0 Open Office Experiment in Boston Fosters Inclusion and Collaboration

open office space in Boston

Credit: Harvard Business Review/hbr.org

Looking for a new office?  Thinking you simple want private offices because that’s what you have always had?  Well, have a look at how that has changed for some companies.

According to the Harvard Business Review, a working ‘office experiment’ was carried out by The Bridgespan Group in its Back Bay offices, to determine what impact an open, shared workspace would have on employee collaboration and production. The HBR article includes the following:

At the end of our design lab, we handed off to our architects a “radical” plan which they built out over the next few months.

It included:

  • an open café, where staff bump into each other making coffee, or making sandwiches and catch up or take care of business
  • a “laboratory” space with tables, sofas and white boards at the heart of the office, where teams meet and discuss work previously done in closed conference rooms
  • a large, closed-off library space with lots of natural light that we call the “quiet car,” where people can work without interruption
  • several small comfortable seating clusters throughout the office for small-group conversations
  • a bank of small private rooms for people to use when they truly need privacy for meetings, phone calls, or individual work–but no private offices even for the most senior staff
  • sitting and standing work stations where people can park themselves day-to-day
  • glass-walled conference rooms so most meetings are seen by everyone, even if they aren’t heard
  • background noise masking, so that conversations in the open are heard as mild hubbub rather than distinct, distracting words
  • lockers in which staff can keep personal items

Six months in, we continue to be amazed at how differently we work in the new space and how much the spirit of our office has changed. We used to make appointments to see each other; now, we often just run into each other, and all kinds of new ideas emerge from these unplanned collisions of two or three or four people….Formal meetings are routinely held in the open areas, where it’s easy to bring in someone else on the spur of the moment—just because they’re passing nearby, or sitting in view.

0 Boston Office Motif is Open and Shared

modern office space in boston

Credit: The Boston Globe

The look and feel of today’s office space is dramatically different than what we saw just 10 years ago.  Collaborative is the new norm and private offices are a thing of the past.  Gone is the bowling alley of offices replaced by open spaces with exposed ceilings.

Drawing a parallel between the modern workspace and online social behavior, the Boston Globe notes, “in a fast-paced high-tech world where community seems to be more valued than privacy, the office partitions have come down in the name of collaboration and quick exchange…Offices are being designed to offer slightly cramped but open spaces to create “collision zones” for employees, where conversations get started and ideas get hatched. Status-based work areas have gotten the pink slip as companies envision cross-departmental, even cross-industry alliances. And why have a meeting around a gigantic table when you and a few co-workers can set up shop in a booth — not so different from one at Denny’s. Sound much different from your office? Just wait.”

The Boston Globe article is comprehensive and worthy of a read; it’s available on the Globe’s online real estate section.

0 Seaport Office Rent Exceeds Boston Financial District

Boston seaport district office building

Seaport District: 320 West Second Street (click on the image for property details)

The most expensive office market in Boston is Back Bay. Not surprising. The surprising piece of news is the Seaport and Innovation District is the second most expensive office market in Boston, edging out the Financial District by over a $1.00 PSF.  So the value play is the Class A low rise and Class B within the Financial District.

“‘For the first time in at least the last seven quarters if not ever, average asking rents in Boston’s burgeoning Seaport District have surpassed asking rents in the city’s Financial District, according to new data from real estate brokerage Jones Lang LaSalle,’ published on the BBJ. “The highest rate of year-over-year rent growth was in the Seaport District, where landlords were asking 24.7 percent more in the third quarter of 2014 than during the third quarter of 2013.”

Additional details on the market discrepancy are available in the full Boston Business Journal article.

 

 

0 Strong Demand Keeps Boston Office Rents Rising

boston financial district office space

Office Building in Demand: 121 High Street in Boston’s financial district (click for property details)

Today there are fewer options for office tenants to occupy, along with with increased office rents. Combine this with additional tenant improvement dollars that have been pushed downward, and free rent has become obsolete.  What does that mean?  We are in the midst of a landlord market.

From The Boston Globe:

“Strong growth of technology and financial companies is increasing office rents across the region and fueling proposals for new office buildings from Route 128 to Cambridge and downtown Boston…In Boston, rents for top-rated space ticked up to $51.79. That represents only a slight increase from last year, but several large companies have recently committed to leasing new space in the city, including Natixis Global Asset Management and Sonos Inc., a wireless speaker maker.”

“’A lot of younger workers want to be in the city, and that’s very clearly driving companies’ decisions,’ said Bob Richards, a partner at Transwestern RBJ. ‘That trend is definitely deepening.’”

0 Office Tower Proposed in Downtown Boston in Winthrop Square

Is a new tower coming to downtown Boston, in Winthrop Square? Time will tell, but repurposing the shuttered garage site would be a welcome change.

rendering of new proposed office tower in boston financial district

Credit: The Boston Globe

According to The Boston Globe, the re-imagined tower “of up to 740 feet…would be a new centerpiece on the city’s rapidly changing skyline…The building would occupy one of the last major development sites in the Financial District, replacing a decrepit city-owned parking garage at Winthrop Square with a skyscraper that could cost as much as $900 million to build.”

