0 Downtown Crossing Poised for Another Triumph

Posted on July 9, 2014 by Wil Catlin

Credit: Bisnow

This is not the first period of growth or transformation for DTX, also known as Downtown Crossing. In 1979, Washington Street was made into a pedestrian-only roadway following the success of Faneuil Hall Marketplace. This resulted in a modest decline following the popularity of the vending cart program.

The fate of the neighborhood, now, seems set for a steep incline:

Bisnow states, “$210M Millennium Place mixed-use residential project that opened Q2 last year tested how housing would fare in the heart of this commercial neighborhood. All of its 256 condos sold by year-end priced from $550k to $3.5M. As one of the first Boston condo developments to be completed since the recession, it showed that buyers would put down stakes in the CBD, permanently changing the character of the historic neighborhood.”

A more detailed history on Downtown Crossing is available in the Bisnow article.

0 Boston Roadways Lag Behind the Real Estate

Posted on June 27, 2014 by Wil Catlin

Credit: MassDOT

This major intersection was last updated 49 years ago on February 18, 1965. The requirements of our roadways are vastly different now and we need to take a proactive look toward the next 50 years as Boston and Cambridge continue to grow in both workforce and population.

Banker & Tradesman reports that “recently, the Massachusetts Department of Transportation convened a task force of about 50 members to advise the state on the redesign for the “Allston Interchange,” the spaghetti bowl of ramps and tollbooths in the middle of the rail yard adjacent to the Charles River and a neighborhood of houses and businesses.”

Additional information on the Allston Interchange is provided in the B&T article, here.

0 A Universal Trend in Workplace Design

Posted on June 23, 2014 by Wil Catlin

Credit: hok.com

A recent hok.com article on workplace design informs a trend all real estate professionals are seeing. The question is no longer just “how many SF and how long of a term do you need?” It is now, “what do your employees want, what type of environment helps you as the CEO of your company recruit, retain and maximize your talent and production within the space?”

From hok’s Top Trends Influencing Workplace Design:

“People Matter! If there is one macro-trend that encompasses all of the trends listed here, it would be the growing emphasis on people. Workplace design and strategy can play a huge role in helping to maximize the comfort and performance of occupants. Engaging with employees on how the workplace can best support them is a great way to start.”

0 Downtown Crossing Transformation Nears Completion

Posted on June 23, 2014 by Wil Catlin

construction in Boston's downtown crossing

Credit: NY Times

Live, work & play. Downtown crossing is in the final phase of its transformation. 23 years ago I moved back to Boston from California and took the T to Park Street and walked to Milk Street daily. At that time you could still buy a suit at Filene’s Basement. Over those years we have seen retailers come and go and some shuttered buildings evolve to residential buildings. Now, we are seeing the area become a destination location for office workers priced out of E. Cambridge, but wish to maintain Red Line access. 1,000 new housing units are coming online and the repurposing of the Daniel H. Burnham building into offices for Arnold Communications.

A national voice on Downtown Crossing, the NY Times, describes “some $4 billion in private investment over the last decade is finally stoking the long-neglected district with both a new attitude and fresh appeal. Developers are rapidly reinventing Downtown Crossing as an upscale residential neighborhood filled with stores, restaurants and cafes catering to students and young professionals.”

The NYT article is available online: New Energy Rouses Boston’s Downtown Crossing

0 Marine Park’s Bronstein Center Targeted for Commercial Use

Posted on June 17, 2014 by Wil Catlin

Credit: Boston Business Journal

What does it take to convert a former munitions building to full commercial use?

Well, some history of the site according to Wikipedia. The Department of Defense purchases the site in 1920 and split it up between the Navy Annex and the South Boston Army Base. During World War II the site was used as a machine shop, power plant, barracks, dry dock warehouse.

Post World War II the annex was used to store ships and in 1074 the City purchased the site and it became the Boston Marine Industrial Park. As our city expand we need to accommodate more commercial use and less industrial use and Jamestown is looking for approvals to do so.

