X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

BOSTON-The Bay State’s hot condo market is expected to take between one million and two million sf of office space off the books this year, tightening up Boston’s office market in several areas of the city. Richard Lowe, a principal at Cresa Partners and head of the firm’s Boston Market Group, tells GlobeSt.com that several officebuildings in the city’s Fort Point Channel area and the Back Bay have already been converted to residential use, tightening the market for office space in both sections of the city.

“In some of these markets like the Back Bay, the market is tight because a lot of displaced tenants have to go somewhere and it is causing rents in class A space to go up,” says Lowe. He notes that the residential conversion of 360 Newbury St and 441 Stuart St. along with the sale of 73 Tremont St, and 100 Boylston St. to two area universities, have contributed to a tightening of office space in the Back Bay. “There’s more competition for space and less availability.”

The conversion of several office properties in the Fort Point Channel area, including Russia Wharf, is also having an impact on office tenants in that area, Lowe says. Many Fort Point Channel office tenants who moved into that section of the city because of its affordable rents are now looking to across the channel for office accommodations, he says. The same thing is happening in Boston’s Leather District and along the Rose Kennedy Greenway, where office buildings are quickly being converted into residential units. Although many of those buildings are in the B and C class with high-vacancy rates, the conversions leave little space available for large and mid-sized office user who don’t need or can’t afford higherpriced class A properties, he adds.

“We’re not seeing a huge percentage of the overall market(affected by residential conversions,)” says Lowe, “but in some of these smaller submarkets it will have an impact.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.