0 How Do You Feel about Office Beacons?

Posted on November 10, 2014 by Wil Catlin

Credit: OfficeBeacon.com

Does your office use beacons like Digitas to figure out your movement with the office?

“DigitasLBi…has installed 120 beacons — devices that communicate with nearby smartphones via Bluetooth technology — in its Boston office in order to identify how and where its employees congregate. The goal is to learn how to improve office design and meeting scheduling.

‘the most immediate goal…was to use data collected from the beacons to establish a baseline for how the office’s 700 employees currently meet with one another.'”

Does this sound like a model for efficiency or will it yield a new mode of employee resentment?

0 What will it cost me to move into my new office space?

Posted on November 6, 2014 by Wil Catlin

Humboldt moving, logo What would it cost to move your company from Downtown Crossing in the Financial District to the Seaport? Let’s assume you are in 3,600 rentable square feet and moving into something similar.

According to Humboldt Moving and Storage, you can use the following as a guide:

• The cost per square foot would be $3.00 + for an average, and it is usually + on a commercial office move.
• This does not include packing, crating, panel systems, or any special services.
• Tenants will usually perform their own packing. Rental crates will average around $5.00 each. Figure 3-6 crates per person. Legal and accounting firms will require more due to paper record keeping.
• Workstations will usually run $200 plus each to disassemble and reassemble.
• Based on a 25 person office with 20 workstations your move would cost $15,300.00 or $4.25 per square foot.

0 How to Price Out your New Office Space

Posted on November 6, 2014 by Wil Catlin

So, you have just secured your next round of funding and you are off to the races. As part of your upcoming spend, you need to get an office that exudes the culture of your vision while being easily accessible for your growing team. You find it and your new headquarters will be in the heart of Downtown Crossing, DTX. What’s next, what are the associated costs?

Figure the space is 3,600 rentable square feet with 25 workstations.

Office space is quoted per square foot per annum, but P & L’s are not. The following breaks down the all the various expenses based 5 years of occupancy.

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.

0 100 Cambridge Street Goes up for Sale

Posted on November 6, 2014 by Wil Catlin

Looking for an office tower downtown to buy? The Commonwealth of Massachusetts is selling 100 Cambridge Street and looking to capitalize on the high prices that are being paid for Class A buildings around Boston.

Credit: Boston Globe

The building is:
·         22 Stories
·         565,157 Rentable Square Feet
·         Built in 1965
·         Renovated in 2004
·         Typical floor size is 22,255 Rentable Square Feet

Some of the buildings tenants re:
·         Department of Revenue
·         Prince Lobel Tye LLP
·         Miller Wachman LLP
·         Mass General
·         Penn Mutual Life Insurance Company

Marty Jones, chief executive of MassDevelopment, commented in a Boston Globe article that the “state-owned building is not a development opportunity, but she said it should prove attractive to buyers because of steadily rising office rents in downtown Boston. Built in 1965, the tower, formerly known as the Leverett A. Saltonstall Office Building, fell into disrepair and was gutted by MassDevelopment in 1999. The agency added 75 condominiums at the base of the building, along with 25,000 square feet of retail stores.”

You can read the full article on the Boston Globe’s website.

0 Christian Science Parcel Bought for $22M and Heavy Restrictions

Posted on November 6, 2014 by Wil Catlin

Credit: ChristianScience.com

Development opportunities continue in Back Bay with some interesting restrictions from sellers.

According to a report on the BBJ, “the Church Realty Trust, which administers property for the First Church of Christ Scientist, dictated in a deed conveying a parcel at 30 Dalton St. to developers that the land was subject to long-term use restrictions that reflect Christian Science teaching around alcohol sales, pornography and, to a limited extent, medical practices.”

Additional details are available on the Boston Business Journal, here.

0 Office Trends Among Boston Law Firms

Posted on October 26, 2014 by Wil Catlin

Credit: Cannon Design

Boston, compared to our peers, has some of the most efficient lawyers. Boston law firms only occupy about 10 percent of the high end, Class A, real estate in the city. Other cities those numbers range from 25 percent to 42 percent.

The BBJ has strewn together a ‘snapshot of office space trends’ among Boston law firms. The article remarks of the office environment in Boston, noting “legal employment is still down about 2,600 jobs from pre-recession numbers.”

The full article, containing a list of law firm office trends in Boston, is available on the Boston Business Journal’s website.

0 Office Market ‘As Good as it Gets’

Posted on October 26, 2014 by Wil Catlin

Credit: CoStar

If you need office space or are looking to expand or renew at your existing location, consider now. The market is clearly in favor of the landlord and is expected to continue in that direction. Investors are reaping the benefits, while tenants are looking for options with competitive rents.

Hans Nordby, managing director of CoStar Portfolio Strategy, described the commercial real estate environment as “the prettiest picture you’re likely to see in this economic cycle. If you’re waiting for ‘as good as it gets,’ it’s probably today in terms of year-over-year office employment growth being so pervasive.”

Boston office tenants absorbed over 350,000 sf of space in the 3rd quarter, lowering vacancy to just over 10 percent. Class A rents rose to $51.80 per SF.

Additional information on the national market are available on CoStar.com.

0 Boston Parking: A Growing Challenge for Hub Commuters

Posted on October 20, 2014 by Wil Catlin

Credit: The Boston Globe

How long does it take for you to find a parking space or have you given up. My father would say, as he combed the Financial District for the coveted spot, you have to believe. Believe that there is a spot for you. Well, for those that don’t follow that model, they have found that getting that spot is nearly unattainable. I rely on the T and Uber, during prime time and use the believe method for early morning meetings.

A recent Boston Globe article indicates that the daily plight for Boston commuters is only worsening. “Boston’s current parking crunch is the product of conflicting ambitions. City planners placed parking caps on downtown and South Boston years ago, hoping to reduce pollution and encourage the use of public transportation, while mayors and developers pressed for business and residential expansion…James Gillooly, interim commissioner of the Boston Transportation Department, estimates about 3,000 spaces have been eliminated in the Seaport area over the past several years, as offices, condos and hotels have replaced open lots…’As this neighborhood grows,’ said Gillooly, “there will be spaces that used to be used by people in the financial district, who now have to come up with a new strategy of how to come and go from work.’’

More information on Boston’s transforming parking landscape is posted on The Boston Globe’s website.

0 Boston Landing Along the Mass Pike to House Bruins’ New Practice Rink

Posted on October 12, 2014 by Wil Catlin

Bruins mixed use practice facility in Brighton

Credit: Boston Herald

Not just tech companies are looking for new space, the Bruins are coming to Boston Landing along the Pike. Combined with a new commuter rail station, our city continues to expand and offer services that address our growth.

The Boston Herald notes, “the Boston Bruins’ new Hub practice rink stands to get a prime location along the Mass Pike in New Balance’s $500 million Boston Landing project…Pending permitting approvals, New Balance hopes to start construction on the 75,000-square-foot rink complex — and an adjacent nine-story office building with a ground-floor Bruins pro-shop and other retail — no later than November, much earlier than the original planned spring start date…The Bruins’ practice facility will have seating for about 650 spectators, a VIP area, function room and concessions. It also will include locker rooms, a lounge, a strength and conditioning/rapid shot area, training rooms, video and conference areas and offices for the Bruins.”

More information on the project, along with the Bruins’ practice facilities, are available on the Boston Herald.