HIGH PROFILE DEALS WITH MORE TO COME
As the calendar year turned and some speculated a strong conclusion to 2017 marked by major relocation announcements from Rapid7, PTC and Alexion Pharmaceuticals that would carry the headlines into early 2018, Amazon, Mass Mutual and Oath felt differently. The latter have all recently been negotiating leases for up to a combined 1.1 million square feet of largely new growth. Beyond this pending new growth, the demand pipeline remains full with the likes of Amazon, Wayfair, Apple and all the co-working giants currently shopping for new space.
Although not a new trend to the market, the rise of co-working has become the market disruptor that some landlords have long feared. At the top of most tenants wish lists are creative functionality and flexibility in terms of space use and financial obligations. Large corporate user like Amazon, Microsoft, PayPal and Bank of America have all taken notice and taken large swaths of co-working space across the country. Over the past 12 months, the number of corporate users has doubled and their footprint has grown fivefold. Not surprisingly, WeWork recently announced it will be opening new locations in the Back Bay and the Financial District.
The regional demographics and economy have remained strong which supported and promoted Boston’s recent expansion. Firmly rooted in education, technology and life sciences, Boston’s diverse economic base has submitted strong job growth through increased recruitment and skilled labor retention from the area’s leading universities and institutions. Looking forward, expect durable market conditions and a diversified economy to guide the region’s commercial real estate market to a strong performance over the next several years.