0 Why are they leaving Waltham for Boston and Cambridge?

Posted on April 5, 2014 by Wil Catlin

Kendall Square commuters rely on the T to get to work in Cambridge, Ma

Credit: MIT

Why are the V.C. firms leaving Waltham for Boston? Is it traffic and higher priced rents? No, the customer is there. Downtown Crossing (DTX) has evolved to being a hot bed of new technology companies that wanted a few simple items. Rents; looking for an affordable option, DTX has Class B rents ranging from the mid to upper $20’s to the mid to upper $30’s PSF. The swing in price is due the specific location, the build out of the space and the condition of the overall building. In addition some buildings have a staffed lobby, while other operate on a key FOB system.

Location; emerging companies are competing for a hot commodity, talented staff. Location becomes a huge factor what that young employee doesn’t own a car and relies on the T to get them around. DTX is uniquely positioned at the Red, Green, Blue and Orange lines.

So, that is why the V.C. firms are moving back to the city to pay Class A rents that can start in the upper $40’s PSF and beyond?

The latest Venture firm to vacate Waltham for Boston or Cambridge? North Bridge Venture Partners.

From betaboston.com:

North Bridge Venture Partners, based in Waltham, is planning to move to Boston or Cambridge some time later this year, said general partner Michael Skok. “Our leanings are toward the Innovation District or Downtown, mostly based on entrepreneurs saying it,” Skok said.

The Betaboston.com article on North Bridge Venture Partners is available in full, here.

0 Former Dunkin’ Donuts Location in Financial District Lands New Occupants

Posted on March 31, 2014 by Wil Catlin

Commercial space for rent at 176 Federal Street in Boston

Credit: chartercm

A recent instance of this trend is evident in the move of Pret A Manger made to snag the 2,000 sq. ft. space in the Financial District, formerly occupied by Dunkin’ Donuts.

The BBJ reported on the new occupants of 176 Federal St. in the Financial District, noting it may be just the first of many similar moves for the London-based eatery, “Pret A Manger has been looking to expand in Greater Boston with plans to open a dozen cafes over the next five years. James O’Mara, an attorney representing the eatery, said Pret A Manger will be opening a shop as early as this spring at 101 Arch St. in Boston’s Downtown Crossing at the former Men’s Wearhouse.”

Additional information on the location at 176 Federal Street is available on the Boston Business Journal.

0 Price of Office Space in Boston’s Innovation District Still Climbing

Posted on January 16, 2014 by Wil Catlin

How expensive is the Innovation Districtt? Well, Boston’s Innovation District has pulled neck-and-neck with Back Bay. The Innovation District has benefited from a tremendous influx of tenants that could no longer afford East Cambridge and Kendall Square. Now with prices at or above pre-crash levels, the value play is within the low-rise Class A and Class B office space in the Financial District.

Office space in Boston's Innovation district and Back Bay

Credit: Boston Globe

A managing director at Cassidy Turley, David Campbell, recently commented to the Boston Globe, “the Innovation District has offered the most obvious place for the city to grow…the Big Dig and the convention center and the Ted Williams Tunnel have really made it fertile ground for future development.”

More from Campbell is available in the full article, on the Boston Globe’s website.

0 Boston Office Market Transitions out of Recovery

Posted on January 8, 2014 by Wil Catlin

The Boston office market is in a state of recovery and rents are continuing upward. Within the Class B market, Boston is experiencing reduced vacancy as companies are continuing to seek out value options. Buildings in the Downtown Crossing Class B market have seen strong rent growth in 2013 and are now priced in the low $30’s PSF.

According to the BBJ “the overall amount of available space [in Boston], including sublease space, rose to 18.3 percent in Q4, up from 16.7 in Q4 of 2012. That change reflects nearly 300,000 square feet of negative absorption.”

Additional information is available on the Boston Business Journal website.

0 51 Sleeper Street in the Seaport District Sells for $60.2 million

Posted on December 18, 2013 by Wil Catlin

Credit: Boston Business Journal

The rents in the Seaport/Innovation District continue to climb. Recently the Class B renewals have pushed to $45 PSF, with that in mind we have a record trade of $60.2 million or $400 PSF.

From the BBJ:

TIAA-CREF has acquired 51 Sleeper St. in Boston’s Seaport for $60.2 million, setting a record sale price for the city’s burgeoning Innovation District of roughly $400 per square foot.

The full article is available on the Boston Business Journal.

0 45 Milk Street Goes Under Agreement

Posted on June 1, 2013 by Wil Catlin

Office Building at 45 Milk st. in Boston financial district

Photo Credit: Banker & Tradesman

The Class B Office market continues to see trades within the Financial District. At $302 per square foot this continue to push the market values up.

“Deutsche Asset & Wealth Management, formerly RREEF Real Estate, has agreed to buy the nine-story, 70,000-square-foot office building at 45 Milk St. for about $21.2 million, or more than $300 per square-foot, industry executives told Banker & Tradesman. Anglo Irish paid nearly $34 million for the asset in 2007, just before the financial markets came crashing down,” stated a report on Banker & Tradesman’s website.

The full article is available at B&T online

0 11 Beacon Street, Class B Office Space in Boston Trading Hands

Posted on January 15, 2013 by Wil Catlin

Another Class B Financial District assets is said to trade hands; 11 Beacon is reported to go the Synergy Investments. The Class B market continues to see trades along with increasing rents; currently B product is pricing in the upper $20’s too low to mid $30’s depending on location and improvement package. According to CoStar the vacancy rate for Class B in the Financial District is 11.9 percent as of 12/31/12.

This pdf created by TheRealReporter.com offers details on the Class B office transactions.

0 Synergy Buying Boston’s 2 Oliver St.; Deal Listed by C&W Tops $50M

Posted on January 8, 2013 by Wil Catlin

Office building at 2 Oliver St boston ma

Photo Credit: New England Real Estate Journal

The trades in the Class B market continue; Synergy Investments add 2 Oliver Street to its portfolio. 2 Oliver is a great opportunity for Class B tenants that are in the 10K – 20K range to capitalize on competitive pricing combined with a great location. With over 50K square feet available there are plenty of great options.

According to details published on The Real Reporter, “the 11-story, 223,000-sf office building is an exclusive listing of Cushman & Wakefield on behalf of a local partnership between AEW Capital and Saracen Investments. Sources spoken to peg pricing in excess of $50 million, exceeding industry projections made when put up for sale to open the fourth quarter.”

Jump over to therealreporter.com for more information.

0 Financial District Shows Improvement; Seaport Reigns Supreme

Posted on January 8, 2013 by Wil Catlin

The office market continues to tighten, but the best value opportunities still exit in the Financial District with Class B Rents in the low to mid $30’s.

Banker and Tradesman reports that “Boston’s Financial District registered a vacancy rate of 11.9 percent at the year’s end, an improvement of four percentage points over the year.”

Additional details are available on the Banker and Tradesman website.

0 Tenants Migrate to Class A Buildings in Financial District

Posted on October 4, 2012 by Wil Catlin

Tenants continue their migration from Class B buildings to Class A within the Financial District. With vacancy rates just below 15 percent opportunities for tenants to trade up still exist. Rents within the low rise Class A space will fall in the upper $30’s to low $40’s depending on the building.

Banker and Tradesman reports, “the move is the result of an expansion push by Managing Director Robert Brown, who came to the firm last year.”