0 Why are they leaving Waltham for Boston and Cambridge?

Kendall Square commuters rely on the T to get to work in Cambridge, Ma

Credit: MIT

Why are the V.C. firms leaving Waltham for Boston?  Is it traffic and higher priced rents?  No, the customer is there.  Downtown Crossing (DTX) has evolved to being a hot bed of new technology companies that wanted a few simple items.  Rents; looking for an affordable option, DTX has Class B rents ranging from the mid to upper $20’s to the mid to upper $30’s PSF.  The swing in price is due the specific location, the build out of the space and the condition of the overall building.  In addition some buildings have a staffed lobby, while other operate on a key FOB system.

Location; emerging companies are competing for a hot commodity, talented staff.  Location becomes a huge factor what that young employee doesn’t own a car and relies on the T to get them around.  DTX is uniquely positioned at the Red, Green, Blue and Orange lines.

So, that is why the V.C. firms are moving back to the city to pay Class A rents that can start in the upper $40’s PSF and beyond?

The latest Venture firm to vacate Waltham for Boston or Cambridge? North Bridge Venture Partners.

From betaboston.com:

North Bridge Venture Partners, based in Waltham, is planning to move to Boston or Cambridge some time later this year, said general partner Michael Skok. “Our leanings are toward the Innovation District or Downtown, mostly based on entrepreneurs saying it,” Skok said.

The Betaboston.com article on North Bridge Venture Partners is available in full, here.


0 How Startups Pick their Hometowns

View of skyline

Credit: BBJ

Frequently when I meet with young companies their initial request is, what will it cost?  My reply is usually is, “ If it was free and the perfect configuration, but in Western Massachusetts, would you take it?”  The reply, “No.”

Companies that are in growth mode care about access to qualified potential employees. In the Boston market we see many companies prefer to be within the city core as opposed to be outside the city for that simple reason. The younger workforce doesn’t own or doesn’t want their commute to involve an automobile.

According to a research report on the Boston Business Journal, here’s are the three aspects that entrepreneurs say actually did sell them on their hometowns:

1. Population & talent

2. Livability

3. Strong area supply chains

The full BBJ article is available, here.

0 Is Boston the New Innovation Hub?

Downtown Boston in color

Credit: Bostinno.Streetwise.co

Is downtown Boston the new innovation district? Well, yes it is. Downtown Boston holds some of the components critical to an emerging companies success. First is access; the famed Red Line is what is most widely discussed.  It provides that vital link from Harvard and MIT to the North while offering a stop at South Station, which is the largest commuter hub.

From our internal data, the Downtown Crossing Market offers the last great value option for tenants. This is being driven up by the lack of opportunities in the Seaport, Kendall and Back Bay.

According to bostinno.streetwise.co, “now that the rents are creeping upwards both around Kendall and Harvard Square and the Innovation District, entrepreneurs – and a few of the organizations that cater to them – seem to be settling in Downtown Boston.”

To read more about this trend, follow the link to Bostinno.

0 Cambridge Office Rents Push Out Small Businesses

Cambridge Center office space in Cambridge Mass

4 Cambridge Center, Cambridge, MA

If you’re a CEO of o a small software company that has recently been funded where do you go?  Well the next question is what can you prudently afford. Gone are the days of leasing as much space as you can and hoping for revenue. Today’s decision makers would love to continue to grow their business within close proximity of the think tanks at Harvard and MIT; the reality, however, is that those locations are being gobbled up by the large publicly-traded tech companies with a worldwide presence. The notion of paying $60 PSF doesn’t affect them as much when you compare it to pricing in London or Singapore.

The Boston Business Journal describes the surge in Class A office space in Cambridge, identifying the “one-year increase roughly equates to a 25-to-30 percent price hike for tenants seeking a new or expanded beachhead in the Bay State’s innovation hub.”

You can check out office space available in Cambridge or read the BBJ’s article.

0 39 JFK St. in Harvard Sq. Sold for $33.1M; Price Exceeds $1,600 per SF

Logo for Boston Realty AdvisorsThe Real Reporter covered the sale of 39 JFK St., noting, “one of Harvard Square’s most prominent buildings has changed hands at a mind-boggling price cresting $1,600 per sf, scooped up by a foreign investor in an off-market transaction orchestrated by Boston Realty Advisors. The $33.1 million exchange of 39 JFK St. offers a double dose of déjà vu, with the same buyer in 2012 acquiring three Harvard Square assets in two separate trades also negotiated by BRA’s team of Michael d’Hemecourt, Christopher D. Sower and Jason S. Weissman.”

To view other properties from BRA, jump over to BostonOfficeSpaces.com’s commercial listings.