Credit: Flickr/Emmanuel Huybrechts
The office market in Back Bay is vibrant and alive with activity. It’s 18M square feet not only boasts the 1st (200 Clarendon Street) and 2nd (Prudential) tallest buildings in New England, but also will possess the tallest residential building (1 Dalton) as well.
Vacancy is down and cost of occupancy has increased. Newbury Street office rents can range from upper $40’s t0 low $70’s per square foot.
“I think Back Bay has the amenities, the public transportation and all the attractive features a company is looking for,” said Avison Young principal Ron Perry, who is speaking at Bisnow’s Boston Office of the Future event later this month. “At night, it’s alive with restaurants. Traditional firms like it, and they’ve done a good job lately in making that appeal to technology companies.”
“Boston has an amazing talent base with great universities, a strong diversity of industries and an innovative culture,” Wayfair Head of Real Estate and Workplace Services Reed Gilbert said. “Wayfair’s headquarters, centrally located in Boston’s Back Bay, makes it easy for employees to bike, walk and take public transportation to work.”
Back Bay Office Space for lease
Last week I took a tour of the 48th floor at 200 Clarendon Street with Wayland Club Scouts, hosted by Patrick Mulvihill of Boston Properties, and “wow” was the comment echoed by all the scout’s and their parents. Now, the floor was completely shelled out with nothing but a cement floor, deck above and exterior windows. It was a great experience and the perfect perch to see how our city is growing vertically.
The growth, however, is consolidated in a few central areas – all of which were perfectly visible from the 48th floor.
“Tim Logan broke down recent numbers from the Boston Redevelopment Authority that show 83 major projects going up in 19 of the city’s 25 neighborhoods for a total cost construction-wise of around $7 billion. “Yet they’re concentrated in a relative handful of places. About $4 billion worth of the construction — it includes everything from housing to hotels to new storefronts — is taking place in just three neighborhoods: the Seaport, downtown, and the Back Bay. Count the number of projects, and nearly a fourth are in two neighborhoods: South Boston and the Fenway.”
Good bye to the JHT, John Hancock Tower, hello 200 Clarendon Street.
Landlord Boston Properties has formally renamed New England’s tallest building, the 60-story John Hancock Tower, now that Manulife’s John Hancock Insurance division no longer occupies any office space in the mirrored glass rhomboid.
“We’re not allowed to call it (the Hancock Tower) anymore as the Hancock Manulife lease expired at the end of the second quarter,” Boston Properties President Douglas Linde said during a conference call today.
Boston Properties acquired the property in 2010 for $930 million. Leases by John Hancock and State Street Corp. totaling 414,000 square feet recently expired, increasing vacancies in the 1.7-million-square-foot tower. Boston Properties is repositioning the former State Street offices as tech space under the “120 St. James” name, reflecting a new entrance on that avenue.
What are your taxes going up to in Boston? 200 Clarendon Street, The John Hancock Tower, takes the prize with the largest bill at $20,204,640 or $11.51 per square foot. The building last traded 4 years ago for $930,000,000.
To provide some perspective (or piece of mind) on the impending tax hike, Bostinno.streetwise.co posted stats on six notable Boston buildings:
Highest Gross Tax
• Address: John Hancock Tower, 200 Clarendon St.
• Gross tax: $20,204,640
• Land assessed value: $111,925,200
• Building assessed value: $536,074,800
• Total: $648,000,000
• Land sf.: 73,143
• Year built: 1976
• Year remodeled: 2012
• Gross area: 2,082,040
• Floors: 62
• Owner: BP Hancock LLC
• Zip code: 02116