BURLINGTON, MA-One Communications–a privately-held competitive local exchange carrier–is taking 75,495 sf in the under-construction 5 Wall St., here. The company is the first tenant in this six-story project, committing to a 10-year lease. The cost of the lease was not disclosed, but the building is leasing in the mid-$30s gross, according to Grubb & Ellis.

One Communications is taking the top two floors in the 182,000-sf building, among other concessions they were able to illicit from Gutierrez, including high-visibility signage on the building and the securing of additional on-site parking. The tenant was represented by managing principal Jim Thomson, EVP and principal Mike Ippolito and managing director Brian Carcaterra from Newmark Knight Frank. The owner was represented by EVP Jack Kerrigan, SVP Steve Cook and adviser Mark Norton from Grubb & Ellis.

The owner, Gutierrez, has a very good relationship with the town of Burlington,” Jack Kerrigan, EVP of Grubb & Ellis, tells GlobeSt.com, “and, more importantly, had excess land, so were able to create extra parking.” Kerrigan explains that other amenities were “very important” to them as well, including covered parking and a large cafeteria and fitness room on the first floor. The size of these spaces was particularly important Kerrigan explains, noting that “this is a regional consolidation.”

The Rochester, NY-headquartered company is consolidating its two Massachusetts offices in Waltham and Marlborough as well as a small sales office, into the building over a 13-month stretch. “They’re phasing in,” Kerrigan points out. “They’re not moving all in one day.” Meaning, the companies will stagger their influx, beginning in November.

The structure is the first green class A building in Burlington and one of few in the Boston suburban office market. When completed, the project will be Silver LEED-certified. Some of the green amenities include daylight views for 100% of the occupied space, ultra-high-efficient fluorescent LED lighting and water-efficient plumbing to reduce up to 30% over standard office buildings.

Gutierrez gains a coup in the signing of One Communications, not only by grabbing a large tenant, but by allowing it to alter its approach in leasing other tenants. “Signing such a large tenant, this allows us to sub-divide the floors for smaller tenants,” Kerrigan enumerates, “which we really couldn’t do before. Before, we were really hunting for larger tenants.” Originally, he continues, the developer was looking for full-floor tenants willing to take 30,000 sf to more than 50,000 sf. Now that the top two floors are secured, Kerrigan tells GlobeSt.com, the owner is now looking for tenants as small as 15,000 sf.

There are no other tenants on the docket, as yet, but it has a close proximity to Route 128 and is attractive in Boston’s suburban office submarket. “Realize, a lot of the buildings in suburban Boston were built in the mid-’80s,” Kerrigan explains. “They are a quarter of a century old. Typically you have the original HVAC, original glass system, original roof.” The age begins to show on these buildings, he observes, and money needs to be put into them, as opposed to 5 Wall St. “If you can get a brand new building from a known builder for the same-price or less, that’s pretty compelling.”

The Boston suburban office market has seen a recent push for consolidation, with Arbor Network merging its Merrick, NH-office with its Lexington, MA-office into a new Chelmsford, MA-office. IBM is pulling its numerous Massachusetts-based offices and placing them all at 550 King St. in Littleton, MA. Kerrigan explains a few advantages to merging offices, for example, with a larger requirement, a tenant can negotiate more favorable terms, as well as a communicational incentive to bring splintered offices under one roof. “There’s no question, it’s economies of scale,” he says. “Instead of having four receptionists all over the suburban market, you have one.”

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