0 Boston Office Space Closes Out 2015 with Peak Rents

Posted on March 14, 2016 by Wil Catlin

office rent prices in Boston over the past few years

Credit: B&T

According to our research office rents will continue to grow through 2017 within the greater Boston market. On top of that, construction costs continue to climb while tenant improvement dollar’s decline and rent abatement all but disappears.

From Banker & Tradesman:

Rents in Class A downtown office towers jumped 7.4 percent in 2015, with a nearly 4 percent jump in the last three months of the year, according to Lisa Strope, New England research director for JLL.

Leasing activity downtown leaped 18 percent during the fourth quarter.
The average rent for top-shelf office space in Boston ended 2015 at just under $61 a square foot, up from $52 at the end of 2013.

“Suddenly downtown is looking good to a lot of people,” Strope said.

0 The Role of Acoustics in Commercial Design

Posted on February 11, 2016 by Wil Catlin

Meter to meaure acoustics of office space

Credit: Boston Globe

The average rentable square feet occupied per person has dropped as more companies offer an open work environments with break out rooms for meetings an personal calls. This has resulted in a new market for sound engineers trying to create the delicate balance of sound mitigation. Too many hard surfaces wont absorb sound so the engineers use technology to assist with this.

This is where a company like Acentech Inc. can help. A Cambridge acoustics consulting firm that was once part of the famed tech pioneer BBN Technologies, Acentech uses sophisticated computer-generated audio simulations called “auralizations” that make it possible to hear a building before workers ever break ground.

“Auralization is acoustic rendering,” said Matthew Azevedo, an Acentech engineer. “An architect would never tell a developer ‘Here’s the floor plan, just imagine what it’s going to look like.’ Well, we feel the same about acoustics.”

“Architects love these big, open spaces with lots of glass and exposed steel and all these wonderful hard surfaces,” Azevedo said. “Our job is to make it behave acoustically like a theater.”

You can read more about Acentech and acoustic engineering in Boston office development on the Boston Globe.

0 Boston Office Market Maintains Impressive Growth

Posted on February 9, 2016 by Wil Catlin

Credit: JLL

Office rents continue Northward while vacancy works Southward in Boston’s office Market. We will continue to see rent growth through 2016 as tenants continue to demand more space.

According to Globest, “the strong job market is fueling tenant demand and positive space absorption in Boston and surrounding areas such as Cambridge and the Route 128 markets. The office vacancy rate for Greater Boston ended 2015 at 12.1%, virtually flat as compared to year’s-end 2014. The average vacancy rate for 2015 was 12.2%, the lowest rate since 2002. Class A asking rents in the region rose to $42.06-per-square-foot. Asking rents haven’t been that high since 2002, Transwestern reports.”

You can read the full article on its website.

0 Boston Office Market Shows Strength in 2015

Posted on February 1, 2016 by Wil Catlin

Credit: Boston Real Estate Times

The region’s office market continued its upward push with rents climbing while vacancy continues to decline.

A Boston Real Estate Times article includes the following highlights to express the market direction:

Market-wide vacancy averaged 12.2 percent for 2015, the lowest annual average since 2002. Vacancy for the quarter remained steady from third quarter at 12.1 percent.
Class A asking lease rates topped $42 per square foot for the first time since 2002, reaching $42.06 in fourth quarter, 3.9 percent higher than first-quarter 2015.
Boston’s Central Business District had 502,000 square feet of absorption in fourth quarter and totaled 1.58 million square feet for the year, the highest annual total since 2006.
Vacancy in Boston’s Seaport District dropped to 8.3 percent, its lowest level since 2000, when inventory was 6 million square feet smaller than today.
Cambridge closed the quarter at a remarkable 2.7 percent vacancy, its lowest mark on record.
There was 314,000 square feet of positive absorption in the Route 128 submarkets and 328,000 square feet in the Interstate 495 submarkets.

0 BBJ Posts Interactive Map of Boston’s Largest Construction Projects

Posted on February 1, 2016 by Wil Catlin

Boston is rising! We are witnessing one of the city’s largest building booms and the attached map, courtesy of the Boston Business Journal, lays out all of the active sites.

Credit: BBJ

0 ‘First’ Boston Office Skyscraper gets New Owner

Posted on January 5, 2016 by Wil Catlin

Credit: Wikipedia

The Ames Building at 1 Court Street will be getting a new owner. The building is known as the Boston’s “first skyscraper”.

