Boston ranked #7 in CBRE’s 2018 Scoring Tech Talent report

LinkedIn_Elevate_1024x512 (1).jpgCBRE recently announced the top 50 North American markets for scoring tech talent and Boston ranked as #7, up two spots from 2017. The Scoring Tech Talent Report ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. The Tech Talent Scorecard is determined based on 13 unique metrics, including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth, and market outlook for both office and apartment rent cost growth.

Tech labor concentration—or the percentage of total employment—is an influential factor in how “tech-centric” the market is and its growth potential. Boston has a tech talent labor pool of 113,960, or 32.58% of its total employment, compared to the national average of 3.5%.

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Americas Head of Research for CBRE, Spencer Levy, shares why Boston is a top Tech Talent market and potentially could be a top three contestant within the coming years. Click here to view the video.

I would not be surprised that it could end up in the top three, just behind San Francisco and Seattle within the next couple of years.

Levy makes reference to Boston’s brain drain. Boston has an abundance of tech talent and produces more tech graduates than jobs, making it a great market for expanding tech companies. Between 2011 and 2016, Boston’s tech degree completions increased by 57% and as of the most recent data, ranked fourth among the markets producing the most tech graduates.

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In the clip, Levy shares his perspective on Boston’s Brain Drain market status and his prediction for the future of Boston.

Boston has a tremendous amount of pent up growth as large employers can move to the market to places like the Seaport District, which is growing like gang busters—almost 11 MSF in the Seaport District that was not there a few years ago that are using that talent base to form new jobs in the Boston market. This brain drain element of Boston is going to be absorbed soon with new employers moving into Boston making it already a top 10 Tech Talent market of the United States.

It’s almost time to say goodbye to our 2018 Summer Interns

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Art in and around office buildings

Not until recently has art been looked at as a Class A office building essential to help differentiate the space, engage the employees and create an environment that is fun to work in. Here are a few examples of art in our CBRE/NE-managed office buildings:

OneWashington_ForOnlineMediaRoom3One Washington: Courtesy of the Boston Public Library, a digital back-lit photo of the historic Scollay Square was revealed this February in a ceremony hosted by The Georgetown Company in the lobby of One Washington in Boston. The inspiration and design came from the architectural firm Gensler. The original photo was taken in 1942 by the late Boston Herald-Traveler photographer Leslie R. Jones. Leslie R. Jones was standing roughly in the footprint of the One Washington building and shooting towards Government Center, which was then known as Scollay Square. Leslie R. Jones worked for the Boston Herald-Traveler newspaper for 39 years starting in 1917. He started his career as a patternmaker in a Boston factory while practicing photography on the side. Jones was injured at the factory, which ultimately led to his decision to become a full-time photographer. His wide range of Boston photographs (approximately 34,000 photographic plates) can be found on the fifth floor of the Boston Public Library and are also accessible by visiting The Digital Commonwealth online (www.digitalcommonwealth.org). The large installation revitalizes the lobby for all passing through to enjoy.

Riverfront Office Park, 1 and 101 Main Street, Cambridge: Riverfront Office Park, located in Kendall Square, has brought in the deCordova Sculpture Park and Museum’s Corporate Program to outfit their lobby interior and window bays with new paintings every six months. This rotational program ensures that both spaces are freshly accessorized with artwork from different New England artists. The window bay installations have provided the full city block between 1 Main Street and 101 Main Street with a charming “art walk” for tenants, local community and visitors. This membership allows tenants free passes to the deCordova Museum. Patrick Giroux, Tenant Coordinator for the property, states, “The whole building, from our engineers who maintain the art walk to our tenants, is very supportive of the art. Working with deCordova has been seamless.” Currently, the lobby has 12 sculptural paintings by Cambridge artist Vanessa Irzyk. Stay tuned for their next artwork rotation in July, which will feature hand-dyed fabric installations by Geddes Levenson and more traditional oil paintings by Annie Blazejack.


101 Seaport Boulevard: The story of how 101 Seaport Boulevard amassed its outdoor sculpture is unique. Construction workers, while excavating the adjacent site’s garage, came across a 125-year-old wooden ship. The developers of the project, Skanska, commissioned Public Archeology Laboratory to investigate. Results from the investigation showed that this was a 65’ two-mast cargo schooner used for transporting lime to be used in construction. Evidence suggests that the ship was from Rockland, Maine, and was abandoned after a fire on board. From the late 1880s to the 1930s, the Seaport neighborhood was slowly filled in right over where the schooner was located. Railroads, wharves and warehouses were built on this new land.


Fast forward over 100 years and a replica of the ship is now “floating” between 101 and 121 Seaport Boulevard. You can find out more on the ship by the online app “Harbor Way” by Skanska, or by taking the Harbor Way tour. The sculpture provides an interactive experience, for employees, community members and tourists to experience the story of the schooner.

