Office Building in Demand: 121 High Street in Boston’s financial district (click for property details)
Today there are fewer options for office tenants to occupy, along with with increased office rents. Combine this with additional tenant improvement dollars that have been pushed downward, and free rent has become obsolete. What does that mean? We are in the midst of a landlord market.
From The Boston Globe:
“Strong growth of technology and financial companies is increasing office rents across the region and fueling proposals for new office buildings from Route 128 to Cambridge and downtown Boston…In Boston, rents for top-rated space ticked up to $51.79. That represents only a slight increase from last year, but several large companies have recently committed to leasing new space in the city, including Natixis Global Asset Management and Sonos Inc., a wireless speaker maker.”
“’A lot of younger workers want to be in the city, and that’s very clearly driving companies’ decisions,’ said Bob Richards, a partner at Transwestern RBJ. ‘That trend is definitely deepening.’”