The value option in Boston office leasing, the Financial District, holds the single largest concentration of office space and workers. Submarkets like the Seaport, Kendall Square, and Back Bay are pushing numbers in excess of the pre-2008 crash.
Data from the Boston office of Colliers International show that vacancy rates for the upper reaches of buildings in the Financial District — floors 20 and above — are at their highest in nearly a decade. And as a whole, the Financial District lost more tenants per square foot in 2016 than any other area in the city, ending up with nearly 850,000 more square feet of vacant space than in 2015…The Seaport District remains the new “it” address, with companies leasing an additional 400,000 feet of office space in 2016.
According to Curbed, plans to plunk one of Boston’s biggest real estate developments in living memory on the squat Winthrop Square Garage took a big step forward on Wednesday, with the city transferring garage ownership to the Boston Redevelopment Authority. The agency will now set about in earnest choosing a developer for the project” from the following eight proposals – click through to Curbed Boston to read more about each submission:
Have a peak at what groups are doing with their new office space.
The BBJ posted a photo gallery of InsightSquared’s new Boston HQ, and notes the following:
The new headquarters, which InsightSquared cemented with an office-warming party last week, is a far cry from where they started in 2010. Back then, they were working out of a tiny space at Bessemer Venture Partners.
“It feels great to be here,” said CEO Fred Shilmover at the company’s office-warming party last week. “It feels like our first grownup office.”
InsightSquared is backed by $27 million in venture funding and employs 170, up from less than half that amount in 2014.
The city of Boston wants to hear from you about your vision; the city has contracted with Textizen to enable the virtual suggestion box to get your input.
According to Banker&Tradesman, the initiative encourages “residents to respond to survey questions on improving quality of life and what issues they think the city should focus on in the new master plan.”
Having grown up West of Boston I had always felt that Fenway Park was the edge of the city. Today I still live West of the city and it is clear that our city boarders have not changed, but how we use the space within our borders has. Once active railyards have moved West along with companies like U.S. Steel. What was once rail lines for freight are now for passengers.
When the 15-acre Boston Landing development is fully built out, it will be referred to as its own district, much like the Seaport…”It’s really transformational,” Halliday said on a recent media tour of the New Balance Athletics headquarters, a key piece of the overall project. “We really are the western entrance to the city of Boston.”
The master plan for the 15-acre Boston Landing development spans almost 2 million square feet across a dozen buildings, including the recently completed 250,000-square-foot world headquarters for New Balance Athletics.
Do you pick you job based on where you live or do you pick where you live based on your job?
According to estimates from the Boston Globe, “Boston-area drivers spent an extra 64 hours in the car due to traffic in 2014, a new study found. During that time, they burned an extra 30 gallons of gas and also lost time they could have been productive. It added up to an estimated $1,388 lost per driver…Boston ranked as the sixth worst major metropolitan area for traffic congestion.”
One Broadway in Kendall Square (click for property details)
Fewer options exist on the Boston office market, and what is available is more expensive then previous quarters. Combined with fewer concessions offered by landlords, local tenants are feeling the pinch.
Boston’s office market is hopping, according to reports issued by real estate brokerages Transwestern and Jones Lang LaSalle. Driven by strong employment gains and growing companies in need of additional space, rents are rising all across Greater Boston, up 7.6 percent in the last 12 months. Throughout Cambridge, there are just three vacant office spaces of 20,000 square feet or more on the market, and rents in Kendall Square are averaging above $70 per square foot. Along Route 128, vacancy rates are at record lows, while office rents along Interstate 495 are at seven-year highs.
Gone are the tall private cubes, now, contemporary office space is much more open and collaborative with bright colors. Healthcare in particular has gone through a tremendous transformation over the year. One of the most visible changes is how they use their office space. BXBS is showing off their new headquarters at 101 Huntington Avenue owner by Boston Properties.
According to a post on the BBJ, accompanying a slideshow of the new Blue Cross Blue Shield of Massachusetts HQ, the new space “takes up the 11th through the 20th floors of the building, with the exception of the utility floor on the 14th floor. The new space is 60,000 square feet smaller than its previous space — clocking in at 308,000 square feet and will save the insurer $2 million annually…The space has also been renovated to have the signature white and blue color scheme throughout. The color scheme mixed with bright LED lights give the headquarters a futuristic feel.”
Boston office rents continue to rise, and are expected to climb through 2017. What can you do to hedge your risk against leasing in the top of the market? Understand what you need and engage an advisor.
The BBJ notes, “Boston can expect its asking rental rate increase to average 10.1 percent per year during that timeframe…The office market in Boston’s central business district averaged a $46.60 per-square-foot rental rate last year…[with estimates for] those rates to increase to $52.83 by 2015, $59.48 by 2016 and $62.09 by 2017.”
You can read the complete article on the Boston Business Journal, here.
City officials are reviewing designs for 50 Liberty Drive, a 14-story complex on the South Boston waterfront. The L-shaped condo tower would be built on parcel D, which sits directly east of the 109-unit Twenty Two Liberty condo tower now under construction.The new building would include 15,000 square feet of civic and retail space, including areas used by the New England Aquarium, Boston Children’s Museum and the Boston Harbor Island Alliance.
The 21-acre Fan Pier project will contain up to 3 million square feet of mixed-use development. The Boston Fan Pier development, a 252,000-square-foot condo tower, is expected to break ground in late summer.