From Wikipedia:

The Ames Building is a skyscraper located in Boston, Massachusetts. It is sometimes ranked as the tallest building in Boston from its completion in 1893 until 1915, when the Custom House Tower was built. However, the building was never the tallest structure in Boston. The steeple of the Church of the Covenant, completed in 1867, was much taller than the Ames Building. Nevertheless, it is considered to be Boston’s first skyscraper.

Located at 1 Court Street and Washington Mall in downtown Boston, the Ames Building was designed by the architectural firm of Shepley, Rutan and Coolidge inRichardsonian Romanesque and paid for by Frederick L. Ames. It is the second tallest masonry load bearing-wall structure in the world, exceeded only by the Monadnock Building in Chicago, completed that same year.[2] It is thirteen stories high with a three-story granite base and sandstone and brick. The sandstone is from the Berea formation in Ohio and was supplied by Cleveland Quarries Company. Construction was completed in 1889, but interior work was not completed for occupancy until 1893. It became the corporate headquarters for the Ames families’ agricultural tool company.[3]

The Ames Building was added to the National Register of Historic Places on May 26, 1974.

0 Boston’s Building Boom Modernizes Skyline

Posted on January 5, 2016 by Wil Catlin

Credit: Curbed

Credit: Curbed[/caption]

What do you think about some of Boston’s newest buildings gracing our skyline?

According to Curbed, Boston “is in the midst of adding about 8,000 new apartments and condos over the next three years, doubling the amount built in large luxury complexes since the 1960s. Just last year, the city approved construction projects totaling more than $3 billion. By the beginning of 2015, some 14.6 million square feet of new buildings were rising in Boston.

You can read the full article on Curbed.com

0 Boston Office Demand Poised for Best Year Since 2007

Posted on October 12, 2015 by Wil Catlin

The office market continues its upward push with the best year since 2007 and no signs of letting up. Increased rents combined with fewer tenant improvement dollars, increased construction costs and limited rent abatement make the total occupancy cost even higher.

Credit: BBJ

From the Boston Business Journal:

At 13 percent vacancy, Greater Boston notched the eighth-lowest office vacancy rate in the third quarter. That rate has stayed relatively flat, dropping just 0.2 percent year-over-year, the Reis report said…The increased demand for office space is driven by continued gains in the labor market, Reis said.

“Over the last seven years, not only has the number of total jobs created per month gradually increased, but the number of higher-wage, office-using jobs has also increased,” Severino said. “The labor market clearly shifted into a higher gear in 2014 and that is beginning to have a more consistent and material impact on the office market. Vacancy compression is poised on the precipice of accelerating in the next year or so.”

0 BRA Approves Six Office Building Projects in Boston

Posted on July 27, 2015 by Wil Catlin

Credit: Boston Globe

Six buildings in Boston’s Financial District, Congress Square, are set for complete renovation by Related Beal.

According to the Boston Globe, the BRA approved six projects in total, “the agency gave the go-ahead to some $515.6 million in development…One of the biggest projects is Congress Square, the renovation of an entire city block of buildings in the Financial District, between Congress and Water streets. Developer Related Beal plans to turn six office buildings into a boutique hotel, new housing, and office space…Also approved was Clippership Wharf, which would put 492 apartments and condos on 12 acres on the waterfront in East Boston. Developer Lend Lease plans to move forward on the long-stalled project and won approval to add housing units and subtract parking spaces from a plan approved in 2003.”

You can read the full article on the Boston Globe, here.

0 New Boston Skyscrapers will Make — or Brake — the Skyline

Posted on July 13, 2015 by Wil Catlin

Copley square office buildings in Boston

Credit: Boston Globe

The greater Boston audience has an opinion about just about anything, including our skyline. This poses a challenge to Boston’s strongest developers and architects to reshape our city into something elegant, energizing, and functional.

From the Boston Globe:

No matter how elegantly they may be paved or planted, urban plazas are boring, windy, and little used, especially in weather like ours. The Prudential, back before its Arctic plazas were filled in with shopping arcades, was a good example. The Federal Reserve Bank, next to South Station, is another. It’s a handsome, eloquent Diva tower behind a plaza that has the charm of a recently abandoned battlefield.

As far as the public is concerned, cities aren’t made of buildings and plazas, anyway. Cities are made of streets and parks. From the point of view of urban design, the buildings are there to shape those public spaces and feed them with energy.