Gone are the days when tenants would start looking for Boston office space one-to-two years in advance. Prospective tenants now find themselves shopping for immediate occupancy, and are only interested in spec suites that have been prebuilt by the landlord to meet today’s connectivity demands.
Tech has dominated the ongoing positive cycle in Boston’s office market, and the industry’s reputation as a disruptor has extended into how landlords appeal to potential tenants. While law firms and financial firms are known for making space decisions far in advance, the tech community has compressed the time from site tour to move-in…Their growth is more explosive than a bank or insurance company; thus, they wait until the last minute.
As life science firms turned Cambridge into a lab-dominant market, the historically tech-heavy Kendall Square passed its tech reputation across the river into areas like Boston’s Fort Point and Seaport neighborhoods.
Credit: Boston Globe
The Boston commercial real estate market continues northward with no signs of letting up. 222 Berkeley Street and 500 Boylston Street are set move in a record trade at over $1,150 per square foot.
From the Boston Globe:
The buildings total about 1.3 million square feet in size. A sale for $1.5 billion would put the price at nearly $1,150 per square foot, far higher than the selling prices of other commercial properties in Boston’s key business districts, which rarely top $700 per square foot…The Back Bay buildings are owned by a Blackstone subsidiary, Equity Office Properties, and share an underground parking garage. They are near the Public Garden, the Orange Line and commuter rail trains at Back Bay Station, and dozens of high-end retail shops.
Credit: The Boston Globe
The limited supply of Back Bay options is providing a creative opportunity for landlords. Equity Office (EOP) is looking to add 80,000 square feet of space to the front of 500 Boylston Street.
From the Boston Globe:
“Equity Office Properties notified the Boston Redevelopment Authority Friday of its plans to build an 80,000-square-foot addition in front of the 25-story tower and its main entrance. The company also wants to convert up to 50,000 square feet of office space in the tower to retail…500 Boylston was the subject of controversy even before it opened in 1989. Designed by the celebrated architect Philip Johnson with John Burgee Architects, its postmodern style was divisive.”
Office and work space in Boston continues to evolve to meet the needs of contemporary companies, with additional consideration given to functional atmospheric elements to complement the core layout.
Located on Boylston Street, ZeroTurnaround — a Java productivity tools maker — is one of a number of companies in Boston to design its workspace to match its progressive attitude. In a Boston Herald article about the company’s “fun” work environment, author Ira Kantor describes the company’s Back Bay HQ, “as music fills the C-shaped, 5,500-square-foot space, employees feed off that energy as they start cranking out global phone calls.”
Photo Credit: Thomas Grillo, Real Estate Editor, Boston Business Journal.
The bear has moved to the entrance of the Floating Hospital for Children, at Tufts Medical Center in Boston. The silver of Shreve, Crump & Low has found a new address at 39 Newbury Street. Now, bring on Bank of America at the corner of Berkeley and Boylston Streets.
Thomas Grillo, of the Boston Business Journal, reports that “the bank will occupy about 8,500 square feet on two floors at 440 Boylston St. at the Berkeley Street intersection, one of the most visible locations in the Back Bay, said people familiar with the transaction.
Click here to read the full report on the modifications at 440 Boylston St.
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