Photo Credit: Boston Business Journal
Nine new Boston development projects are scheduled to open in 2013 and the calendar is filling up with 2014 openings as well. Our city landscape is changing with new residential communities and office buildings.
The Boston Business Journal posted a preview of the upcoming buildings in a slide show, here.
Photo Credit: Wikipedia
The Back Bay skyline is poised to change with the addition of 800,000 SF, mixed use project by Carpenter & Company at the Christian Science Plaza on Huntington Avenue. The Back Bay office market continues to be one of the tightest with vacancy rates ending 2012 just below 5.8% and Class A rents nearly $56.00 PSF.
An article on The Real Reporter notes “the 800,000 sf that can be produced on the two sites could be in the $650 million range and would in one expert’s view “be perfect” for a hospitality use or mixed-use project similar to the Charles River Hotel across the river in Harvard Square.”
Additional details about the project are available on The Real Reporter’s website.
Photo: courtesy of Jones Lang LaSalle via Boston Business Journal
Another Class B Financial District office building is said to have traded hands; 2 Liberty has reportedly been acquired by Urdang.
Coverage on the Boston Business Journal offers the following background on the building:
“Built in 1913, the 64,357-square-foot boutique office building was designed in the Beaux Arts style by Peabody & Stearns. It was renovated in the 1990s and combines historical architecture with modern infrastructure. It is located near Post Office Square, Faneuil Hall Marketplace and the Rose Fitzgerald Kennedy Greenway. The property is 81 percent occupied with nine tenants, according to brokers.”
Another Class B Financial District assets is said to trade hands; 11 Beacon is reported to go the Synergy Investments. The Class B market continues to see trades along with increasing rents; currently B product is pricing in the upper $20’s too low to mid $30’s depending on location and improvement package. According to CoStar the vacancy rate for Class B in the Financial District is 11.9 percent as of 12/31/12.
This pdf created by TheRealReporter.com offers details on the Class B office transactions.
Boston’s commercial real estate skyline will continue to change during 2013, with the debt market still eager to loan. Mixed-use projects are on the front burner as demand for services continues.
A recent Banker & Tradesman reader survey reports that, “more than 42 percent of developers and commercial construction professionals [that responded to the survey]…said laboratory and healthcare projects will likely be built this year. More than 50 percent said they expect financing to be available at reasonable terms for multifamily apartment construction.”
The complete commercial real estate survey is available Banker & Tradesman website.
Alternatively, follow the link to view available office space in Boston, or Cambridge.
Photo Credit: John Tlumacki via Boston Globe/Boston.com
Boston Properties is mulling options on how to integrate retail amenities and a host of restaurants into the tremendous presence in the Financial District, at 100 Federal Street.
Boston Globe writer, Casey Ross, wrote on Boston.com, “the project at 100 Federal St. is still in its preliminary stages. But owner Boston Properties Inc. is seeking to create a more vibrant gathering space by adding new retail offerings at the base of the tower, which stands across from Post Office Square Park…The company is weighing several different options, including enclosing a portion of the plaza in a glass structure for restaurants and food-oriented retail businesses.”
Complete details of the potential Financial District renovations are covered on Boston.com via BostonGlobe.com.
Related Office Space
Commercial Real Estate for Lease in Boston’s Financial District
DivcoWest adds four buildings to its Boston assets with a combined size in excess of 3 million square feet.
According to a report in Banker & Tradesman, “the properties were acquired for DivcoWest Fund III, an $870 million fund raised last year. The properties were purchased from a fund controlled by New York-based Brickman Real Estate. Terms of the transaction were not disclosed. The acquisition brings DivcoWest’s total holdings in the Boston Area to more than 3 million square feet of commercial property assets.”
Click through to read the full editorial on Banker & Tradesman’s web site.
Boston continues to be a leader in the office recovery through absorption and new construction.
CoStar Group reported this week that “demand for office space in the U.S. held steady in the third quarter as leasing activity and absorption of available office space continued to pick up momentum following a lackluster start at the beginning of 2012.”
The complete article is available on the CoStar Group’s website.
Related Office Space Listings
Boston Commercial Real Estate for Lease
Boston continues to be one top cites leading office market recovery nationally. The overall vacancy rate dropped to 10.5 percent, according to CoStar.
A Bloomberg report offers insight on the three-year low in office space vacancy rates in the U.S.
The Back Bay office market seems to be to pushing north of pre-cash pricing and vacancy rates, but there is still concern for construction of spec office buildings.
“Despite a single-digit vacancy rate in Boston’s Back Bay offices, two major developments remain idle, waiting for better market conditions,” a Boston Business Journal report notes.
The editorial on the Boston Business Journal web site, offers specifics on vacancies in the Back Bay real estate market, along with information on the delayed office developments.
Related Commercial Real Estate Listings:
Back Bay Office Space