X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BEDFORD, MA-Headlined by the pending sale of 100 Crosby Dr. to Divco West Group LLC, this tech-saturated suburb is enjoying a quick start to the second quarter. Leasing activity is brisk enough that the new owners of 201 Burlington Rd. say they will speculatively redevelop 50,000 sf of space to first class caliber, while a report from GVA Williams puts the vacancy rate on Route 128 at 12%, the lowest since 2001.

“The market gets better every day,” says Meredith & Grew SVP Matt Daniels. “We’re obviously in a recovery.”

Sources could not say exactly how much Divco is paying to secure the four-story, 285,000-sf office building, but insist the asset is under agreement and is expected to close within the next few weeks. Based in San Francisco, Divco is a private real estate investment firm specializing in technology-focused markets such as Austin, TX, San Francisco and Silicon Valley. Built in 1982, 100 Crosby Dr. was anchored by Computervision Corp. through the 1990s, but is now a multi-tenanted property leased to such firms as By Appointment Only, InteQ and MRO Software. Eastdil Secured’s Boston office is reportedly handling the sale for the ownership, United Trust Fund of Miami, but calls to the brokers were not returned by press deadline.

Meanwhile, Daniels tells GlobeSt.com that Cresset Development Group LLC will overhaul a vacant structure at 201 Burlington Rd. after purchasing the two-building office park in January for $7.3 million. The 50,000 sf should be well received by tenants, says Daniels, but not in its current condition. “The space is tired,” he says, and suitors often cannot see a property’s potential prior to a makeover, so Cresset has decided to move forward. “We assessed the marketplace and determined that it could support [the project], and want to be ready to meet the demand,” says Daniels, a SVP at M&G.

Daniels and M&G assistant vice president Joseph Crowley are exclusive leasing brokers for 201 Burlington Rd., which is located at the intersection of Routes 3 and 62, and has a slip ramp leading onto Route 3. “The access is unbeatable,” says Daniels. The front building of the 130,000-sf property is fully leased over the near term to Reveal Imaging, and the one-time Polaroid Corp. facility can accommodate another 30,000 sf of new construction, Daniels says. That portion will not be built until the spec space is leased, he says.

Even as that process gears up, Bedford is seeing leases signed to start the second quarter, with sources maintaining that Data Intensity has agreed to take 16,000 sf in a building owned by Rreef Funds at the Crosby Corporate Center. GVA Williams principal John Hennessey, broker for the tenant, declined comment, while calls to landlord broker Cushman & Wakefield were not returned by press deadline.

Hennessey did concur that Route 128 has seen a significant improvement during the past 12 months, adding he believes downtown companies facing record rent increases will consider that beltway as a reasonable option. The GVA Williams report confirms deals in Waltham have exceeded $40 per sf, and Hennessey says rent increases are moving up the roadway into Bedford, Burlington and Lexington. “The new owners are clearly going to push rents,” he says, but adds there will remain bargains compared to the Hub’s Financial District and Back Bay submarkets.

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.