Category Archives: Office Space Boston

0 Sublease-market Risks Brought to Light with First Marblehead Corp’s IRS Problems

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First Marblehead Corp logoShould I sublease space or go direct to the landlord? That is a common question in the industry and the answer truly depends. If you are considering a sublease you need to consider the financial capacity of the sub lessor. After all, you could be paying your obligation, but if they aren’t covering the shortfall then you could find yourself looking for new space.

The Boston Business Journal wryly reports, “First Marblehead Corp.’s blasé mention this week that it might, possibly, probably owe the IRS some $300 million would be bad enough if the potential fallout was confined to its own operations. So listen up, all of you subtenants over at 31 St. James Avenue and 800 Boylston St.”

The BBJ’s extensive look at First Marblehead Corp’s IRS issues is available on its website: First Marblehead’s IRS headache

0 East Berkeley Street to House New 11-Story Office Building

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80 E. Berkeley St in Boston

Credit: Patch

Our city continues to grow, expand and evolve. The Druker Company is proposing a 290,000 RSF building on East Berkeley Street to replace a surface lot and auto repair facility. With rents continuing to push north and available options dwindling, the market is ready for new inventory.

Patch is reporting that “the Boston Redevelopment Authority will host a public meeting on Wednesday night to go over the details of the project…The proposal from developers The Druker Company, Ltd., calls for 290,000 square feet of office space on ten floors, 18,000 square feet of retail or restaurant space on the ground level, and a parking garage with 200 spaces.”

Southend Patch has the full article available on its website.

0 Seaport Office Tower Construction Planned around PwC

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Graphic of Seaport Square office tower in Boston

Image Credit: Banker & Tradesman

If you come we will build it for you! That is what Skanska USA Commercial Development agreed to do for PwC. This is usually how new projects get in the ground, most developers and landlords would prefer not to build on spec, but that model has shifted in the very recent past due to the lack of inventory and increased rents most notably in the Seaport District.

According to Banker & Tradesman, “PricewaterhouseCoopers has signed a 15-year lease to occupy the majority of a planned office tower in Boston’s Seaport District. Inking a deal with the accounting firm gave Skanska USA Commercial Development the anchor tenant it needed to begin construction on the 440,000-square-foot tower at the southeast corner of Seaport Boulevard and Boston Wharf Road.”

The complete article is available on Banker & Trademan’s website.

0 Short-Term Retail Leases: The New Commercial Real Estate Trend?

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short term office space leasing concept

Credit: Boston Business Journal

This is a creative way on thinking of trying to full some of our retail vacancy’s around the city. Perhaps this would be better to put into context, like a retailer that focus on a holiday event like Halloween. It would be tough to support that annually, but for the 90 days prior to the holiday, it might be a great solution. This would also allow the Landlord to continue to market the space to a more permanent retailer. Some of the concerns might be the transactions costs of producing a lease agreement along with the lender’s concern about being a transient building.

Banker & Tradesman spoke with Storefront co-founder Tristan Pollock, noting “the concept is the commercial real estate equivalent of AirBNB, the popular website that allows consumers to find vacation rentals or apartments for the short term…Pollock said that the service would tackle a problem that plagues the commercial real estate industry across the country: the retail space vacancy rate is higher than it’s ever been (10 percent on average). It would also make it easier for potential tenants to connect with property owners.”

The complete article, and additional commentary from Storefront co-founder Tristan Pollock, are available on B&T: short-term leases for retail outlets

0 45 Milk Street Goes Under Agreement

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Office Building at 45 Milk st. in Boston financial district

Photo Credit: Banker & Tradesman

The Class B Office market continues to see trades within the Financial District.  At $302 per square foot this continue to push the market values up.

“Deutsche Asset & Wealth Management, formerly RREEF Real Estate, has agreed to buy the nine-story, 70,000-square-foot office building at 45 Milk St. for about $21.2 million, or more than $300 per square-foot, industry executives told Banker & Tradesman. Anglo Irish paid nearly $34 million for the asset in 2007, just before the financial markets came crashing down,” stated a report on Banker & Tradesman’s website.

