0 The Right Time to Move into a Larger Office Space

Posted on December 15, 2014 by Wil Catlin

Credit: Grrouchie.com

Simply put, you know when your business should move into a more formidable space when your business demands it. This might mean annual cost or it might mean image, either way understand what is important to your organization and what amenities are necessary; cost is not always the driver.

Entrepreneur.com offers some general guidance for Boston businesses on the move:

“First, you’ll need to interview several real-estate brokers who have experience in the area where you’d like to rent. Second, identify exactly how much space you’ll need now and in the near future. Factor in growth, but be realistic in your estimate and don’t take on much more space than you need. Then you and the broker can begin looking for spaces that meet your space requirements, budget, location and office layout. Once you find a space you’d like to lease, then you should hire a real-estate attorney to review the agreement.”

0 Spec Office Construction Coming to Boston

Posted on December 4, 2014 by Wil Catlin

Spec office construction is coming to Boston In 2015 – for who? Well, not for the smaller companies, their footprint would be far smaller than the new construction Class A can accommodate. The recent 4 quarters has seen a tremendous migration to the Financial District from the Seaport and East Cambridge for the value oriented office tenant. Rent within the Class B market still fall within the mid to upper $30’s per square foot.

Banker & Tradesman offers some perspective on the market shift in downtown Boston, noting “the office market continues to recover from the 2008 downturn because of an expanding tech sector and relocations of companies from Cambridge and the suburbs. Recent acquisitions of trophy office towers in Boston and Cambridge reflect the continuing interest of foreign investors seeking higher yields than government bonds, panelists said. In 2015, office investment sales are expected to slow, but overseas investors will continue to put money to work in Greater Boston, said Jessica Hughes, a managing director for JLL.”

You can read the B&T report, here, or check out our analysis of Boston Spec Suites.

0 What will it cost me to move into my new office space?

Posted on November 6, 2014 by Wil Catlin

Humboldt moving, logo What would it cost to move your company from Downtown Crossing in the Financial District to the Seaport? Let’s assume you are in 3,600 rentable square feet and moving into something similar.

According to Humboldt Moving and Storage, you can use the following as a guide:

• The cost per square foot would be $3.00 + for an average, and it is usually + on a commercial office move.
• This does not include packing, crating, panel systems, or any special services.
• Tenants will usually perform their own packing. Rental crates will average around $5.00 each. Figure 3-6 crates per person. Legal and accounting firms will require more due to paper record keeping.
• Workstations will usually run $200 plus each to disassemble and reassemble.
• Based on a 25 person office with 20 workstations your move would cost $15,300.00 or $4.25 per square foot.

0 Faneuil Hall and Quincy Market: Marked for an Overhaul

Posted on November 6, 2014 by Wil Catlin

Faneuil hall and quicy market in downtown boston

Credit: ABCNews

Faneuil Hall is set for change. Ashkenazy Acquisition Corp will be looking to convert some of the office space to a boutique hotel in the South Market Building.

From ABCNews:

“Quincy Market, the granite-columned marketplace just behind red-brick Faneuil Hall, is part of one of the world’s top tourist destinations, attracting visitors seeking a taste of revolutionary history and a cup of New England clam chowder…after four decades, the market’s operator says Quincy Market — along with the two brick buildings along either side that house office space and retail chains — is past due for an overhaul.”

“Among its early plans are transforming existing office space in the South Market building into a new, 180-room boutique hotel; installing the Japanese clothing retailer Uniqlo on the top floor of Quincy Market; and redesigning the building’s crowded food court with more open space, sit-down restaurants and, possibly, moveable bars. Along the marketplace’s familiar cobblestone paths, the company wants to possibly introduce ping pong tables, shuffleboard and performance spaces for live music and poetry and book readings.“

0 Christian Science Parcel Bought for $22M and Heavy Restrictions

Posted on November 6, 2014 by Wil Catlin

Credit: ChristianScience.com

Development opportunities continue in Back Bay with some interesting restrictions from sellers.

