Boston goes from warm to hot in Q3

Q3_BostonDowntown

Short on time? Here are the highlights of our third quarter Downtown Boston Office MarketView. To request the full report, fill out the form at the bottom of this post.BostonDowntownQ3

Activity continued to ramp up in the third quarter in the Downtown Boston Office market, which culminated in over half a million sq. ft. of positive absorption. All three of the core downtown submarkets contributed to this strong showing, and the trend continued into the smaller markets as well.

A good percentage of the absorption outcome was due to two headline-making moves: technology company PTC is relocating its headquarters from Needham and Alexion Pharmaceuticals relocating its headquarters from Connecticut, both landing at 121 Seaport Square, a 17-story tower that is currently under construction in the Seaport district. Construction began on the building without any major tenants lined up, but with these deals it is now 100% preleased. PTC’s 250,000 sq. ft. lease is the largest in Boston this year, and the firm will bring over 1,000 employees to the Seaport.

PTC and Alexion Pharmaceuticals are the latest in a string of prominent companies to relocate to Boston from the suburbs, with many of these tenants choosing the Seaport as their new home.

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.

It’s almost time to say goodbye to our 2017 Summer Interns

GoodbyeInterns-Email_2017.png

2017 NEVYs Recap: A High-Energy Celebration of Boston’s Innovation Economy

On May 17, 2017, the New England Venture Capital Association (NEVCA) hosted one of Boston’s biggest award shows. For the past five years, the NEVYs have brought together the growing Tech and Life Science communities, all under one roof. This year’s event was held at Boston’s House of Blues.
iStock-507286274.jpg

Awards were presented to Tech and Life Science finalists in the following categories:

Healthcare & Life Science

  • Deal of the Year: Jounce Therapeutics, Inc.
  • Digital Health Company of the Year: Rest Devices
  • Entrepreneur of the Year: Kurt Graves, Intarcia Therapeutics
  • Exit of the Year: Nimbus Apollo
  • Fund of the Year: Third Rock Ventures
  • Hottest Early Stage Startup – Therapeutics: Magenta Therapeutics
  • Hottest Early Stage Startup – Tools & Tech: 3Derm
  • Rising Star VC: Michael Gladstone, Atlas Venture

Tech

  • Angel of the Year: Joe Caruso
  • Clean Tech Company of the Year: Sense
  • Entrepreneur of the Year: Ric Fulop, Desktop Metal
  • Fund of the Year: Highland Capital Partners
  • Hottest Early Stage Startup: nuTonomy
  • Next Pillar Tech Company: Turbonomic
  • Rising Star Entrepreneur: Liz Powers, ArtLifting
  • Rising Star VC: Juan Luis Leung-Li, General Catalyst
NEVYs.jpg

CBRE/NE’s Amarante & Brinch present Third Rock Ventures with the Fund of the Year award for Healthcare & Life Science (Courtesy of the NEVCA)

Congratulations to all of this year’s NEVY nominees and award winners!

For more information about the NEVCA and CBRE/New England’s expertise in Tech and Life Science communities, please reach out to Adam Brinch or Nick Amarante. Follow the NEVCA on Twitter for updates on upcoming events and other networking opportunities.

Boston starts the year slowly, but has plenty in store

Screen Shot 2017-05-08 at 10.56.10 AM.png

Short on time? Here are the highlights of our first quarter Downtown Boston Office MarketView. To request the full report, fill out the form at the bottom of this post.

iStock-614436122.jpgIt was a relatively quiet quarter for the Downtown Boston Office market, echoing a theme seen across many of the Greater Boston submarkets—but with an unemployment rate of only 3.7% as of February, Boston’s positioning remains strong.

Vacancy was up to 8.6%, the highest it has been in three years, but asking rents continued to edge upwards.

Bifurcation of Class A and B rental growth has slowed: while in the past year Class B properties had seen much greater gains in comparison to Class A, in Q1 2017, both saw only modest gains.

Most of the activity in the quarter was seen in value low-rise Class A space in the Back Bay. This type of space can be particularly appealing to Cambridge tenants who want to remain in the urban core, but are being priced out of the options on the other side of the Charles River.

