The largest concentration of office space North of NYC is making some changes: Boston’s Financial District is adding new construction with automated parking facilities, starting with One Post Office Square.
According to Banker and Tradesman, “the 41-story One Post Office Square tower..owner Morgan Stanley seeks to demolish the existing 6-story parking garage and build an 18-story addition including 265,000 square feet of office space atop a new automated parking system…Part of a comprehensive repositioning of the 832,000-square-foot tower built in 1980…would include a new glass curtain wall to replace the concrete facade, floor-to-ceiling windows and a 2-story rooftop lighting element dubbed “The Lantern” that would become a new skyline beacon.
Additional details on the tower and the Financial District’s planned modifications are available on B&T’s website.
Class A landlords are continuing to update and upgrade their assets to address the evolving needs of today’s tenant. The 402-foot, 41-story Class A tower at One Post Office Square was built in 1981 and is 832,000 rentable square feet with a typical floor plate of 18,221 square feet.
Credit: Banker and Tradesman
A recent Banker and Tradesman article speaks to the proposed transformation, noting the office “tower in Boston’s Financial District will get a new glass facade, a roof deck and terraces and an illuminated rooftop glass “lantern”…On the lower levels, a three-story glass pavilion will add 52,100 square feet of retail space and an 8,800-square-foot restaurant…An 18-story addition replacing the existing garage on Oliver Street would [also] contain automated parking and additional office space.”
Click on the link for additional information on the One Post Office Square renovation on B&T’s website.
Where do venture-backed companies focus when coming to the 617 area code? Unsurprisingly, the list focuses on the city core with areas like the Seaport, Financial District, Back Bay, Kendall Square and some clustered at the 90/95 interchange.
Credit: City Lab
Here’s a national perspective from City Lab:
While many large, high-tech companies like Facebook, Google, Apple, and Microsoft have their main campuses in suburban areas, cities and urban areas house the majority of venture capital–backed startups. My own research estimates that 55 percent of all venture capital investment now flows to urban neighborhoods. In the Bay Area and Boston–Cambridge, more than 60 percent of venture capital investment gravitates to these neighborhoods.
Additional information is available on CityLab’s website.
From flight paths to shadows, Winthrop Square continues to make headlines as the newest proposed tower in the Boston Financial District. Some speculate that the tower height will be reduced by 4 – 6 stories to lessen the impact.
Credit: Boston Globe
According to the Boston Globe, “A tower that tall, a Massport official wrote, would interfere with operations at Logan, blocking a popular takeoff corridor and probably leading to more noisy air traffic over Boston’s northern and western suburbs. Massport would object to anything taller than 710 feet on the site, which sits about two miles west of the airport.” The globe article continued, noting “cutting the tower by 65 feet would lop four or five stories off the 60-story tower, probably not a deal-killer for a project estimated to cost $1 billion. But that could reduce the city’s payday. Under Millennium’s deal with the BPDA, $50.8 million of the $152.8 million purchase price is tied to the sale of condos in the tower.”
For more information, jump over to read the full Globe article.
Boston Realty Advisors represented Christopher Kimball’s Milk Street search for a new location in the Financial District. According to Wil Catlin, Managing Principal at Boston Realty Advisors, 177 Milk Street was the perfect fit for Chris’s new venture. The building known as the Grain Exchange was completed in 1892 and sits one South from the Custom House on the Greenway. The space occupied by Milk Street is on the retail level with direct access from India Street with expansive ceilings and windows.
Client Testimonial Tenant Representation from Boston Realty Advisors on Vimeo.
Credit: Boston Magazine
Roof decks are on office tenants’ list of top 10 of amenities. When thinking about your next office space, consider these 5 roof decks with amazing views, courtesy of Boston Magazine.
1 Federal Street in Boston’s Financial District
1 Federal Street is headed for the sales block by Eastdil Secured. The building is expected to trade in excess of $682 per square foot.
According to Realert, “the 38-story tower is 98% occupied, with a weighted average remaining lease term of almost seven years. The largest tenant, law firm Morgan Lewis, occupies 301,000 sf on a lease that runs until 2023. Records-management company Iron Mountain is leasing 133,000 sf until 2024. Others tenants include Credit Suisse, J.P. Morgan, Oppenheimer & Co. and U.S. Bank.”
Additional information is available on realert.
Class B office space at 258-262 Washington St. and 85 Devonshire St. in Downtown Crossing could fetch in excess of $525 PSF. The Class B office market in the Financial District has seen strong rent growth over the last 36 months with prices ranging from the upper $30’s to the upper $40’s PSF.
From the Boston Business Journal:
The buildings together encompass about 92,000 square feet and span the stretch of Water Street between Washington and Devonshire streets near the State Street MBTA stop…Boston-based real estate investment and development firm KS Partners owns the property and has invested more than $5 million in the past three years to help rejuvenate it.
Marketing materials obtained by the Business Journal indicate that the the Washington and Devonshire property is “one of the last Downtown Class B repositioning opportunities” that is “an opportunity to capture momentum” for retail repositioning along Washington Street. The stretch of Washington Street fronts the Freedom Trail and is currently leased by a Subway and a Vitamin Shoppe.
The Boston office market is seeing strong rent growth in all classes and in all CBD submarkets. Landlords continue to try to differentiate their buildings by offering amenities and upgrades. Oxford is making a big splash in this space with lobby upgrade at 125 Summer Street in the Financial District.
According to the BBJ, Oxford is planning “a $10 million project to upgrade the building’s ground floor and lobby and reposition the entrance of the building to the confluence of Summer and High streets. The renovation was designed by ADD Inc., now with Stantec, while Turner Construction Co. is the general contractor…Oxford [recently] teased the renovation by erecting a two-story kelly green and navy blue banner at the site of what will become the entrance to 125 Summer St. with an all-caps proclamation: “Something big is coming.”
You can read the full article on the Boston Business Journal’s website.
Property Detail Page
125 Summer Street
Credit: Banker and Tradesman
The Winthrop tower development site can take a couple of different paths, mixed use or all residential.
From Banker & Tradesman:
The two largest development proposals for Boston’s Winthrop Square have starkly different visions for an overlooked corner of the Financial District. Both developers Steve Belkin and Thomas O’Brien propose 725-foot-tall towers with a substantial allotment of luxury condominiums, reflecting the current market’s hottest category. But their approaches diverge in satisfying the Boston Redevelopment Authority’s requirements for an innovative economic development strategy and new downtown public spaces.
Six developers submitted mixed-use proposals for the 1-acre municipal garage site at 115 Federal St. The BRA will hear presentations from them in coming weeks with a goal of designating a developer by the end of June. That would set the stage for a review under the BRA’s Article 80 process for large developments later this year.
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Current Winthrop Square Office Space for Lease