According to a report on the BBJ, “the Church Realty Trust, which administers property for the First Church of Christ Scientist, dictated in a deed conveying a parcel at 30 Dalton St. to developers that the land was subject to long-term use restrictions that reflect Christian Science teaching around alcohol sales, pornography and, to a limited extent, medical practices.”

Additional details are available on the Boston Business Journal, here.

0 Is Speculative Development Fit to Take Off in Boston?

Posted on November 6, 2014 by Wil Catlin

Office building at 111 Huntington Avenue in Boston

The office market has clearly shifted from years past. We are seeing continued rent growth in all Boston office markets from Back Bay to the Seaport and Financial District. The time has arrived for speculative new office construction. Tenants are willing to pay for brand new construction that accommodates their culture and growth.

From Banker and Tradesman:

“’You’re hearing rumblings in the market about people starting to think about spec office development,’ said Carlos Febres-Mazzei, a senior vice president at CBRE/New England. Typically, speculative development takes off when vacancy rates fall to around 8 percent. With current construction costs, rents need to approach $70 a square foot to support ground-up development, said Febres-Mazzei said.”

0 Office Trends Among Boston Law Firms

Posted on October 26, 2014 by Wil Catlin

Credit: Cannon Design

Boston, compared to our peers, has some of the most efficient lawyers. Boston law firms only occupy about 10 percent of the high end, Class A, real estate in the city. Other cities those numbers range from 25 percent to 42 percent.

The BBJ has strewn together a ‘snapshot of office space trends’ among Boston law firms. The article remarks of the office environment in Boston, noting “legal employment is still down about 2,600 jobs from pre-recession numbers.”

The full article, containing a list of law firm office trends in Boston, is available on the Boston Business Journal’s website.

0 Boston is one of Uber Health’s Test Markets

Posted on October 26, 2014 by Wil Catlin

From car service, to ice cream, to Flu Shots; click on your Uber App for all? Boston is one of the test markets for Uber Health, along with New York and Washington D.C.

Now your Flu shot will come to you, based on where you are, and provide up to 10 shots for your coworkers.

From the Boston Business Journal:

“Uber is testing its UberHealth service…in partnership with Vaccine Finder, a free vaccine search tool developed in part by Boston Children’s Hospital. For every shot given, the company said it would donate $5 to the Red Cross to support vaccination efforts for children including its Measles & Rubella Initiati.”

0 Office Market ‘As Good as it Gets’

Posted on October 26, 2014 by Wil Catlin

Credit: CoStar

If you need office space or are looking to expand or renew at your existing location, consider now. The market is clearly in favor of the landlord and is expected to continue in that direction. Investors are reaping the benefits, while tenants are looking for options with competitive rents.

Hans Nordby, managing director of CoStar Portfolio Strategy, described the commercial real estate environment as “the prettiest picture you’re likely to see in this economic cycle. If you’re waiting for ‘as good as it gets,’ it’s probably today in terms of year-over-year office employment growth being so pervasive.”

Boston office tenants absorbed over 350,000 sf of space in the 3rd quarter, lowering vacancy to just over 10 percent. Class A rents rose to $51.80 per SF.

Additional information on the national market are available on CoStar.com.

0 Greenway Condos to Fill Existing Parking Lot

Posted on October 23, 2014 by Wil Catlin

Credit: Banker & Tradesman

Your favorite parking lot is going the way of residential condo’s on the Greenway. Parking in the city continues to cost more and there are fewer available options. Back Bay’s monthly rate can range from $350 to $500, while the Financial District can be from $400 to $525.

From Banker & Tradesman:

“City officials have approved a $45 million condo project that will be built on a parking lot overlooking the Rose Kennedy Greenway…The 67,000-square-foot, 12-story building at 55 India St. will contain 44 one- to three-bedroom condos and 4,000 square feet of commercial space. The site consists of three parcels, two of which are privately owned and one acquired from the Massachusetts Department of Transportation.”