CBRE/NEW ENGLAND WINS BIG AT THE CBA ACHIEVEMENT AWARDS!

By Taidgh McClory, Managing Director/Partner, Advisory & Transaction Services

Every year, the Commercial Brokers Association (CBA) honors the best and brightest in the Greater Boston brokerage industry, highlighting all-star deals and individual achievements in several different categories. This is the equivalent of our academy awards for all our brokerage teams’ accomplishments as recognized by our industry peers.

This year CBRE/New England stood out as a dominant force at the awards, taking home five out of a potential 11 awards. Topping the list of this year’s recipients was our Rising Star of the Year, Suzie Brown. Her hard work and effort earned her the top award amongst a competitive field of 10 other finalists.

IMG_1990.JPG
On behalf of the entire company, congratulations to Suzie and all this year’s winners, our clients and the finalists! We continue to be proud of our employees, our collaboration and our market leadership as a
world-class company.

Below are the CBRE/NE finalists for 2016’s CBA Achievement Awards.

Rising Star of the Year
Suzie Brown
Vice President, Urban Team – Advisory & Transaction Services

Community Impact Deal of the Year 

Community Impact.jpg
Mount Auburn Hospital
85,226 RSF
725 Concord Avenue, Cambridge, MA
Davis Marcus Partners
David Fitzgerald, Robert FitzgeraldTim Howe

 

Industrial Deal of the Year

150 Blackstone River Road Building Photo.jpgRepositioning of 150 Blackstone River Road
632,000 SF
Worcester, MA
GFI Partners
Bob Gibson, Steve Clancy, Rachel Marks, Doug Rodenstein

 

Suburban.jpgOffice Deal of the Year – Suburban
Kronos at Cross Point
505,664 SF
900 Chelmsford Street, Lowell, MA
Anchor Line Partners and Farallon Capital Management
Mark Reardon, Peter Dominski, Alex Plaisted, Benjamin Roopenian, Diane Harris

Retail Deal of the YearCBA - Eataly
Eataly
53,000 SF
Prudential Center, Boston, MA
Boston Properties (also this year’s Landlord of the Year)
Jeremy Grossman

 

 

To learn more about the night, please read more here or watch a full recap here.

Where the WIRED Things Are: Exploring Your Building’s Connectivity & Infrastructure

CBRE/New England works with several clients to pursue WiredScore Certification, the international standard for cutting-edge internet connectivity in office buildings. Recently, three office buildings in our leasing portfolio within the Greater Boston area have achieved Platinum and Gold Wired Certification for having best-in-class connectivity infrastructure—One Boston Place and 33 Arch Street, both owned by TH Real Estate, and 451 D Street, owned by a joint venture between Meritage Properties and Commonwealth Ventures.

33 Arch_Entrance.jpg

33 Arch Street – Platinum Wired Certification

To achieve Wired Certification, properties must meet a rigorous set of standards developed in conjunction with the top minds in the telecom and commercial real estate industries. The accreditation has proven to be a popular accolade amongst Class A and Class B buildings, citing further claim to which assets are more efficiently set up for today’s demanding tenancies.

“Network connectivity has become increasingly more important to corporate occupiers as the adoption of cloud computing, office collaboration, and telecommunicating gains momentum. It is imperative for building owners to provide their tenants with best-in-class connectivity options to stay relevant and competitive in the market. WiredScore has provided a great platform for owners to showcase their technology infrastructure in a concise and standardized manner.” – CBRE/NE’s Rich Modliszewski

451_DStreet__Lobby

451 D Street – Gold Wired Certification

By distinguishing buildings with the best tech capabilities, Wired Certification makes information about internet connectivity more transparent than ever before, enabling commercial buildings to benchmark themselves against a single standard and upgrade their offerings and allowing businesses to identify the best buildings in which to grow.

OneBP_vertical_view.jpg

One Boston Place – Platinum Wired Certification

For more information about the WiredScore program and CBRE/NE’s expertise in Data Centers & Telecom, please reach out to Rich Modliszewski and Brad McLaughlin.