The Financial District is not emptying out, but rather attracting tenants. The market is strong and with the lack of demand of available options in neighboring markets the Financial District is poised to see an influx of new companies.
Despite an article on the Boston Business Journal posing the question, “is Boston’s Financial District emptying out”, we continue to see evidence to the contrary.
Vacant Office Space Listings
Boston Financial District
185 Franklin Street
(Credit: Boston Business Journal)
99 High Street and 185 Franklin Street in Boston Financial District are among Boston’s newest interior renovations. Class A assets go through lobby upgrades about every 10 – 15 years to stay current and continue to attract and retain tenants. The Financial District has a current vacancy rate of about 14.7 percent and dropping due to strong demand and few options in surrounding markets.
Click through to view a list of available office space in the Boston Financial District
Photo Credit: Mark Garfinkel, Boston Herald
Some developers of new mixed-use projects are cautious when it comes to the Boston office market market.
A Boston Herald report notes:
A New York developer who filed plans for a 28-story apartment and retail tower on Washington Street four years ago — in the teeth of the Great Recession — is not yet sold on the shopping district’s recovery.
“We wouldn’t consider doing anything until that hole across the street is filled,” said John Usdan, president of Midwood Management, referring to the partially demolished Filene’s block.
To read the Herald’s full coverage, click through to their piece, Developer not sold on downtown
Iron Mountain, an information and data storage company, recently signed an 11-year lease to situate its headquarters at One Federal Street. This is another indication that the Financial District remains a strong value play among neighboring submarkets — like the Seaport and Back Bay — with vacancy rates just below 14.9 percent.
Click through to view available office space in the Financial District
Photo Credit: Wikipedia
Good news for local startups: for a small allotment — space and resources — PayPal is assisting fledgling companies to help grow the community.
According to a report in the Boston Business Journal, “the new Boston office for eBay’s PayPal business will be home to more than just its staff, with plans to provide space for at least five local startups and potentially house a separate business unit for eBay.”
For more on PayPal’s new office space and the startup incubator, jump through to the BBJ’s article, here.
Related Commercial Real Estate
Financial District Office Space for Lease
The Financial District continues to attract large tenants due to its value pricing compared to neighboring submarkets. As of November 8th, 2012, only 21 buildings in the Financial District have 50,000 square feet or more of contiguous space available.
Apparel company, Puma, Inc., recently signed a 60,000-square-foot lease at One Congress Street, adding another established brand to Boston’s Financial District.
The migration of tenants into the city continues with Communispace moving from Allston to the waterfront area of the Financial District.
According to the Boston Business Journal, “the new location for the Startup School, at 290 Congress St., is ideally situated near a large number of fast-growing tech firms.”
More information on the Boston Startup School, including its mission, programs, and new address, is available at the Boston Business Journal.
Related Commercial Real Estate for Lease
Boston Waterfront and Financial District Office Space
Question, where do you put your office for your newly venture backed technology company? Well, it might not be Kendall Square. The Financial District of Boston has vacancy rates below 15 percent with prices in the Class B buildings around $30 per square foot.
The Boston Globe offers some perspective on this transformation, noting that “gentrification has made Kendall too expensive or too popular for the many, smaller, younger tech businesses that gave the area such cachet.”
Related Commercial Real Estate Availability
Kendall Square Office Space
Office Space for lease in Boston’s Financial District
The Class B market in the Financial District continues to see trades. 11 Beacon Street is the next one to hit the market after being acquired in 2010.
According to the Boston Business Journal, “the 92-year-old building was purchased by Divco in 2010 for $16 million and the firms said it has spent $4.9 million in capital improvements. The city has assessed the 12-story building at $20 million.”
For more information on the sale of 11 Beacon Street, jump over to the Boston Business Journal’s website.
(Photo Credit: Boston Herald)
The Class B market in Financial District has another asset trading hands.
According to the Boston Herald, “the bank [Brookline Bancorp] said yesterday that 31-33 State St., a slender structure built in the late 1800s, is under agreement to be sold to an unidentified buyer by the end of the year.”
This is another indication that Boston’s Financial District remains an active market for downtown office space heading into Q4.
For more information on the sale of Brookline Bank’s financial district office building, read the Boston Herald’s full report on the sale of 31-33 State Street.
Related Commercial Real Estate Listings
Financial District Office Space for Lease