0 Is Boston Properties’ Recent Selling Activity Noteworthy?

Boston office building at 100 Federal Street

Credit: BBJ

Boston Properties is selling; should we be worried?  No, we are seeing may other institutional investors pouring dollars into the Boston Class A office market.

The Boston Business Journal offers some historical context on Boston Properties’ market activities, “A Bloomberg reporter recently noted that the last time this happened, the company cashed out of significant real estate holdings just before the 2008 crash…[however] In their Boston presentation to investors, Boston Properties executives sounded anything but alarmed about markets. An unofficial transcript made available by Bloomberg to subscribers quotes company leaders speaking effusively about the Cambridge and Waltham markets and positively, if in a more-reserved manner, about the Boston market for high-end tenants.”

The complete BBJ article is available, here.

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

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.

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 State Requests Proposals for Parcel 13 in Back Bay

Back Bay Boston office space

Credit: BBJ

Is now the time for Parcel 13?  Well yes it is. Between residential, retail and office developments there is strong demand for more new development projects. Our city population continues to grow along with our daily workforce population.  More companies are seeking locations that allow their employees live, work play environments that don’t include driving, but rather rely on public transportation or models like ZipCar and HubSpoke.

From the Boston Business Journal:

Known as Parcel 13, the site represents 54,500 square feet of air rights over the Massachusetts Turnpike, adjacent to the MBTA’s Hynes Convention Center Station on the Green Line. State officials say the site will accommodate up to 320,700 square feet of development that could include a mix of housing, dorms, retail and hotel uses.

0 Boston’s Highest-Valued Commercial Real Estate, According to Uncle Sam

Hancock tower office building in Boston

Credit: BBJ

We all look up and see new office towers in Boston and an abundance of high-priced commercial real-estate, but what are they taxed for all of that luxurious space? According to the BBJ, “the city’s commercial tax rate is $31.18 per $1,000 of assessed value, down from $31.96 last year. For fiscal year 2014, which ended June 30, the city collected $1.1 billion in commercial tax levies. The assessed value of a property does not always reflect the actual value since the data is lagging. For example, One Beacon, the 34-story tower at the edge of the Financial District, recently sold for $561.5 million, but is assessed at $341 million.”

A slide show exhibiting Boston highest-taxed buildings is available on the BBJ, here.

0 Tech Companies Drive up Office Rent in Boston

google sign in Boston office

Credit: BetaBoston

Boston ranks 7th in office rent growth compared with 20 other cities over the last 24 months. The reason for the expeditious growth rate, according to a study released this week by CBRE Group Inc., and posted on Banker & Tradesman, is the “growth of high-tech employment [that] helped drive double-digit office rent increases in Boston over the last two years.”

More information is available on B&T’s website.

0 Boston Markets Blend History and Modernity

seaport office space in Boston at night

Seaport office space at 281 Summer St.

For a 400 year old city, we are experiencing record growth with billions being invested into new office, residential, and retail projects in areas of the city that were previously left for dirt lots or industrial space.

Bisnow.com, offers some historical perspective on the alternation and modernization of the hub over just the past decade:

“A decade ago, the waterfront—just across Fort Point Channel from the downtown Financial District—was still seen as the home of a languishing commercial port. Now the Seaport, aka the Innovation District, has new infrastructure, new buildings like Hanover’s (above), and a flock of cranes bringing more product online. Skanska is building a new HQ for PwC; State Street recently completed its relo into Channel Center; The Drew Co is quickly leasing apartments at Waterside Place; and The Fallon Co is selling super luxury condos on Fan Pier. The Seaport has come alive, Douglass says, with spectacular views and a condo market that’s heating up.”

0 Abstract Art Showcased in front of 225 Franklin St.

There is some new artwork in the Financial District across from the Langham Hotel.  Ab Initio, created by Brad Howe.  His work from 2011 to present can be found, here.

225 Franklin Street sculpture

Credit: BBJ

The Boston Business Journal notes, “the stainless steel work, titled “Ab Initio,” a Latin phrase meaning “from the beginning,” was created by Brad Howe, a native of Brazil who lives in California. It features splashes of black and red color as well as holes that allow pedestrians to see through it…’The holes enable you to look through so they can engage the city from more than one standpoint instead of something that is solid and blocks the view'”

Click through to the BBJ to read additional details on the work.

0 Downtown Crossing Redevelopment Progresses: Roche Bros. Nears Opening

office space in downtown crossing rendered

Credit: BBJ

The transformation of what was once the busiest pedestrian intersection in the city continues.  Roche Brothers answers the call to fulfill the long awaited hope for Downtown Crossing.

From the Boston Business Journal:

“renovation of the 102-year-old property began a year ago. Its restoration is part of Millennium Partners’ $689 million redevelopment of the shuttered Filene’s site. Adjacent to the Burnham will be Millennium Tower, a 625-foot building comprised of 442 luxury residences above 95,000 square feet of additional retail space on its lower floors.”

0 Blackstone Continues to Sell Boston Holdings

125 summer street in Boston

Office building at 125 Summer Street (click for details)

Our city is on the move, and along with it, some noteworthy addresses. 100 High Street and 125 Summer Street are the latest towers to announce that they are under agreement to be sold by Equity Office, Blackstone.  The sale is expected to close in September.

The BBJ, reporting on Blackstone’s portfolio activity, notes “the private equity firm, which acquired its Greater Boston property portfolio in 2007 when it bought Equity Office Properties Trust for $39 billion, has reached an agreement to sell five office properties in Greater Boston to a Canadian real estate investment firm. The deal is the latest move by New York-based Blackstone as it disposes of the local real estate portfolio it bought before the financial crisis.”

More information is available on the Boston Business Journal’s coverage, here.