0 Does Boston’s Financial District Office Market have a Bright Future?

Boston's financial district office buildings fill the skyline

Image Credit: fineartamerica.com

Yes, the Financial District can rest assured it will live to lease more space. Remember, this is the largest concentration of office space north of New York City, combined with great access via water shuttle, commuter rail, T, bus or car. Change is inevitable, however, and the Financial District landlords will need to continue with capital upgrades and tenant amenities to meet what today’s TAMI tenants and traditional tenants are seeking.

Banker and Tradesman notes, “the booming tech market has provided a lifeline of sorts, with a range of companies from established firms to startups decamping from more expensive space in Cambridge and its environs to the more budget-friendly lower floors of the Financial District’s tall timber, almost all of it built in the 1960s, ’70s and ’80s.”

Related Office Space Listings
Office space for lease in Boston Financial District

0 Class B Office Space in Downtown Crossing Could Net $50M

Financial district boston office building

Credit: BBJ

Class B office space at 258-262 Washington St. and 85 Devonshire St. in Downtown Crossing could fetch in excess of $525 PSF. The Class B office market in the Financial District has seen strong rent growth over the last 36 months with prices ranging from the upper $30’s to the upper $40’s PSF.

From the Boston Business Journal:

The buildings together encompass about 92,000 square feet and span the stretch of Water Street between Washington and Devonshire streets near the State Street MBTA stop…Boston-based real estate investment and development firm KS Partners owns the property and has invested more than $5 million in the past three years to help rejuvenate it.

Marketing materials obtained by the Business Journal indicate that the the Washington and Devonshire property is “one of the last Downtown Class B repositioning opportunities” that is “an opportunity to capture momentum” for retail repositioning along Washington Street. The stretch of Washington Street fronts the Freedom Trail and is currently leased by a Subway and a Vitamin Shoppe.

0 125 Summer St. Poised for ‘Big Upgrade’

Summer Street commercial real estate in Boston

Credit: BBJ

The Boston office market is seeing strong rent growth in all classes and in all CBD submarkets. Landlords continue to try to differentiate their buildings by offering amenities and upgrades. Oxford is making a big splash in this space with lobby upgrade at 125 Summer Street in the Financial District.

According to the BBJ, Oxford is planning “a $10 million project to upgrade the building’s ground floor and lobby and reposition the entrance of the building to the confluence of Summer and High streets. The renovation was designed by ADD Inc., now with Stantec, while Turner Construction Co. is the general contractor…Oxford [recently] teased the renovation by erecting a two-story kelly green and navy blue banner at the site of what will become the entrance to 125 Summer St. with an all-caps proclamation: “Something big is coming.”

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

Property Detail Page
125 Summer Street

0 Tech Companies Heading to Downtown Boston

downtown crossing offices

Credit: BBJ

Location, Location and Location.  The largest concentration of office space north of NYC is Boston’s Financial District and including in its size is easy access by commuter rail, T, Boat, bus and yes, car.

The tech audience seems most attracted to the proximity to the Red Line; with quick access to E. Cambridge and Kendall Square, and prices that are 10% – 20% less in comparable asset classes, the market’s appeal is strong.

According to the BBJ, “In the city’s post-recession economy, more than 2.1 million square feet of professional services, law firms and consultancies have vacated the traditional downtown neighborhood for a spiffier Innovation District address. But at the same time, some 1.8 million square feet of technology, advertising, media and information-based companies — also known as TAMI tenants — have flooded into downtown and the area around North Station.”

Additional information is available on the Boston Business Journal’s website, here.

Related Available Office Space
Boston financial District office space for lease

0 Eight Proposals Compete for Winthrop Square in Boston

proposed buildings in Winthrop Square in Boston's financial district

Credit: Curbed Boston

According to Curbed, plans to plunk one of Boston’s biggest real estate developments in living memory on the squat Winthrop Square Garage took a big step forward on Wednesday, with the city transferring garage ownership to the Boston Redevelopment Authority. The agency will now set about in earnest choosing a developer for the project” from the following eight proposals – click through to Curbed Boston to read more about each submission:

  • Millennium Partners
  • Thomas O’Brien
  • Accordia Partners
  • Hudson Group North America
  • Trinity Acquisitions
  • The Fallon Co.
  • Steven Belkin of Trans National Properties
  • Lincoln Property Co.

