Where is the best value for office space in Boston? The Financial District, rents are 20 percent below Back Bay with vacancy rates at 14.9 percent.
Banker & Tradesman reports that a “six-quarter streak of positive absorption in Boston’s Financial District has increased occupancy there by 848,000 square feet…Back Bay rental rates are now at a record 20 percent premium over asking rates in the Financial District.”
Further analysis is available at Banker & Tradesman.
The Office Market recovery in Boston and Cambridge is here. The real question is for how much longer will favorable opportunities exist for tenants.
The Boston Business Journal reports that “a survey of 44 office buildings by Boston brokerage McCall & Almy found that of the 26.5 million square feet of space studied in the Financial District, 16.6 percent was available in September, down from 20.3 percent at the close of last year.”
More information on the Financial District occupancy rates is available on the BBJ’s web site.
Related Commercial Real Estate
Financial District Office Space Listings
Tenants continue their migration from Class B buildings to Class A within the Financial District. With vacancy rates just below 15 percent opportunities for tenants to trade up still exist. Rents within the low rise Class A space will fall in the upper $30’s to low $40’s depending on the building.
Banker and Tradesman reports, “the move is the result of an expansion push by Managing Director Robert Brown, who came to the firm last year.”
Related Resources
What to know about finding office space in the Financial District, Boston
Photo Credit: Neborestaurant.com
The famed local eatery, Nebo, is expanding to the Financial District/Seaport area with the addition of its second location at Boston Properties Atlantic Wharf location on Congress Street.
The BBJ reports that “the Italian sisters who launched nebo — North End Boston — on North Washington Street in Boston are opening a second location at Atlantic Wharf.”
Click through to read the full article on Nebo.
Related Commercial Real Estate Listings
Office Space for Lease in Boston Seaport District
Office Space in the Financial District, Boston
What’s changing in Post Office Square? The $40 million renovation of the former Verizon building at 185 Franklin Street which is a joint venture between Commonwealth Ventures and Kennedy associates.
A report in the Boston Business Journal confirmed the news, stating that “a$40 million renovation is set to begin on the former Verizon building at 185 Franklin St. in Boston’s Financial District.”
More information is available at the BBJ website.
Related Office Space Availability
Commercial Real Estate Boston
Commercial Real Estate in Cambridge
Since Commonwealth Ventures has secured State Street for Channel Center their next focus will retail and rental apartments to cap off their 13 year project.
A report in The Boston Herald notes that “the State Street office project may effectively cap off Channel Center, but the developer still has work to do to bring more residents and retailers into the Fort Point Channel complex…renovations will begin soon in two buildings to create 39 apartments, 33,000 square feet of office space and additional storefronts.”
More information is available in the Boston Herald’s coverage of the Channel Center.
Available Office Space Listings
Boston Commercial Real Estate
Photo Credit: NAI Hunneman via Boston Business Journal
Tenants continue to gravitate to the opportunities in the Financial District with vacancies just above 14 percent within the Class A market. Value opportunities still exist unlike Back Bay and the Seaport where vacancy rates are below 5 percent.
Thomas Grillo, Real Estate Editor at the Boston Business Journal is reporting that “Prudential Insurance Co. of America has leased 3,200 square feet of space at One International Place, the 46-story tower on the Rose Fitzgerald Kennedy Greenway in Boston.”
The full BBJ article is available on their website, here.
Related Property Listings
Commercial Real Estate in Boston’s Financial District
Photo Credit: Thomas Grillo, Real Estate Editor, Boston Business Journal
Another building in Boston achieves 100 percent occupancy in Boston’s Financial District.
According to the Boston Business Journal, “McKinsey & Co, a global consulting firm, is taking 35,000 square feet on 1 1/2 floors in Boston Properties’ 31-story glass tower..[while] Altisource, a mortgage services company, has also negotiated a deal to take nearly 12,000 square feet in the building.”
The two leases combine to bring occupancy of the Financial District building up to 100 percent.
Read the complete article on the Boston Business Journal’s web site.
Related Office Space Listings:
Boston Commercial Real Estate
The market has over $1.2 billion dollars in commercial real estate sales activity that is expected to change hands by the end of the year. The opportunities include; Financial District Class A office tower, Seaport Class B office portfolio, Lab Space in East Cambridge and many more.
A report in Banker and Tradesmen notes that “several properties around Boston and Cambridge are expected to potentially change hands before the end of the year as brokers and buyers get back to work.”
Click here for the full article.
Related Property Listings:
Commercial Real Estate in Boston
Office Space in Cambridge
The migration away from private offices to open plan layouts is in full swing from tech startups to mutual fund companies. Pioneer Investments at 60 State Street has captured this in their recent renovation of 100,000 square foot renewal.
According to a report from the Boston division of CityBizList.com, “MPA [Margulies Perruzzi Architects] substantially updated the office design and additional support space consisting of five floors at Pioneer’s Boston office located at 60 State Street.”
For more information on the development, read the complete report detailing MPA’s update on the office space at 60 State Street.