State Street Corp. Leases 187,000 SF on Federal Street

BOSTON-In a deal that eliminates a precious block of office space in the city’s Financial District, State Street Corp. has leased 187,000 sf at One Federal St., a 39-story office tower owned by the IBM Pension Fund. The space became available last year following the merger of Fleet Financial Corp. and BankBoston.

The space at One Federal St. represented one of the few large offerings of office space in Downtown Boston, following on the heels of Equity Office Properties leasing virtually all of 400,000 sf left over at 100 Summer St. by the departure of Blue Cross and Blue Shield of Massachusetts. While 265 Franklin St. will have nearly 200,000 sf come on line over the short term, most of the Financial District space is spoken for, with Spaulding & Slye reporting a 1.5% vacancy rate for the 31.2 million sf market.

State Street Corp., a diverse financial services and banking company, is one of the state’s largest employers. The firm was represented by Trammell Crow senior vice president John P. Barry. Joanna Dresser of Insignia/ESG acted on behalf of the landlord.