0 Boston Office Demand Remains Strong

Posted on June 17, 2014 by Wil Catlin

Credit: NAIOP

Our own Chris Sower participated in a panel discussion this morning in the Seaport for NAIOP. Demand showed little sign of letting up for office space in Boston through 2015. Tenant-in-the-market demand is up nearly 70 percent from 2012.

From Banker and Trandesman:

Greater Boston’s busy development scene shows little sign of slackening through 2015 with strong demand for commercial and multifamily properties, analysts predicted at an industry event Thursday. Tenants are in the market for 4.4 million square feet of office space in downtown Boston, an increase of 69 percent from 2012, said Rebecca Galeota, a senior vice president at Cassidy Turley. “The flight to urbanization only plays to the strengths of our city,” she said.

0 Boston Financial District: The Tech Hub?

Posted on May 28, 2014 by Wil Catlin

Boston financial district technology companies

Click to view the google map

No longer is the Financial District home to money managers, law firms and accounting firms. Now, tech firms are moving in to take advantage of the largest concentration of office space north of New York city combined with great infrastructure and competitive pricing. Tech Firms want fault tolerant power, redundant Telco and security that can accommodate companies on one floor. Class A towers have this option and are opening their doors and reposition themselves to attract this type of tenant. On a tour a property manager for a Class A tower had a new issue she had never dealt with before, a broken window from a floor hockey game from a new tenant. Problem solved, by her dedicated team of technicians, but that was a first.

An article on BetaBoston.com declares, “Boston’s Financial District, of all places, has emerged as a hotspot for the region’s tech startups.” The author reports finding “more than 30 tech companies large and small that occupy offices in the Financial District.”

The complete article, along with a complete list of tech companies in Boston’s Financial District, is available on the Boston.com offshoot, BetaBoston.com

0 Boston Commercial Real Estate: Rife with Office Space Renovations

Posted on May 12, 2014 by Wil Catlin

Office building at 230 Congress Street

Landlords in Boston continue to make considerable upgrades to their buildings as part of the ongoing courting process for new tenants. Beacon Capital has continuously made improvements to its Boston assets such as 1 Financial Center, and the newly acquired 230 Congress Street.

Another recent renovation is 177 Huntington Ave., following the departure of Wayfair. A Banker and Tradesman article notes some of the buildings modifications:

“To reposition 177 Huntington for new tenants, Beacon installed new art and signs and LED news strips in the elevator bays. On Monday, Varano Group will open a Caffe Strega breakfast and lunch cafe in the lobby. The owners wanted a name-brand restaurant operator to set the lobby apart, Gratton said.”

0 Boston Harbor: today, as it was meant to be

Posted on April 28, 2014 by Wil Catlin

Credit: Bisnow.com

One of our city’s most valued resources wasn’t always treated as such. Yes, our waterfront. Not only has this become a destination location for visitors, but now we have new residential communities and office buildings that are the new gateway to the water.

Bisnow offers a perspective on how the harbor used to be, and what it’s evolved into.

“[today], many of the region’s major developers and corporations…now see how valuable a beautiful waterfront can be. Rents are rising for offices and multifamily residences and commercial property sale values are hitting all-time highs.”

The full article, including a comparison of ‘old’ Boston Harbor to a “men’s locker room”, is available here.

0 Public Food Market Approved for Greenway

Posted on April 22, 2014 by Wil Catlin

Credit: The Boston Globe

This will be a great addition to community and Greenway. Looking forward to visiting when it goes live; the concept reminds me of the Ferry Plaza Farmers Market in San Francisco.

The Boston Globe reports:

“Plans for the year-round market along the Rose Fitzgerald Kennedy Greenway were approved Thursday night by the Boston Redevelopment Authority. The project, expected to cost $14 million, will include up to 45 vendors as well as a bakery, seafood raw bar, and demonstration kitchen staffed by local chefs….’For people who live close to the market looking for fresh produce, this is going to be a godsend,’ said Liz Morningstar, executive director of the nonprofit Boston Public Food Market, which will develop and manage the facility.”

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 Why are they leaving Waltham for Boston and Cambridge?

Posted on April 5, 2014 by Wil Catlin

Kendall Square commuters rely on the T to get to work in Cambridge, Ma

Credit: MIT

Why are the V.C. firms leaving Waltham for Boston? Is it traffic and higher priced rents? No, the customer is there. Downtown Crossing (DTX) has evolved to being a hot bed of new technology companies that wanted a few simple items. Rents; looking for an affordable option, DTX has Class B rents ranging from the mid to upper $20’s to the mid to upper $30’s PSF. The swing in price is due the specific location, the build out of the space and the condition of the overall building. In addition some buildings have a staffed lobby, while other operate on a key FOB system.

Location; emerging companies are competing for a hot commodity, talented staff. Location becomes a huge factor what that young employee doesn’t own a car and relies on the T to get them around. DTX is uniquely positioned at the Red, Green, Blue and Orange lines.

So, that is why the V.C. firms are moving back to the city to pay Class A rents that can start in the upper $40’s PSF and beyond?

The latest Venture firm to vacate Waltham for Boston or Cambridge? North Bridge Venture Partners.

From betaboston.com:

North Bridge Venture Partners, based in Waltham, is planning to move to Boston or Cambridge some time later this year, said general partner Michael Skok. “Our leanings are toward the Innovation District or Downtown, mostly based on entrepreneurs saying it,” Skok said.

The Betaboston.com article on North Bridge Venture Partners is available in full, 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 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 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)