, a Nordblom spokesman said, its name an homage to the beat reporters who worked in the newsroom headquarters for more than 60 years before the paper moved downtown in 2017, a nod to the nearby Red Line as a neighborhood artery, and a gesture at the lively and open space they hope to cultivate at the fortress-like site.
“Our job is to create something to which people want to go, a great place where they want to work,” [Todd Fremont-Smith, senior vice president and director of mixed-use projects for Nordblom] said. “The city is out of space. The Seaport is done; Back Bay’s done.” And given the need for office, tech, and light industrial workplaces, he said, “we’re trying to do it in a creative and funky way that captures people’s imaginations.”
The largest concentration of office space North of NYC is making some changes: Boston’s Financial District is adding new construction with automated parking facilities, starting with One Post Office Square.
According to Banker and Tradesman, “the 41-story One Post Office Square tower..owner Morgan Stanley seeks to demolish the existing 6-story parking garage and build an 18-story addition including 265,000 square feet of office space atop a new automated parking system…Part of a comprehensive repositioning of the 832,000-square-foot tower built in 1980…would include a new glass curtain wall to replace the concrete facade, floor-to-ceiling windows and a 2-story rooftop lighting element dubbed “The Lantern” that would become a new skyline beacon.
Additional details on the tower and the Financial District’s planned modifications are available on B&T’s website.
Boston office design still includes the basics, but now a genuine focus is placed on employee retention. Flexible, creative and communal space are the buzzwords that are exchanged when office tenants share their ideas of what their new space should embody.
Biznow takes a deep dive into a recent report released by architecture firm Ted Moudis Associates, assessing the evolution of office design over the last year, notes the following in its conclusion:
Instead of trying to find one seamless solution for everyone, organizations are working to develop new spaces that will cater to different working styles in order to encourage a balance between effective and efficient workspaces.
“People come to the office to connect with colleagues and so that interaction with the education aspect and learning from their peers and the senior leadership in the office [is important],” [Ted Moudis Associates Director of Workplace Strategy Jamie] Feuerborn said. “I think they want choice. If I want to do heads down focus work I have a place to go, if I want to connect with colleagues I can choose to sit in a different environment to do that.”
For more information, jump over to Biznow’s complete coverage.
Credit: Boston Globe
If we build it they will come. This is not the mind set of all owners; those willing to make that bet, however, have been rewarded with new tenants. Only four buildings in Boston can deliver over 150K SF today, while eight proposed buildings can deliver sometime in the future.
According to the Boston Globe, “speculative building has [traditionally] been a rare and risky move in Boston’s relatively conservative development sector. Office builders typically don’t move dirt until they have leased at least half the space they’re planning. It’s a cautious approach that has protected Boston’s office market against the types of booms and busts that some other cities have experienced, but it’s also one reason the current building surge has mostly centered on housing. Now, with growing tech-oriented companies such as Wayfair and Amazon searching for large blocks of space — and finding few — more developers are mulling a roll of the dice…Rather than sign a lease and then embark on a three-year construction project…developers are considering jumping the line.
You can read the Boston Globe’s article, here.
Gone are the days when tenants would start looking for Boston office space one-to-two years in advance. Prospective tenants now find themselves shopping for immediate occupancy, and are only interested in spec suites that have been prebuilt by the landlord to meet today’s connectivity demands.
Tech has dominated the ongoing positive cycle in Boston’s office market, and the industry’s reputation as a disruptor has extended into how landlords appeal to potential tenants. While law firms and financial firms are known for making space decisions far in advance, the tech community has compressed the time from site tour to move-in…Their growth is more explosive than a bank or insurance company; thus, they wait until the last minute.
As life science firms turned Cambridge into a lab-dominant market, the historically tech-heavy Kendall Square passed its tech reputation across the river into areas like Boston’s Fort Point and Seaport neighborhoods.