The Globe article also includes a photo gallery of the proposed downtown Boston tower.

0 Government Center T Station Renovation Making Progress

T station renovations at Govt. Center in Boston

Credit: The Boston Globe

The Government Center T Station is taking shape.  The glass entryway will be a welcome change for both above and below grade.

From The Boston Globe:

“The most visible sign of progress at the Government Center Station renovation project is the construction of an entryway called a ‘head house,’ which is set to be wrapped in glass and promises to brighten the underground transit hub when it reopens in the spring of 2016.”

“‘I love the project,’ said Brian P. Howland, a resident engineer for the Massachusetts Bay Transportation Authority. ‘This is an area that hasn’t had anything happen to it in over 45 years. Putting something like this in this area now is going to have a huge impact.’”

0 ‘Get Paid While You Wait’ in Boston Real Estate

extra office space in boston for rent

Credit: Kinglet

If we’ve heard it once, we’ve heard it a thousand times: A company has outgrown its space and they’re growing. Fast. But, how much space will they need a few years from now is anyone’s best guess. Unfortunately, guessing games won’t cut it. Guess too low and they’re moving again in no time. Guess to high, giving them room to grow, and they won’t be able to afford the rent today.

Countless businesses have sprouted up to solve this challenge. The solutions include incubators and hubs, as well as daily and even hourly rentals, including relative newcomers LiquidSpace and Breather.

There’s another approach that’s picking up steam. Instead of downsizing, a host of new startups have enabled emerging companies to super-size their office space. Companies like PivotDesk and Kinglet, available only in Baltimore for now, help organizations rent out their extra desks, on a month-by- month basis.

While PivotDesk and competitors are still new, the approach isn’t. In fact, in the investing world, it’s an age-old approach known as dividend investing. And fans of this approach aptly refer to it as the “getting paid while you wait” model. Meaning, you buy the stock today and get paid a dividend while the stock slowly grows in value. In the office space analogy, you may only need 2,500 square feet today, but instead, go for 5,000 square feet and rent out the empty desks until you need team.

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0 Sonos Joins other Boston Tech Companies in Move to Downtown Crossing

Lafayette center in Downtown Crossing

Credit: LafayetteCCboston.com

Where are hip technology companies signing new leases?  DTX, Downtown Crossing!  Why?  It is a great value option with T access from Green, Orange, Red and Blue lines.

From the Boston Globe:

Instead of expanding in Kendall Square with the Googles and Amazons of the world, Sonos recently signed a lease to move into 170,000 square feet in Lafayette City Center, a downtown Boston office complex that long served as back-office space for State Street Corp.

“Once we saw Lafayette, it was clear to me that it was the best place for us,” said Andrew Schulert, vice president of quality at Sonos, which employs 375 people.

What Schulert saw was a resurgent real estate market in Downtown Crossing, where hip technology companies are joining new retail shops, restaurants, and upscale residential buildings. The interest among tech firms has benefited downtown landlords who are trying to replace dated department stores and other tenants that have left the area.

0 Downtown Crossing Farmers’ Market: Roche Bros. Can’t Wait

Roche Bros. farmers market in downtown crossing

Credit: Boston Business Journal

The newest tenant to downtown crossing has opened, kinda, even though their space isn’t ready yet.  Looking for fresh fruit an vegetables, stop by daily from 10 AM to 6 PM!

Roche Bros. to set up a farmers’ market outside of its coming Downtown Crossing location to introduce itself to the neighborhood until the store officially opens in early Spring, 2015.

According to a news release today, printed in the BBJ, “the grocer is setting up five fresh produce stands outside the historic Millennium Tower/Burnham Building where construction is currently underway on the company’s 25,000 square-foot flagship supermarket. The open-air offerings are scheduled to operate seven days a week, from 10 a.m. to 6 p.m. The produce stands will primarily feature fresh fruits, as well as some vegetables, flowers, and seasonal baked goods. The Roche Bros. team will keep the stands open through October.”

You can read the complete statement and related article on the Boston Business Journal’s website.

0 Boston Office Towers Experiencing Strong Leasing Activity

Internation place in Boston

One International Place in Boston

Some of Boston’s largest office towers have experienced strong leasing activity in either attracting new tenants or renewing their existing ones.  Some building highlight are the following commercial spaces:

·         One Financial Center – Owned by Beacon Capital
·         One Federal Street – Owned by Tishman Speyer
·         International Place – Owned by The Chiofaro Company
·         John Hancock, 200 Clarendon Street – Owned by Boston Properties

“A Boston Business Journal analysis of some of the largest towers in the city shows that many are enjoying their highest occupancy rates in years, although the good times haven’t come easy. Financial filings indicate these landlords have been working on overdrive to keep their properties filled, with many having to thread some impressive needles in order to head off or counter major lease expirations before they bite.”

You can view the BBJ’s status update “based on recent loan-servicer filings, on some of the biggest office properties in Boston’s downtown market,” here.