0 Boston Office Market Maintains Strong Results for Landlords

Posted on April 10, 2014 by Wil Catlin

155 Federal Street

The Boston Office market continues to produce strong results for landlords. The low rise Class A and Class B market in the Financial District continue to offer a value option to prospective tenants.

According to news site, news.gnom.es, “First quarter 2014 marked Greater Boston’s fourth consecutive quarter of positive absorption. The market also posted its highest four-quarter positive absorption total since 2007, with 3.6 million square feet absorbed from second quarter 2013 through first quarter 2014.”

The article quotes 542,000 SF of positive adsorption in Boston in the First Quarter. You can read the full article, here.

0 Boston Office Market is on Fire!

Posted on March 13, 2014 by BonnyDoorakian

office space at 109-129 Kingston Street in Boston

WOW! This market is on fire ! I haven’t seen the market this competitive for tenant’s trying to lease office space in years !! The last several commercial office lease deals I have done in Boston have ended up with multiple tenants competing for the same space. My advice to tenants out there is to keep your options open, choose more than one possible option when looking for office space because you never know when you may be out bid. If you find a space you love, just grab it quickly, time is of the essence in today’s market.

Follow the link to view available office space in the downtown area: Boston commercial office space

If you’d like any assistance, have questions, or would like to schedule a showing, please contact Bonny L. Doorakian at bdoorakian@bradvisors.com, or by phone at 617.850.9655 (tel), 617.763.2919 (cell).

0 Office space for the Modern Company

Posted on March 13, 2014 by Wil Catlin

Credit: Banker & Tradesman

What does creative space look like to up-and-coming startups? In short, it’s a collaborative environment with as much natural light as possible. Young companies need to provide an attractive work atmosphere for new hires, while offering something refreshing to their existing workforce.

For example, Tim Coburn, CEO of Boston startup Jebbit, in an article for Banker & Tradesman, wrote:

“Fostering collaboration: We really wanted something open and the tower of the Landmark building, where we are now located, offered 360 views of the city, big windows, bright light and open space – it was so different from everything else we looked at. It didn’t feel like a “classic office” and for us, that fit. Today we have orange bean bag chairs in the middle, for group meeting or conversation, and it’s wide open with a lot of desks around windows. White boards everywhere help us brainstorm on the spot.”

Tim Coburn’s article is published on Banker & Tradesman, here.

0 Commercial Development in Boston is Strongest in Years

Posted on March 13, 2014 by Wil Catlin

office tower in Boston on Boylston Street

Credit: The Real Reporter

Office development within Boston is at its strongest in years, some might even say ever. Most of what we are seeing is large residential projects, but Boylston Street continues to evolve with 888 Boylston St. breaking ground this spring, which will add to the 3.2 million square feet of office space that’s part of the Prudential complex.

The BBJ, reporting on a panel discussion hosted by NAIOP, printed the following:

The group agreed that a perfect storm led by the Big Dig’s completion, a growing population, a flood of Baby Boomers who want to return to the city, lower unemployment and a rush of foreign capital is lending to the city’s multibillion-dollar development pipeline.

“We are seeing an unprecedented amount of development going on all around in the city … and many of these projects are very large, complicated developments that we haven’t seen in 20, 25 years,” said Raiz Cassum, the event’s moderator and a senior managing director at HFF. “

The full article is available on the Boston Business Journal.

0 Boston Office Space 2013: Year End Review

Posted on March 4, 2014 by Wil Catlin

Boston’s Financial District attracted positive demand in 2013 as Class B properties and Class A commodity space continue to benefit from the lack of prime availability. Tenants flocked to the Financial District from supply constrained markets like East Cambridge, the Back Bay and Seaport. This demand saw year over year rents increase in excess of 20% in the Class B market. Many Landlords are capturing this demand by proactively renovating and upgrading suites to open concept, spec suites that offer today’s tenants ready-to-go spaces with more flexible lease commitments. The red line continues to be the main driver and 2014 is poised to see a true renaissance of Boston Downtown Crossing neighborhood. Boston’s transportation hub is spurred by the new Millennium Tower redevelopment of the Filene’s Basement site. This area will continue its transformation as a hub for new and emerging companies. Expect rising rental rates and continued demand to drive some Class B building owners to complete capital improvement projects and upgrade second generation spaces to compete for tenants.

Boston office space price over past 5 years

Credit: CoStar

Vacancy & Rental Rates: Overall 2013 saw tenants absorb over 1,000,000 SF square feet of commercial office real estate in Boston’s Central Business District. The Class B office market in particular saw 322,258 SF of absorption in 2013 bringing the vacancy rate to 8.0 percent. This trend of positive absorption has continued over the last 8 quarters resulting in the increase of asking lease rates for class B product to an average asking rate of $31.08 per rentable square foot. Supply constrained markets like the Back Bay and Seaport continue to impact market fundamentals by increasing demand in other areas of the city like the Financial District resulting in further recovery in rental rates reviling pre-recession pricing of early 2008.

