The deal is good news for the city's market which continues to struggle with a relatively high vacancy rate and declining rents. According to Codman Co.'s spring market report, the city's overall availability rate, which includes sublease space is at 16.9%. The net leasing absorption rate finished the third quarter of the year at negative 700,000 sf. That makes this the ninth straight quarter with negative absorption, something the report indicates the city has not experienced in two decades.
One Beacon, built in 1971, was renovated in 1991. The 34-story building has 1.1 million sf of space and has about 157,000 sf of space available. The vacancy is relatively low when compared with other city buildings, such as 33 Arch St., which has 100% of its 607,000 sf available or 510 Boylston St. which has 320,000 sf of its 575,000 sf available.
David Schaus, senior vice president, northeast regional director of RBC Dain Rauscher points out that "concurrent with the acquisition of the former Tucker Anthony Enterprise, RBC Dain Rauscher voiced its intent of making Boston a flagship office for the company. Extending our lease commitment at One Beacon Street is one of the first steps in building on this commitment." RBC Dain Rauscher is an indirect wholly owned subsidiary of Royal Bank of Canada, headquartered in Minneapolis.
Ron Dion, chairman and CEO of R.M. Bradley and Pamela Galeota, senior vice president of R.M. Bradley represented RBC Dain Rauscher in the transaction. Andrew Hoar and Christopher Cuddy of CB Richard Ellis represented the owner, Trustees of One Beacon Street Realty Trust, a subsidiary of Prudential RE Investors.
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