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Another option for including art in office buildings is to partner with ArtLifting, an organization that sources local art created by people living with homelessness or disabilities. CBRE’s Radnor, Nashville, Oak Brook, Houston and Dallas offices have worked with ArtLifting to outfit their offices. ArtLifting was founded to help businesses of all sizes enhance their offices with wall art or wall coverings while giving back to the community. The firm also has a corporate gifting option and a B2C line of art.

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Recap: 2018 CBRE/New England Boston Market Overview

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It was a great honor to have both Mayor Marty Walsh and Governor Charlie Baker speak at our 2018 Boston Market Overview.

This year, CBRE/New England representatives from our Downtown, Cambridge, Capital Markets, Suburban, Retail and Industrial teams all gave poignant market insights and takeaways for 2017 while looking forward to the year ahead. The group was moderated by Spencer Levy—Americas Head of Research for CBRE and a senior member of the company’s global research team—who opened the discussion on domestic and international trade, healthcare, taxes, industrial and retail agility, as well as the importance for businesses to follow talent.

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Urban (Downtown & Cambridge) – Jon Freni, Senior Vice President/Partner; Carolyn Wheatley, Associate
Freni and Wheatley kicked off their 2018 IMG_2384-2market insights with the ever-present growing industry: co-working. Freni stated, “Tenant or landlord, this will be the big debate in 2018 and will continue to change the way we do business. Whether you like it or not, co-working is here in a big way. Embrace it and look for ways to compete with it.” Freni continued with two additional market insights that are increasing in popularity: ‘spec success’ and risk-reward deal structures.

Wheatley spoke of three market insights in Cambridge: the increasingly life-science-driven tenant base for both office and lab space, spec developments that meet the supply needs of the low vacancy market, and market risk-reward deal structures that are currently landlord-favored.

Capital MarketsDave Pergola, Executive Vice President/Partner
Given the complexity of investing in New England commercial real estate, Pergola broke the investment market into three categories.

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“In closing, CBRE/NE believes that if you have some conviction and the right type of capital to invest, the best opportunities in 2018 will be large, high-quality suburban office buildings.”

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Suburban OfficeAlison Powers, First Vice President
Powers started off her talk by debunking a common 2017 theme. “[…] despite the headlines signaling otherwise, the market was actually quite active in 2017 fueled by an incredible amount of leasing velocity driven by organic growth (I promise you not every suburban tenant moved to the Seaport) as well as continued momentum from the life sciences sector.”

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A select number of suburban landlords thrived because their space was large, scalable, high-quality and/or new real estate, with amenities and an accessible location.

RetailMatt Curtin, Senior Vice President/Partner
Next up was Matt Curtin who spoke about how changing consumer behaviors are forcing both retailers and landlords to step it up. He mentioned L.L.Bean and lululemon as two examples of traditional retailers who have integrated experience into their lifestyle brands. L.L.Bean will offer kayak and paddle board at its new Seaport Square location and lululemon offers fitness classes inside and outside of their stores. Matt also highlighted how entertainment concepts, craft beer, fast-casual restaurants, mobile app ordering and “clicks to bricks” retail trended in 2017 and is expected to blossom in 2018.

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IndustrialRachel Marks, Vice President
Rachel Marks closed out the market talks by focusing on the importance of industrial warehouses in Greater Boston as consumer expectations of convenience continue to grow, and people are comfortable buying more online. The changing habits of consumers force omni-channel distributors to deliver product quickly and inexpensively, which means they now need to occupy space close to large population centers like Boston. Other demand drivers in the industrial market include breweries, marijuana cultivators, biopharma manufacturing, technology and medical devices. With all this demand, there is currently a major shortage of quality industrial supply in New England.

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Visit the CBRE/New England Vimeo page for videos from the event. Stay tuned for our next post, where we will reveal what our Hartford experts covered at this year’s CBRE/NE Hartford Market Overview.

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Just Released: CBRE/NE 2018 New England Market Outlook

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Spotlight on A: Next Development Destination for Boston’s Seaport

By Jonathan Freni, Senior Vice President/Partner, Advisory & Transaction Services

The third quarter of 2017 saw two more in a long line of large tenants announcing plans to relocate to Boston’s Seaport District. Both PTC and Alexion Pharmaceuticals will move to Skanska’s 121 Seaport when the new building delivers in early 2019, following suit to companies such as Amazon.com at Synergy’s 253 Summer Street, Red Hat at Bentall Kennedy’s 300 A Street and GE’s new headquarters. With the submarket quickly filling up with new tenants, demand for new development continues to increase. So where is the next hot spot for the next round of Seaport transplants?

Parkside on A, a 248,000 square foot development from the ownership team of CV Properties and Ares, combines a Seaport location with direct access to the holy grail of a tenant’s wish list: the MBTA Red Line. Additional highlights include on-site parking, potential branding opportunities, multiple roofdeck opportunities and an on-site amenities center. But don’t take our word for it, check out the video below and the newly launched website and see for yourself.

 

For leasing inquiries or more information on Parkside on A, please contact andy.hoar@cbre-ne.com, jonathan.freni@cbre-ne.com or timothy.howe@cbre-ne.com.