#FrontierFriday: DTX in Demand

Millennium Tower's plaza will include an amphitheater and shoppers' park. Rendering courtesy of Millennium Partners and Handel.

Millennium Tower’s plaza will include an amphitheater and shoppers’ park. Rendering courtesy of Millennium Partners and Handel.

by Timothy Lyne, Executive Vice President/Partner, Downtown Brokerage

Next up in our emerging market exploration is Downtown Crossing. Having an edge on other growing areas, DTX has been exhibiting steady momentum since Havas/Arnold Worldwide announced plans to relocate from the Back Bay, kicking off Millennium Partners’ mixed-use project of the rehabilitation of the Burnham Building and new construction of Millennium Tower. Here are some highlights of why DTX is becoming the next Boston frontier:

Power of the Red Line: Access is excellent, however direct MBTA Red Line access is icing on the cake, a vital requirement for tech tenants and especially those migrating from the ever-tightening Cambridge submarkets.

Refreshing Restaurants: New establishments continuously open, from fresh daytime options such as Caffe Nero and Pret A Manger, to nightlife-enhancing destinations such as Legal Crossing and Merchant.

Historic Retail: Taking the majority of available space left at the Burnham Building, European retailer Primark signed a lease during the second quarter for 110,000 square feet of office and retail space, while last year Walgreens opened a flagship location on School Street that filled the vacancy left by Borders. Most notably, Downtown Boston will gain its first large-scale grocery store, with Roche Brothers opening a 25,000 square foot store across the Burnham Building/Millennium Tower.

Residential Fury: Downtown Crossing is a prime example of the extremely active residential market, with new towers such as Radian Boston, The Kensington, Millennium Tower and Millennium Place.

Tenant Trends: With these increases in amenities and market buzz, Downtown Crossing has become increasingly popular for tenants. Technology companies, start-ups and tenants priced out of the Seaport and Cambridge have found affordable options in DTX, dropping the average Class B vacancy rate in the DTX area to just under 5%. Class A assets are also seeing healthy activity, as seen by many recent deals at buildings such as 101 Arch Street and Lafayette City Center.

 

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