BNY Mellon's Lease Commitment Speaks to Downtown's Strength

BOSTON—BNY Mellon's decision to renew its lease at One Boston Place in Downtown Boston is a testament to the continued strength of the area and specifically to the growing vitality of the Downtown Crossing district.

Brokers involved in the 15-year lease renewal by BNY Mellon for approximately 250,000 square feet at the One Boston Place property say that the financial services firm performed an extensive review of sites in the area before agreeing to the renewal at the 41-story office tower at 201 Washington St. BNY Mellon has been the anchor tenant at the property known in the city as the BNY Mellon Center since 1980.

While some firms have decided to relocate out of downtown of late, CBRE/NE president and co-managing partner Andy Hoar says the Downtown District, and particularly the Downtown Crossing area, has seen considerable office space absorption. The availability rate for Class A space in the Boston CBD was 13.1% at the end of the fourth quarter of 2015 with 886,000 square feet of positive absorption posted for the year.

CBRE/NE's Hoar, Chris Cuddy, Peter Dominski and Kristen Blumetti represented One Boston Place owners TIAA-CREF and Ivanhoe Cambridge in the transaction. JLL's Bill Barrack, Ben Heller, Bryan Sparkes, Jessica Hughes, Michael Berg and Peter Riguardi represented BNY Mellon.

Barrack, a managing director at JLL, states that BNY Mellon conducted an extensive search of the market for more than two years before deciding to stay put at One Boston Place. He adds that the decision was "driven by One Boston Place's powerful infrastructure, Downtown Crossing's dynamic amenities-rich environment, and the strength of owners TIAA-CREF and Ivanhoe Cambridge."

"We're proud to be able to further our longtime presence in Downtown Boston with this lease renewal," says Chip Logan, director of global real estate for BNY Mellon. "Since 1875 we've shared a rich history with the city as a contributor to both its economic growth and the community. We look forward to working with the ownership team at One Boston Place on the new amenities we'll be able to offer our employees."

A perk that helped seal the deal with BNY Mellon was a commitment by the building ownership to undertake a multi-million dollar renovation on the first and second floors of the building that will include an outdoor terrace and conference center on the second floor and a health and wellness center on the first floor. He says TIAA-CREF and Ivanhoe Cambridge's decision to spend capital "to make sure that One Boston Place was going to be a high performance building that would meet the needs of BNY Mellon moving forward," was key to finalizing the renewal deal.

The renovation work that will enhance One Boston Place's amenities will also include the reactivation of approximately 7,000 square feet of retail space on the first floor on the Court Street side of the building, Hoar notes. He adds that the ownership will be targeting high-end restaurant users for some of that formerly underutilized BNY Mellon space.

Hoar says that companies such as CBRE, which maintains offices at 33 Arch St., as well as BNY Mellon and others, have seen the palpable positive changes that have taken place in the Downtown Crossing area. He credits the work of the Downtown Boston Business Improvement District in Downtown Crossing's resurgence.

"Large long-term transactions like BNY Mellon's re-signing at One Boston Place are a testament to the strength and continued popularity of Downtown Crossing for large office tenants," says Rosemarie Sansone, president & CEO of the Downtown Boston BID. She notes that in 2016 more than 470 residential units are opening in the district, with more than 1,000 planned in the future.