The full article is available at B&T online

 

0 DNA Testing Truck Roves Boston

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Boston vending truck, DNA testing vehicle roaming the city

Photo Credit: Brian Jipson via Boston Magazine

So, if you were touring office space would you worry about what vending trucks were selling on your block?  Me, no, after all that’s what makes our country great!

Boston Magazine reported on an unusual truck roaming the streets of downtown Boston:

“Parked along the corner of Summer and Otis Streets, the “Who’s Your Daddy” paternity testing truck, which takes swabs and samples on the spot, caused quite the stir. ‘Today was insane, there must’ve been a thousand pictures people were taking,’ says Jared Rosenthal, owner and operator of the truck, and employee of the company that runs it, Health Street. ‘We are looking to expand services here. We have clinics in the area, but this is the first time we have really had the truck [in the city].’”

Follow the link to read the full article on BostonMagazine.com

Related Office Listings
Commercial Real Estate for Lease in Downtown Boston

0 Boston Office Market ‘Booming’

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Boston office spaceWill landlords in the city of Boston start construction projects without a tenant in hand? The market is significantly different than it was a few short years ago and the Seaport has evolved into a destination location.

A Bloomberg editorial paints a glowing portrait of the flourishing Boston office market: “Boston’s real estate market, often overshadowed by the skyscrapers of New York and government-fueled growth in Washington, is seeing a boom in construction as developers financed with cheap debt seek to profit from a growing workforce of educated young adults and strength in the technology and life-sciences industries. The office-vacancy rate is among the lowest of major U.S. markets and tenants are occupying new space at almost triple the national average.”

Follow the link to read the full Bloomberg report, or continue on to view available office space listings in Boston and Cambridge.

0 Two Liberty Square in Boston’s Financial District Sold for $18M

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Two liberty square office building in boston's financial district

Photo: courtesy of Jones Lang LaSalle via Boston Business Journal

Another Class B Financial District office building is said to have traded hands; 2 Liberty has reportedly been acquired by Urdang.

Coverage on the Boston Business Journal offers the following background on the building:

“Built in 1913, the 64,357-square-foot boutique office building was designed in the Beaux Arts style by Peabody & Stearns. It was renovated in the 1990s and combines historical architecture with modern infrastructure. It is located near Post Office Square, Faneuil Hall Marketplace and the Rose Fitzgerald Kennedy Greenway. The property is 81 percent occupied with nine tenants, according to brokers.”

0 Melcher Street Grows into Hub

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Offices on Melcher Street in Boston named 'M Block'

Photo Credit: Stuart Cahill for the Boston Herald

The Seaport District continues to evolve with a new micro market on Melcher Street, designated as “M Block.”  This is a combination of residential, office and retail on what was once a cut through.  Now it will be a destination location accommodating todays changing lifestyle that is mirrored Meatpacking District in New York.

Office rents for Class B space have jumped to the low $40’s PSF with very few available options.

According to a report by Donna Goodison of the Boston Herald, “a new campaign branding it as the “M Block” is designed to draw attention to the restaurant, office and residential projects bringing new life to the street of former warehouse buildings probably best known for the old elevated pedestrian bridge that stretches above it.”

Follow the link for more information on the development of Boston’s M Block.

0 Boston Building Growth Strong in 2012

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office building in downtown bostonYes, our city as we know it is changing and by that, I mean growing. With 22 developments starting in 2012 we can expect to see 2,500 construction workers taking to the streets to build new offices and homes. So, take time to let them in our out of traffic so our city can continue to grow and prosper.

A report in Banker and Tradesman notes that “in 2012, projects broke ground in Allston/Brighton, Charlestown, Chinatown, the Innovation District, Jamaica Plain, the Longwood Medical Area, Mattapan, Roxbury and South Boston. These projects have housing, hotel, athletic, municipal, office and retail uses.”

Related Office Space
Available Commercial Real Estate in Boston