Credit: Flickr/Emmanuel Huybrechts
The office market in Back Bay is vibrant and alive with activity. It’s 18M square feet not only boasts the 1st (200 Clarendon Street) and 2nd (Prudential) tallest buildings in New England, but also will possess the tallest residential building (1 Dalton) as well.
Vacancy is down and cost of occupancy has increased. Newbury Street office rents can range from upper $40’s t0 low $70’s per square foot.
“I think Back Bay has the amenities, the public transportation and all the attractive features a company is looking for,” said Avison Young principal Ron Perry, who is speaking at Bisnow’s Boston Office of the Future event later this month. “At night, it’s alive with restaurants. Traditional firms like it, and they’ve done a good job lately in making that appeal to technology companies.”
“Boston has an amazing talent base with great universities, a strong diversity of industries and an innovative culture,” Wayfair Head of Real Estate and Workplace Services Reed Gilbert said. “Wayfair’s headquarters, centrally located in Boston’s Back Bay, makes it easy for employees to bike, walk and take public transportation to work.”
Back Bay Office Space for lease
Back Bay becomes home to John Hancock – 2.0.
The insurance company is returning its headquarters to Back Bay, where it already has a 1.2M SF campus and employs over 2,000. Its 465K SF Seaport headquarters at 601 Congress St. employs 1,100 people, all of whom will be transferred by the end of 2018 to two Back Bay buildings at 200 Berkeley St. and 197 Clarendon St., the Boston Business Journal reports.
[John Hancock CEO Marianne] Harrison sent a memo to Hancock employees Tuesday, saying the company had enough space in Back Bay, given the number of local employees and how many work remotely. Along with the weather beacon-capped 200 Berkeley and 197 Clarendon, Hancock has approval to build a third office tower in Back Bay. The 26-story, 388-foot tower at 380 Stuart St. could be developed for Hancock or another tenant.
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.
Your office rents in Boston are directly impacted by the distance to the nearest MBTA stop. Simply put, expect to pay more the closer you are.
Banker and Tradesman notes, “despite the departure of several large office tenants for the Financial District and Seaport, Back Bay still has Boston’s highest-priced office space. Buildings within a 5-minute walk of Hynes Convention Center station on the Green Line average $66.69 per square foot, partly reflecting the completion of Boston Properties’ 888 Boylston tower anchored by Natixis Global Asset Management.
You can read additional analysis on the impact of the MBTA on Boston office prices on B&T.
Security is changing in our office and retail centers with the introduction of Robots. Boston Properties is a leader with the introduction of their robot at the Prudential Center in May.
Credit: Boston Globe
From the Boston Globe:
Dennis Crowley, senior vice president with Allied’s integrated technology group, said a similar robot in California recently used its thermal imaging technology to identify a hair curler someone had left on at a boutique kiosk after closing for the night.
The robot alerted security guards at the nearby command center.
“So they were able to prevent a fire,” Crowley said.
Rood Deck, parking and a newly renovated lobby can all be found at 116 Huntington Avenue in Boston’s Back Bay. The 275,000-square-foot, 14-story building is situated directly across the street from 101 and 111 Huntington Avenue at the intersection of Ring Road and Huntington Avenue.
“We were drawn to its location in Boston’s most vibrant neighborhood and to the opportunity to reimagine it as a best-in-class office destination,” said Adam Popper, Columbia’s senior vice president for the Eastern region, in a statement. “We believe the penthouse space, with its wrap-around terraces, high ceilings, modern amenities and incredible views, will soon be recognized as one of Boston’s premier corporate environments, and we’re already seeing significant interest from prospects as we seek to fill the building’s remaining availability.”
Shawmut Design and Construction, the third-largest general contractor in Massachusetts, completed the $10 million renovation, which was designed by Dyer Brown. Work included upgrades to the building’s lobby, installing a glass facade and bronze panels along the building’s exterior, and adding close to 1,500 square feet of private outdoor terrace space for a future tenant for the 25,366-square-foot penthouse space.
745 Boylston Street in Boston’s Back Bay
Boston Realty Advisors has been retained by Upland Capital to exclusively represent 745 Boston Street in Boston’s Back Bay. The building is a 112,000 square foot 8 story building with Verizon and Max Brenner as the retail tenants.
The building currently has just over 18,000 square feet available and can accommodate tenants from 1,700 – 12,000.
• 745 Boylston Street Back Bay
• Property Brochure
• Floor plan
Image Credit: Boston Globe
The value option in Boston office leasing, the Financial District, holds the single largest concentration of office space and workers. Submarkets like the Seaport, Kendall Square, and Back Bay are pushing numbers in excess of the pre-2008 crash.
From the Boston Globe:
Data from the Boston office of Colliers International show that vacancy rates for the upper reaches of buildings in the Financial District — floors 20 and above — are at their highest in nearly a decade. And as a whole, the Financial District lost more tenants per square foot in 2016 than any other area in the city, ending up with nearly 850,000 more square feet of vacant space than in 2015…The Seaport District remains the new “it” address, with companies leasing an additional 400,000 feet of office space in 2016.
The air rights over the Turnpike might soon see the way forward for two new Back Bay Towers. The current plan for both buildings is residential with street-level retail.
According Curbed’s Boston vertical, “the whole affair hinges on building a 23,000-square-foot platform over the Turnpike…On that podium would go a six- to seven-story base for both towers. That base would contain 33,000 square feet of retail, amenities, and lobbies as well as 303 parking spaces.”
Additional info on 1000 Boylston is available on Curbed.
Credit: Boston Business Journal
The Boston office market is tight, with vacancy rates among the lowest in the nation; Boston shared the 5th spot nationally with Portland, OR.
The BBJ notes, “the percentage of office space that’s vacant in greater Boston is lower than all but six other major U.S. cities…Boston recorded an 11.9 percent office vacancy rate in the third quarter, down 0.9 percent from the year-ago period, according to the third-quarter office report from commercial real estate research service Reis Inc. That vacancy rate ties Boston with Portland, Oregon as the fifth-lowest in the U.S., behind New York (9.2 percent), Washington, D.C. (9.3 percent), San Francisco (10 percent) and Seattle (10.8 percent).”
You can read more on the Bizjournals website.