0 Is WeWork’s $5 Billion Valuation Justified?

Posted on June 9, 2015 by Wil Catlin

Credit: Bloomberg

Is WeWork onto something here or will this be a passing fad? Time will tell, but if the 90,000 glasses served last month are a litmus test of the future, WeWork is onto something that could transform how “Justin in time” office space is used.

From Bloomberg:

At a basic level, WeWork is a company that sublets office space, taking care of many of the time-consuming hassles involved in self-employment. That’s not the factor, though, that has captured the fancy of venture capital investors, who have pushed the five-year-old company’s valuation to a giddy $5 billion…WeWork has cast itself as a new kind of workplace for the post-recession labor force and a generation that has never known a cubicle. It aspires to make your job a place you never want to quit.

0 Boston Office Rents Projected to Grow 30% by 2017

Posted on June 9, 2015 by Wil Catlin

Harbor Corporate Center in Boston Seaport District

It is true, office rents are going to continue to rise with no expected tenant relief until after 2017. This is primarily due to the limited amount of speculative new construction coming online. Developers have chosen the residential dollars to chase over the office dollar and very few office developers are willing to go in the ground on spec.

B&T notes, “Dropping a 30-percent rent-bomb on the Boston market is going to have a big impact, even if it is spread over three years…For starters, if they stick, higher rents will make winners out of all those new office towers on the drawing boards right now for downtown Boston. Building a new tower in Boston these days can easily be a billion-dollar proposition and someone has to foot the bill for it…So the rent spike is music to the ears of all those ambitious developers, who will need to push rents towards $80, if not $100, a square foot for their top suites to keep their lenders on board and meet their projections.”

You can read the full article on Banker&Tradesman, here. Alternatively, click to browse currently available office space in Boston, ahead of the expected 10% growth next year.

0 Virgin Hotels Exploring Boston Location

Posted on June 9, 2015 by Wil Catlin

Virgin Airlines, Virgin Galactic, Virgin Fuels, Virgin Mobile, Virgin Comics, and now Virgin Hotels; Richard Branson has his sights set on Boston with a new hotel concept focusing on the business traveler.

According to an article on the BBJ, “the company is exploring a location in Boston — along with Miami, Austin, Los Angeles and other U.S. cities, “but nothing to announce yet.”

Credit: BBJ

The second Virgin Hotel is expected to open next summer in Nashville, with a third location to follow in New York City.

0 MassChallenge Accepts 128 New Startups

Posted on June 2, 2015 by Wil Catlin

Who are the newest inductees into MassChallenge? Have a look.

The BBJ remarked on the program’s intrigue, “part of the four-month long no-equity program, startup teams will be granted free office space at MassChallenge’s headquarters in the Seaport and work with expert mentors in the area. Hardware startups will also have access to the MADE@ MassChallenge hardware lab, where they can prototype and manufacture products.”

Jump over to the BizJournals.com website to see the complete list of all 128 startups accepted to the accelerator program.

0 186 Lincoln Street Sells for $20.6M

Posted on June 2, 2015 by Wil Catlin

Lincoln Street office building in Boston

Credit: Banker&Tradesman

Building trades continue with Brickman of New York acquiring 186 Lincoln Street for just over $300 per square foot.
Banker&Tradesman offered context on the sale, indicating “the 68,526-square-foot multi-tenant office building near South Station is 70 percent leased, with tenants including Roche Diagnostics, Full Contact and Greystone Solutions…The South Station submarket contains 1.3 million square feet of office space in 22 buildings, 85 percent of which is class B product.”

You can read the full B&T article, here.

0 Downtown Crossing gets a Taste of France

Posted on June 2, 2015 by Wil Catlin

Baked goods have a new meaning at 1 Boston Place. The 126 year old firm knows a thing or two about macaroons and croissants.

French Restaurant in downtown crossing Boston

Credit: Boston Business Journal

The Boston Business Journal notes, “Paul, a 126-year-old French bakery, is officially opening its Downtown Crossing location at 201 Washington St…The Downtown Crossing location will have a full-service restaurant — a first for the 126-year-old bakery — inside and out on the 50-seat terrace at One Boston Place.”

You can read more about Paul, the newest French restaurant to grace the hub, on the BBJ.

0 Boston Office Forecast: Meaningful Moves Ahead in Financial Sector

Posted on June 2, 2015 by Wil Catlin

Boston financial district office buildings

Credit: B&T

The Boston office market has big movers that need to make some real estate decisions. The market continues to tighten and blocks of 100,000 square feet and above are harder to find.

From Banker and Tradesman:

Banks continue to move employees into smaller workspaces, with the industry average now 150 square feet per employee, down from 225 square feet in 2009…many banks are [also] choosing to relocate offices. Only 25 percent of the financial services office deals tracked by JLL in 2014 were lease renewals, while 46 percent were relocations.

That trend is likely to continue in Boston, with three major financial institutions responsible for 33 percent of the total active requirements in the market. But the result likely will be a net decrease in occupied space.

Putnam Investments and Wells Fargo are in the market for 280,000 and 220,000 square feet, respectively, while BNY Mellon is seeking to downsize to 350,000 square feet. And available build-to-suit parcels in the Seaport District provide competition to existing office towers in the Financial District.

0 Tech Sectors Driving Boston Office Market Growth

Posted on June 2, 2015 by Wil Catlin

Tech tenants are driving office demand nationwide with Boston ranking number 7 falling just behind Seattle. To be classified as a tech talent market, there must be a labor pool of at least 50,000.

Desired Options:

·         Food Options
·         Shopping
·         Wellness Center
·         Outdoor Space
·         Recreation Room
·         Onsite Daycare
·         Bike Storage/Bike Rental
·         Zip Car

Credit: Forbes

To view some of Boston’s coolest office designs, check out Forbes’ online gallery.

0 Northern Avenue Bridge will be Restored for Motor Vehicle Traffic

Posted on June 2, 2015 by Wil Catlin

northern avg bridge leads to seaport office buildings in Boston

Credit: B&T

The Northern Avenue bridge built in 1908 is recommended to get another lease on life. The bridge is one of the last remaining swing bridges in New England and is an engineering marvel to watch when it’s in motion.

The bridge was not only designed for pedestrians and cars, but also the Union Freight Railroad.

A study on the Seaport, referenced in Banker&Tradesman, cites the following:

The overall volume of commutes into the Seaport will increase 63 percent by 2035…The study committee’s consensus: restoring the three-lane bridge, with one lane dedicated for motor vehicles. Pedestrian and bicycle access also would be preserved.

“There was some concern in the pedestrian and bicycling community about opening it up to traffic,” said Rick Dimino, CEO of Boston-based planning organization A Better City Inc. “But at the end of the day, there was pretty substantial support that the bridge needs to be opened up to traffic again.”

0 Boston Landing Station Has Official Groundbreaking

Posted on May 27, 2015 by Wil Catlin

Boston newest commuter rail station groundbreaking occurred today. Metro West commuters can add another stop to the local train service starting in the fall of 2016.

Credit: ArchPaper.com

Residing on the MBTA’s Framingham/Worcester Line, B&T notes “the Boston Landing station is projected to cost between $14 million and $16 million and is funded by New Balance, which also funded the $500-million mixed-use complex in Brighton anchored by the 250,000-square-foot New Balance headquarters, near the station…The Warrior Ice Arena, the new practice facility for the Boston Bruins at Station Landing, will be completed in September 2016. The development will also include 80,000 square feet of retail space, a 175-room boutique hotel, housing and an athletic facility. It has approvals for an additional 450,000 square feet in office space.”

You can read the full article on Banker & Tradesman, here.