0 Office Design: Trend to Traditional Aesthetics Favor Open Layouts

Office space design

Interior of 312-316 Stuart Street office space in in Boston

What does your office look like?  Are you working within an open plan or a private office model?

Banker & Tradesman describes the contemporary office motif, which “often comprise one or two wide open spaces with desks or tables that, at the most, have cubicles a seated employee can see over into his or her neighbor’s cubicle…Often, the spaces resemble a trading floor, sometimes hectic, sometimes measured in its activity. Along its edges or at the ends of the rooms are shared conference rooms, beside which smaller private rooms can offer a mostly soundproof space for personal phone calls or meditation. These kinds of spaces have very few private offices, if any, even for the company’s executive team. And many times those conference rooms and the desks provided are empty since mobile technology allows workers to do their jobs at home or on the road.”

This scene, described by Banker & Tradesman, is growing application and increasing in appeal. The full article can be found on B&T’s website.

0 BRA Approves $2.3B in New Projects

BRA approves new projects in downtown Boston

Credit: Boston Business Journal

So what does $2.3B look like in the City of Boston? We’ll soon find out. The BRA has just approved seven new projects collectively totaling $2.3 billion.

The Boston Business Journal published a gallery showcasing each of the seven projects. You can view the gallery via the following link: BBJ Slide Show.

 

 

0 Boston Ranks 2nd in Construction Jobs

Construction on Boston office spaces

Credit: Boston Globe

Greater Boston is 2nd to Los Angeles in new construction jobs, beating Houston, Atlanta and Phoenix. Employers and employees want to work live and play in our beautiful city.

According to the Boston Globe, “since August 2012, construction activity and employment have jumped. The Boston metro area added 8,700 construction jobs, compared with 8,900 in Los Angeles and 8,200 in Houston…Driving this surge are several factors, including the strength of Boston’s technology, biotechnology, and medical industries, pent-up demand for housing, and improved credit conditions that have made financing available for commercial construction.”

What we’re experiencing is the revitalization and creation of communities that cater to the changing demands of today’s workforce, while offering all aspects of a residential community that includes schools and grocery stores. Thank you to our construction industry for making this happen.

The full Globe article is available to subscribers, here.

0 Boston Office Towers: Occupancy Drop; Rents still Climbing

State street offices in Boston

28 State Street – Office Building

Where is the value in office space within Boston? Low and mid-rise Class A.

Tenants in recent years have worked on space efficiency like State Street with their new facility in the Seaport, which will have less than 100 square feet per employee. Additionally, tenants have sought out a flight to quality by moving up in floors during the recent economic downturn and locking in rates for a longer term.

The Boston Business Journal cites a survey by Jones Lang LaSalle, “which examined 46 towers in the Back Bay, Financial District and the Seaport, found 22 buildings where occupancies dropped, while 21 saw increases and three were flat, year-over-year. Within the 31.8 million-square-foot office market, 5.7 million is available to lease – the equivalent of three John towers.”

More information from the survey is available on the BBJ’s website.

0 Tech Sector Hoping Walsh can Keep Downtown Office Space Affordable

200 High St. Boston

Office space at 200 High Street in the Financial District

Mayor Menino departs in January for Mayor Elect Walsh.  Will our economy grow and prosper with the next administration?  Well, it is a delicate balance that will spur development while maintaining affordability.

Boston.com posted a dense, thought-proviking piece examining the impact of the mayorial change on small business locations and city-based office space. Here are a few notable quotes from the article:

I spoke with a half dozen tech entrepreneurs about their hopes for and expectations of the incoming Walsh administration, and picked up on two major themes…They want the new mayor to help keep office space affordable and to improve public transit in the Innovation District.”

IdeaPaint president John Stephans told me his business, which is moving from Ashland to Boston in January, would have liked to relocate sooner but found the cost prohibitive until it enjoyed several successful years.

“We always wanted to be in the city, as do a lot of companies,” he said. “But I think companies feel priced out, especially young, venture-backed start-ups.”

The full article is available on Boston.com, here.

0 Real Estate Developers Voice Case for Tax Breaks

Fenway Center

Credit: The Boston Globe

Are you in favor or opposed of tax relief for construction projects? A Boston Globe editorial addressed the issue of added tax relief for construction projects, noting “the developer of Boston’s ambitious Fenway Center development is seeking $7.8 million in city tax breaks to proceed with construction, saying the $500 million mega-project could fall apart without urgent public assistance.”

The full Globe article, available here, further explores the issue.

0 Ma Commercial Real Estate Development Ranks 7th

Office space development and construction in Boston

Credit: Boston Business Journal

Our city is growing and adding more office, industrial, warehouse and retail space. This translates into construction jobs, followed by permanent jobs once the new facilities are built and occupied.

The local angle is detailed in the Boston Business Journal:

“The commercial real estate market’s continued rebound has pushed Massachusetts up two notches to 7th overall when it comes to construction spending among U.S. states, according to a new study by the NAIOP Research Foundation…Spending in the Bay State to build office, industrial, warehouse and retail space totaled $1.78 billion and supported 49,653 jobs in 2012, according to NAIOP.”

Follow the link for additional Boston Commercial Leasing Trends.

 

0 Santander Officially Absorbs Sovereign Bank Name

Santander bank logoWhat your bank called?  Walking down Boylston Street yesterday I couldn’t help but notice the temporary signs at the Sovereign Branch. Well, as we seen in the past, we will witness the retirement of another bank name today; Sovereign Bank will officially be called Santander from this point forth.

Some history about another Boston Bank, Bank of Boston.
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0 New Construction at South Station

south station

Credit: Boston Business Journal

This is not your corner drugstore, CVS will be opening a new 30,000 square foot store at South Station. CVS is among a number of new retailers going in at the Boston transportation hub.

The Boston Business Journal reported some details on the new South Station arrivals, stating “CVS was paying in the $40 range per square foot for a 30,000-square-foot space on two floors, while Tavern in the Square has locked up 780 square feet at $150 per square foot. Starbucks, with 150 square feet, and Barbara’s Bookstore, with 300 square feet, also are paying about $150 per square foot.”

The full BBJ article is available, here

Available Office Space
South Station and South Boston Office Space

0 Boston Office Rents Climb 3.5 percent

Boston Offices for lease

Credit: Boston Herald

This is only part of the story. True, rental rates have risen, but the overall occupancy cost has risen even more than just the rental rates. In a rising market, like we are currently in, landlord’s contribute less in tenant improvement costs and offer much less rent abatement. This then translates into a higher occupancy cost. During a down market, a landlord could offer 125 percent of the first years rent to go improvements of the space, that number now could be 75 percent of the first years rent.

The Boston Herald’s analysis notes “office rents in Greater Boston grew at an even higher rate — 3.9 percent — primarily due to strong growth in Cambridge, downtown Boston and the northwest submarket, the report found. And rents may begin to rise at an even faster rate because employment levels in office jobs are reaching pre-recession levels.”

The Herald article can be found here: Hub Office Rates Jump