Would you take a $320 million gamble? It appears the Boston office market will embrace it. We have seen office vacancy’s drop while rents have continued upward over the recent years. The Boston office market has tremendous barriers to entry for new product, thus creating a supply and demand problem. Tenants are anxious to capitalize on the benefits of new construction, which allows them to be more efficient with the square footage per employee.

Developer Samuels & Associates is attempting to capitalize on the trend, beginning construction on a new office building on Boylston Street in Fenway. An article on the Boston Business Journal’s website reports:

Samuels & Associates is underway with construction of VanNess, a $320 million mixed-use project fronting on Boylston Street near Fenway Park. Slated for completion in 2015, the project is designed to include two buildings: an 8-story building housing 232,000 square feet of office space and another 11-story building with 172 residential apartments. The development also will include 210,000 square feet of retail space anchored by a 170,000-square-foot City Target, a new small-footprint store format launched by Target Corp. last year. There will also be about a dozen other retailers.

The full article is available on the BBJ.

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