The amount of available office space in Boston’s Financial District has reached a five-year-low. While much of this can be credited to the ongoing economic recovery, brokers attribute the rebound to the influx of companies moving downtown.
With limited available space and rents still as high as $50 per square foot in Kendall Square and the Seaport, many tech and startup companies have already begun to move downtown. According to Cassidy Turley, asking rent growth in the Financial District and surrounding area has been essentially flat for the past year at $32 per square foot.
In addition to cheaper rents, these companies are also looking to invest in the Hub’s wealth of young talent. Millennials tend to prefer centralized office locations, giving companies another incentive to relocate downtown.
There is clearly a trend emerging here of companies turning to this area to expand their businesses. Much of the downtown office space relies on smaller floorplans, which is ideal for startups or large tech companies looking for a satellite office.
ABG Commercial Advisors views the office sector as one of our primary areas of expertise, as we have multiple office spaces available for lease in downtown Boston at reasonable rates below the market price. These offices are are situated in centralized, highly exposed areas such as the aforementioned Financial District. (Cassidy Turley, BBJ)