0 Boston Global Investors Moves Offices to Seaport

office building at 1 Post office square in Boston

Credit: Boston Business Journal

Putting their money where their mouth is, Boston Global Investors is moving to the Seaport.  They will be moving to Block H along Seaport Boulevard once construction is complete on their 6,00 square foot parcel.

From the BBJ:

Boston Global Investors will move its headquarters from its current office at 1 Post Office Square in Boston’s Financial District to the Seaport…The firm last week spent $2.21 million to buy a 6,000-square-foot parcel at Seaport Square’s Block H, located along Seaport Boulevard…a four-story office is under construction at the site, and Hynes said Boston Global Investors will relocate there when construction is finished.

With the final parcels trading hands last week, Seaport Square’s 23 acres have officially sold for $665.2 million since 2011. The parcels were originally acquired in 2006, in a deal spearheaded by Hynes with financing from Morgan Stanley, for $203.75 million.

0 Microsol Announces Expansion, Move to Boston Financial District

Microsol logoRyan Hurd of Boston Realty Advisors assisted Microsol with their Boston expansion.

From PR Newswire:

Microsol Resources Corporation, an Autodesk Platinum Partner and a recognized leader in CAD and BIM Solutions serving the architectural, engineering and construction industries, is pleased to announce the move of its Boston office to a new location in the heart of the Financial District. Located on the tenth floor of 2 Oliver Street, the new facility features a state-of-the-art training center, capable of handling classes of up to 10 students.

“With the expansion and move to our new office at 2 Oliver Street we will be able to increase our ability to support the growing number of clients we have, not just in Boston and the Boston Metro area, but also in New England in general,” said Emilio Krausz, President, Microsol Resources. “We are now just a short walk away from the offices of many of our current and future clients and from South Station.”

0 PwC Migrates to Seaport High-Rise Office Space

rendering of new Seaport office space for PwC

Credit: Boston Business Journal

PwC is the newest tenant to migrate from the Financial District to the Seaport.  Having their home on High Street of 376,650 square feet to settle into 333,500 might seem like a downsize, but in fact, they are simply more efficient.  The use of hot, swappable workstations will be one of the key drivers to the firm requiring a smaller footprint.

According to the Boston Business Journal, “the company moved into the space Tuesday from its former Boston headquarters at 125 High St. It occupies all but four floors of the building, located at the intersection of Seaport Boulevard and Boston Wharf Road. One floor houses a 4,000-square-foot gym that’s free for all employees, while the street level will eventually feature retailers. The glass exterior of the building, on which the firm has a 15-year lease, features a PwC logo. The lobby at PwC’s new location on Seaport Boulevard in Boston takes advantage of natural light.”

You can read the full article on the BBJ’s website.

0 Boston Developers Eye Financial Tech Sector

Rendering of modernized Boston Financial District

Credit: Bisnow

The newest Tech-friendly office tower could be a crucial differentiator in Class A Financial District office space, with delivery in 2020.

According to Bisnow, Trans National CEO Steve Belkin and EVP (development) Justin Krebs want to help Boston become a global financial/tech innovation cluster…proposing “a $900M tower downtown that would include an elaborate two-story 22,500 SF Entrepreneurial Innovation Center that’s free to the public. They hope that the space where financial services pros, tech talent and university folk join forces will help elevate Boston’s brand as a global hotbed of financial innovation. Steve, an entrepreneur who’s launched 30 companies of his own, is also answering Mayor Walsh’s call to help make Boston the world’s innovation leader by 2030.

You can read the full article on the Bisnow website.

0 Updates Coming to Boston’s Financial District

rendering of congress street redevelopment

Credit: Bizjournals.com

More new retail, office and hotel options are coming to the Boston Financial District, centered around the intersection of State Street and Congress Street.

According to the BBJ, the Boston Redevelopment Authority’s agenda for its Thursday City Hall meeting includes the following projects:

  • A public hearing to discuss a proposed 23-story, 346-room“micro hotel which is designed to meet the changing needs/habits of today’s urban travelers” at 240 Tremont St. in the Theater District.
  • A public hearing to discuss Simon Property Group’s (NYSE: SPG)residential and retail expansion projectat 5 Copley Place, a proposed 52-story tower that includes 542 units of residential space spanning 680,000 square feet, a 54,000-square-foot addition to Neiman Marcus and a 60,000-square-foot addition of restaurant and retail space.
  • Scheduling a public hearing about Related Beal’s Congress Square project.
  • Approving and extending the Simmons College institutional master plan in the Fenway neighborhood.