0 Sales of New Boston Office Towers to Boost Rent Prices

Posted on November 21, 2014 by Wil Catlin

Credit: Banker&Tradesman

Office rents will continue to rise and I expect this to continue through 2015 and into 2016. The buyers of the recent office buildings will be looking for their return on investment and that will come from increasing the price per foot they charge tenants.

Banker & Tradesman reports the stage was set “for the big rent hikes to come has been a frenzy of office tower sales in the Financial District, Back Bay and Seaport over the last six months…More than 5.5 million square feet of office tower space changed hands or has been placed under contract between July and September, Collins and Regensburg note in a piece for the New England Real Estate Journal. Another 4 million square feet has hit the market or is about to.”

Additional details on the new office towers and projected office rent rates is available on Banker&Tradesman’s website, here.

0 Strong Demand Keeps Boston Office Rents Rising

Posted on October 5, 2014 by Wil Catlin

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.’”

0 Tech Companies Drive up Office Rent in Boston

Posted on August 23, 2014 by Wil Catlin

Credit: BetaBoston

Boston ranks 7th in office rent growth compared with 20 other cities over the last 24 months. The reason for the expeditious growth rate, according to a study released this week by CBRE Group Inc., and posted on Banker & Tradesman, is the “growth of high-tech employment [that] helped drive double-digit office rent increases in Boston over the last two years.”

More information is available on B&T’s website.