Putnam appears to be in the final throws of swapping one side of Post Office Square for another and leaving their address of 1 P.O. Square that they have had since 1981. Why move and why move now?
A number of reason play into this from how office space is used to overall economics.
According to the BBJ, “Putnam is close to signing a lease for 275,000 square feet of space at 100 Federal St. and vacating its offices a short walk away in PO Square…at One PO Square, Putnam occupies multiple floors and has lobby-level signage…The fund manager has more than 800 employees at the location, a workforce that includes its primary investment and trading operations as well as its senior executive team.”
What does the Red, Green and Orange Line have in common? The benefit of transporting the influx of employees to the newly leased up space in Downtown crossing to all the startups priced out of the Seaport and Cambridge.
W. Marc Bernsau of the Boston Business Journal reports, “the available office space in Downtown Crossing plunged by nearly 40 percent in two years as a wave of startups priced out of Kendall Square and the Seaport arrived in search of real estate bargains.”
The office market is strong within greater Boston and hasn’t this active with positive rent growth and absorption since 2007. This is due to a couple of components; flight to quality, migration to Boston from suburban markets, new companies entering the market and companies within Boston expanding.
The Boston Business Journal notes, the strength of the market; “greater Boston’s office market achieved more than 2.8 million square feet of positive absorption last year, the strongest showing since 2007”
Photo Credit: John Tlumacki via Boston Globe/Boston.com
Boston Properties is mulling options on how to integrate retail amenities and a host of restaurants into the tremendous presence in the Financial District, at 100 Federal Street.
Boston Globe writer, Casey Ross, wrote on Boston.com, “the project at 100 Federal St. is still in its preliminary stages. But owner Boston Properties Inc. is seeking to create a more vibrant gathering space by adding new retail offerings at the base of the tower, which stands across from Post Office Square Park…The company is weighing several different options, including enclosing a portion of the plaza in a glass structure for restaurants and food-oriented retail businesses.”
Photo Credit: Elkus Manfredi Architects via the Boston Globe
As the vacancy rate in the Financial District continues downward tenants seek out opportunities of value. Case in point, Brown Brothers is moving its offices to 50 Post Office Square. Brown Brothers took this opportunity to consolidate its workforce into one location and capitalize on a building that has been owner occupied since its construction in 1947.
The Boston Globe notes, “Brown Brothers Harriman & Co., the oldest privately held financial institution in the country, is moving to a historic building in Boston’s Financial District, signing one of the largest leases in the city in recent years.”