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.
125 Lincoln St. includes office space on the top floor…The property, occupying an entire block in the transforming Leather District, could be suitable for a mixed-use redevelopment, said Matthew Pullen, an executive managing director for NGKF. Current zoning allows up to 223,880 square feet of development on the site.
The property is 100 percent leased and generates net operating income of $2 million. Leases have landlord termination options that would enable a redevelopment to begin as early as 2018, according to marketing materials.
“Our expansion to the east coast is a direct reflection of the tremendous demand we’re seeing in cloud collaboration,” said Mark Mader, CEO of Smartsheet. “Building out a world-class team in Boston’s vibrant tech hub is a critical part of serving both U.S. and international customers.”
Consistently recognized as a great place to work, Smartsheet was featured as a “Highest Rated Private Cloud Company to Work For” in a new list by Battery Ventures and Glassdoor released in August 2016. Employee reviews on Glassdoor also praise the passionate and accessible senior leadership, work-life balance, amazing company culture, belief in the product and top-notch talent.
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.
Massachusetts unemployment hits a new record low for the century. Our economy is growing and adding jobs in all sectors.
According to a BBJ editorial, “the Bay State’s unemployment rate dropped to 2.9 percent in November, marking the first time it has dipped below 3 percent since the beginning of the century…Massachusetts added a net of 5,800 jobs last month, with the government leading the way by creating 3,800 new positions, the Executive Office of Labor and Workforce Development said Thursday. Three other sectors — construction, financial activities, and professional, scientific and business services — each added 1,000 jobs or more.”
Additional information is available on the Boston Business Journal’s website, here.
Breather is on an aggressive growth mode with a closing on a $40 million dollar round led by Menlo Venture in participation with Valar Ventures, RRE Ventures, Slow Ventures and Real Ventures. The team of Justin Harlow, Bonny Doorakian, Robert LeClair and Wil Catlin is handling their Boston expansion.
“Breather has tapped into a real need in the workplace. There hasn’t been a company of its kind offering spaces on-demand,” said Venky Ganesan, Managing Director of Menlo Ventures. “Breather has a tremendous vision to connect the world’s spaces and make them accessible to all.”
Breather has no membership fees or long-term contracts. Instead, the company offers workspaces on a pay-per-use basis through the company’s proprietary app.
Sponsored by Berkshire Bank, the winter-garden-like program will include an outdoor ice-skating path, a 20-foot Christmas tree with lights that will be powered by stationary bicycles and more than 40 boutique “chalets” featuring wares from local vendors such as the Grommet, LovePop, Etsy Artists of Boston, and Boston Olive Oil Co.
There will also be an Urban Lodge, a riff on a ski lodge where shoppers and skaters can come in from the cold and lounge with some beer, wine, or hot chocolate.
The holiday vendors will be at the winter garden through Dec. 31. The ice rink, which will feature skating lessons and other events, will be available through February.
According to the smart folks on the left coast, Massachusetts earned the top spot for startups in the country.
From the BBJ:
Massachusetts took the No. 1 spot yet again on a biennial innovation report from an influential California-based economic development think tank.
The ranking, released Oct. 24, “endeavors to benchmark states on their science and technology capabilities and broader commercialization ecosystems that contribute to company growth, high-value-added job creation, and overall economic growth.”
“Make it in Massachusetts” Our economy is strong, companies are hiring, and we have achieved a new low; the lowest unemployment rate since 2001.
According to the BBJ, “Massachusetts’ total unemployment rate dropped to 3.9 percent in August from the previous month’s 4.1 percent — a new low that hasn’t been seen since 2001 — according to the state…Preliminary estimates showed the state gained 5,900 jobs over the month, the Executive Office of Labor and Workforce Development reported.”
Further details are available on the Boston Business Journal’s website, here.
Acquired under a 99-year ground lease almost four years ago, the 26-story, 206,625-sf building should yield “way over” $700 per sf by one account, possibly eclipsing $725 per sf by other sources.
Observers say they anticipate 177 Huntington Ave. will draw from a wide geography of heavy hitters…One factor likely mitigating the 177 Huntington Ave. mark in that area is the leasehold structure of ownership, a format certain funds are unable to pursue. Either way, it appears Beacon is in line for a hefty return on the asset.