Demand Driver: Class B real estate activity provided a look into the dynamics of the Boston economy and leasing activity suggests that Boston is not slowing down and expected to continue with compound annual rent increases excess of 10 percent through 2015. As the value play alternative, the Class B Financial District market continued capitalizing on rising Class A rents combined with limited supply in the Seaport, Back Bay and East Cambridge. This is most evident within the Financial District where tenants seeking value have poured into buildings with great T access like Downtown Crossing.

Outlook: Healthy fundamentals persist in submarkets like the Back Bay, Cambridge and the Seaport District and demand appears to be spilling into neighboring submarkets. Continued growth and positive indicators seen regionally mixed with the most optimistic confirmation of stock market and national employment data seen since 2007 suggests further gains in employment and real estate occupancy in coming quarters. With some of the regions most desired locations becoming market wide choice-constricted and no speculative construction underway market wide, many expanding tenants will increasingly consider peripheral locations and other creative solutions with rent levels adjusting to changing demand trends.

0 Creative Office Lofts in Boston

Posted on March 3, 2014 by Wil Catlin

Recently, I have experienced an incredible demand for what I call “cool creative loft office space in Boston” from tenants in the market. I represent a lot of landlords who offer this type of space and on more than one occasion have had several competing offers for space. This trend in the market just re-enforces what I have heard in recent news that a company’s work culture and collaborative creative atmosphere is the top priority to the Boston area’s newest and freshest young innovators.

Please see the two links below to view some of the many opportunities I have in the market:

http://www.bradvisors.com/building/listing_sheet/451/109-129kingston.pdf

http://www.bradvisors.com/building/listing_sheet/454/36bromfield_lo_res.pdf

0 14 Boston Startups Land Free Office Space

Posted on March 3, 2014 by Wil Catlin

Credit: Boston.com

What 14 startups are on the move in Boston that just scored space at International Place?

Boston.com reported that “PayPal’s Boston office is filling its Start Tank with a new set of early-stage ventures. Created in 2012, the Tank offers entrepreneurs free office space in downtown Boston, along with mentorship from PayPal employees and seminars. Companies are welcome to stay for six months to a year; this is the third crop of businesses that the Start Tank has housed.”

To read the list and links to the 14 Boston startups that were selected, click over to Boston.com

0 Definition of Class A Office Space

Posted on March 3, 2014 by Wil Catlin

What defines Class A office space?

According to CoStar, Class A office space is defined as follow:

In general, a class A building is an extremely desirable investment-grade property with the highest quality construction and workmanship, materials and systems, significant architectural features, the highest quality/expensive finish and trim, abundant amenities, first rate maintenance and management; usually occupied by prestigious tenants with above average rental rates and in an excellent location with exceptional accessibility. They are most eagerly sought by international and national investors willing to pay a premium for quality and are often designed by architects whose names are immediately recognizable. A building meeting this criteria is often considered to be a landmark, either historical, architectural or both. It may have been built within the last 5-10 years, but if it is older, it has been renovated to maintain its status and provide it many amenities. Buildings of this stature can be one-of-a-kind with unique shape and floor plans, notable architectural design, excellent and possibly outstanding location and a definite market presence.

Some notable Class A buildings in Boston:
John Hancock Tower: 200 Clarendon Street
Bank of America: 100 Federal Street
Prudential Center: 800 Boylston Street
Federal Reserve Plaza: 600 Atlantic Avenue
Exchange Place: 53 State Street
One Federal Street: 1 Federal Street
One Financial Center: 1 Financial Center
100 Summer Street: 100 Summer Street
International Place: 1 International Place

0 Usable vs. Rentable Square Feet

Posted on March 3, 2014 by Wil Catlin

So what does it all mean? Here’s a quick explanation of the difference between usable square feet and rentable square feet, along with calculation for it – courtesy of 42floors.com:

Usable square feet
The exact square footage of the commercial space you’re leasing. This refers only to those facilities that your company will exclusively occupy, including office space, storage space, and private bathrooms.

Rentable square feet
Rentable square feet is calculated by taking the actual usable square footage and adding a percentage of the common areas.

The Calculation The formula to determine the USF and the RSF are: RSF = USF X (1 + Add-On %)
Add-On % = (rentable SF / Usable SF – 1)

0 Government Center T Stop to Close for Two Years

Posted on February 18, 2014 by Wil Catlin

Credit: Boston Globe

Planning your new commute to Boston City Hall? The Green Lines Government Center T Stop is scheduled to close on March 22nd for two years.

An announcement from the MBTA on Wednesday, reported in the Boston Magazine, notes “that Government Center Station at City Hall Plaza would be closing down for two years beginning on March 22, so that the transit agency can begin repairs and upgrades to the stop, and improve connections between the Blue and Green Lines.”

The article includes the following quote from the MBTA:

“If your trip usually included Government Center Station, please allow an additional ten to fifteen minutes for your travel,” according to the T. “The bus will make stops outside State Street Station, Government Center Station, Bowdoin Station, and then return to Haymarket. No fares will be collected on the shuttle bus.”

You can read the full Boston Magazine article, here.