0 Boston Office Market Leads the Nation

Posted on December 4, 2014 by Wil Catlin

Charts courtesy of Marcus & Millichap via MHN Online

Boston continues to lead the nation with one of the most stable office markets which is due to a strong local economy.

Research data from Marcus & Millichap, published on MultiHousingNews.com, reaffirms this claim:

“Over 38,500 jobs were created in 2013 in the city, increasing payrolls 1.5 percent. By the end of 2014 employers will add 40,200 new jobs, of which 14,000 will be office-using positions—a 2 percent increase from last year…Developers completed approximately 4.2 million square feet of office space over the last twelve months as compared to merely 1.4 million square feet in the previous year. Around 5.2 million square feet currently under construction in the metro area is expected to come online throughout 2016.”

“According to Marcus & Millichap, approximately 3.2 million square feet of office space is set for completion by the end of 2014—a 1 percent increase from 2013—with new inventory being heavily concentrated in the Boston/Suffolk County and Route 128 North submarkets.”

You can read the full report on MHN Online.

0 BBJ Interviews Kenneth Goldberg of Bernkopf Goodman

Posted on December 4, 2014 by Wil Catlin

Credit: BBJ

A true professional; I have had the opportunity to sit across from Ken and I appreciate his perspective, approach and candor.

The BBJ published a riveting interview with Ken Goldberg that I compel you to read: Outside the Box: Kenneth Goldberg of Bernkopf Goodman.

Here’s an excerpt from the interview:

“Is there anything else that might surprise people about you? There are a lot of people who are a whole lot smarter and I work hard to make up for that. I might be up all night or well into the night to prep for a meeting — just to be fully prepared. I come across on the ball and in command. But I prepare so that I’m the best prepared in the group.”

0 Plan Submitted for Site over Mass. Pike in Back Bay

Posted on November 24, 2014 by Wil Catlin

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.

0 Sales of New Boston Office Towers to Boost Rent Prices

Posted on November 21, 2014 by Wil Catlin

Credit: Banker&Tradesman

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.

0 Proposals Submitted for Parcel 13 Over Mass Pike in Back Bay

Posted on November 21, 2014 by Wil Catlin

Credit: The Boston Globe

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.

0 Office Rent Increases Expected in Prime Boston Locations

Posted on November 6, 2014 by Wil Catlin

If you need more space or if your lease is near the end of the term, now is the time to secure office space in Boston. Buildings are trading hands and the new owners will be looking for a return on their investment and will push rents. In 2007 when Blackstone bought Equity, rents rose 44 percent and other landlords followed suit.

A report on nerej suggests an optimistic future for landlords; “all signs are in place for another major rent move rivaling The Blackstone Effect of 2007. As of Q2 2014 when everything started, vacancy for class A and B buildings in core downtown Boston (defined as Back Bay, Seaport and CBD) was at 8.4%. In Q4 2006, vacancy was at 8.3%. In Q2 2014 average rent for Boston’s core downtown market was $50.32 per s/f; this is $8.56 per s/f higher than Q4 2006…The momentum in the market is similar to 2007. Based on 2007 actual experience, and a move similar to 2007, it would be reasonable to see a “rent pop” up to the $70 per s/f level for core assets. 2007 peaked at $60.15 per s/f. 2015-2016 should add another $10 per s/f, which would result in average rent of $70.15 per s/f during the next 2 years.”

More information is available on the nerej website, here.

0 888 Boylston Street to Bring New Office Space to Back Bay

Posted on October 9, 2014 by Wil Catlin

Credit: Bisnow

888 Boylston Street will offer the newest office space in Back Bay in 10 years. This building will have a strong green initiative that will incorporate onsite solar and wind power generation. Additionally, “those working in this mid-rise will have enough natural light 60% of the time to forgo artificial lighting thanks to 14-foot ceilings and other technology. It will use 37% less potable water and 45% less energy than a traditional office. Bryan…who has a long time commitment to sustainability, says in addition to solar-energy generated on-site, this will be Boston’s first commercial office tower to use wind turbine energy,” Bisnow reports.

Click through for additional details on the proposed newest Back Bay office building.

0 Office Buildings Planned Near Faneuil Hall

Posted on September 16, 2014 by Wil Catlin

rendering of office space on Quaker Lane in Boston

Credit: The Boston Globe

Quaker Lane in Boston? Must admit, some would have no idea where it is located. Well, changes are coming. This road is surrounded by the former Fidelity headquarters that was sold and is located near the intersection of Congress and State Streets. The proposed plan is to add retail services on the ground for, renovate the offices above and add residential component.

From the Boston Globe:

“A Boston real estate firm is proposing to redevelop a drab cluster of office buildings near Faneuil Hall into a more modern commercial complex with restaurants, stores, hotel rooms, and residences.”

“Our plan is to rejuvenate the entire block through a mixed-use redevelopment strategy,” said Stephen Faber, executive vice president of Related Beal. “These buildings and this location present us with the opportunity to . . . create a real destination.”

0 State Requests Proposals for Parcel 13 in Back Bay

Posted on September 8, 2014 by Wil Catlin

Credit: BBJ

Is now the time for Parcel 13? Well yes it is. Between residential, retail and office developments there is strong demand for more new development projects. Our city population continues to grow along with our daily workforce population. More companies are seeking locations that allow their employees live, work play environments that don’t include driving, but rather rely on public transportation or models like ZipCar and HubSpoke.

From the Boston Business Journal:

Known as Parcel 13, the site represents 54,500 square feet of air rights over the Massachusetts Turnpike, adjacent to the MBTA’s Hynes Convention Center Station on the Green Line. State officials say the site will accommodate up to 320,700 square feet of development that could include a mix of housing, dorms, retail and hotel uses.

0 $500M Copley Plan nears Completion

Posted on August 23, 2014 by Wil Catlin

Credit: Bisnow

Simon is finalizing their plans for Copley to bridge over the Pike.

Biznow reports, “the interior of the 625-foot residential tower—109 condos and 433 apartments—that will accompany 115K SF of new retail is still undefined. But ODA founder Eran Chen intends for it to be contemporary, international, and elegant to echo Boston’s strong economy, growing global cache, and reflect the unique site that straddles the historic Back Bay and South End. To create a new level of luxury living, the vast interior space will also be intimate and personal through the choice of materials and space configuration. The amenities will provide a “world of activities”: perhaps a spa, wine storage, private entertaining, and meeting rooms.”

Additional information on the Copley Place Plan, along with a sequence of images, can be found on Biznow.