The Boston Business Journal reports, “last year, Jamestown Properties bought the Boston Design Center from Millennium Partners for $72.7 million and the adjacent Bronstein Center for $48 million. The 1.4-million-square-foot complex is located at 21, 23, and 25 Drydock Ave. at the far end of the Seaport District.”

Details on Marine Park and the potential commercial conversion, head over to the BBJ’s website.

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 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 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 Boston Office Space 2013: Year End Review

Posted on March 4, 2014 by Wil Catlin

Boston’s Financial District attracted positive demand in 2013 as Class B properties and Class A commodity space continue to benefit from the lack of prime availability. Tenants flocked to the Financial District from supply constrained markets like East Cambridge, the Back Bay and Seaport. This demand saw year over year rents increase in excess of 20% in the Class B market. Many Landlords are capturing this demand by proactively renovating and upgrading suites to open concept, spec suites that offer today’s tenants ready-to-go spaces with more flexible lease commitments. The red line continues to be the main driver and 2014 is poised to see a true renaissance of Boston Downtown Crossing neighborhood. Boston’s transportation hub is spurred by the new Millennium Tower redevelopment of the Filene’s Basement site. This area will continue its transformation as a hub for new and emerging companies. Expect rising rental rates and continued demand to drive some Class B building owners to complete capital improvement projects and upgrade second generation spaces to compete for tenants.

Boston office space price over past 5 years

Credit: CoStar

Vacancy & Rental Rates: Overall 2013 saw tenants absorb over 1,000,000 SF square feet of commercial office real estate in Boston’s Central Business District. The Class B office market in particular saw 322,258 SF of absorption in 2013 bringing the vacancy rate to 8.0 percent. This trend of positive absorption has continued over the last 8 quarters resulting in the increase of asking lease rates for class B product to an average asking rate of $31.08 per rentable square foot. Supply constrained markets like the Back Bay and Seaport continue to impact market fundamentals by increasing demand in other areas of the city like the Financial District resulting in further recovery in rental rates reviling pre-recession pricing of early 2008.

Demand Driver: Class B real estate activity provided a look into the dynamics of the Boston economy and leasing activity suggests that Boston is not slowing down and expected to continue with compound annual rent increases excess of 10 percent through 2015. As the value play alternative, the Class B Financial District market continued capitalizing on rising Class A rents combined with limited supply in the Seaport, Back Bay and East Cambridge. This is most evident within the Financial District where tenants seeking value have poured into buildings with great T access like Downtown Crossing.

Outlook: Healthy fundamentals persist in submarkets like the Back Bay, Cambridge and the Seaport District and demand appears to be spilling into neighboring submarkets. Continued growth and positive indicators seen regionally mixed with the most optimistic confirmation of stock market and national employment data seen since 2007 suggests further gains in employment and real estate occupancy in coming quarters. With some of the regions most desired locations becoming market wide choice-constricted and no speculative construction underway market wide, many expanding tenants will increasingly consider peripheral locations and other creative solutions with rent levels adjusting to changing demand trends.

0 87 Summer Street office space: affordable Downtown Boston option?

Posted on January 17, 2014 by Wil Catlin

Office building on Summer Street in Boston

Credit: Loopnet

Boston Realty Advisors represent the 2,162 RSF on the Mezzanine level of 87 Summer Street that is priced in the mid to upper $20’s. This building is owned and managed by Synergy Investments that controls in excess of 3.5 M RSF of Class B product in Boston.

In the heart of Downtown Boston, 87 Summer Street offers cool collaborative space with full floor identities. This property offers Verizon & Comcast with high speed connectivity, and many other local amenities.

87 Summer Street is located within the Downtown Crossing Business Improvement District. Just a short walk to public transportation such as the Red, Orange & Green Line T stops, along with the commuter rail at South Station. There is also a wealth of parking within the area.