What’s hotter than hot these days?
Commercial real estate.
Hey, all that pension fund money has to be invested somewhere, right?
According to the 1st-quarter 2007 from Jones Lange LaSalle:
In Downtown Boston, the lack of new construction is placing considerable strain on supply.
Scarcity of high-rise tower space has contributed to landlord confidence and quoted rents for premium tower view space have spiked to $67-$80/s.f.
The Class B market has also benefited. Cambridge rents for the best space have also climbed to the mid $40s and scarce availability of premium space in suburban Waltham has encouraged rents in the $40/s.f. range. A
Adjacent suburban submarkets will increasingly benefit due to available options and competitive, though increasing, rents.
And, the big news for the quarter (as previously announced)?
Ropes & Gray LLP has signed a letter of intent to occupy 15 floors at the top of the 52-story Prudential Tower in the Back Bay, owned by Boston Properties. They will relocate to 400,000 s.f. now occupied by Gillette late in 2010, moving from approximately 350,000 s.f. in One International Place.
The Bank of New York, having announced a merger agreement with the Mellon Financial Corp., has leased 47,666 s.f. at 222 Berkeley Street, in Back Bay.
What’s that, a non-Boston company moving into the city??? Unheard of!