CIRB News & Transactions
News 09/02/2008 : THE RENAISSANCE OF THE BOSTON SEAPORT With over 30 million square feet of proposed mixed-use development* either open, under construction, or in the planning phases, the redevelopment of the Boston Seaport area is one of the largest urban developments in the country and the area is well on its way to becoming a vibrant 24-hour neighborhood.
The new $800 million Convention Center opened in 2004 and will attract 750,000 conventioneers annually. Thousands of new office workers and residents are adding to the mix in the Waterfront District. Manulife Financial’s 500,000 sq ft U.S. Headquarters (now merged with John Hancock) building is next to the new Marriott Renaissance Hotel. The 1 million sq ft Seaport East and West Office Towers are nearly 100% leased with Fidelity’s World Headquarters as the anchor tenant. The 790 room Westin Hotel (plans are already in place for a 500 room expansion) has joined the Seaport Hotel and the new Marriott Renaissance to bring the total number of hotel rooms in the immediate area to over 1800.
New restaurant activity in the Seaport is picking up given the success of Legal Test Kitchen and Morton’s. PF Chang’s is reviewing opportunities for their third City of Boston location as is Flemings for their second City location. Legal Sea Foods has recently signed a lease for 22,000 SF on 3 levels at Harborside Wharf which will likely become Boston’s “must-visit” restaurant for tourists and residents alike. ZED 451 will be opening their first Northeast location as a co-tenant at that development.
Market rents for existing inventory in the Seaport district have averaged in the $35- $40/sf NNN range with Tenant Allowance available on a per deal basis. Leases for space in new developments that are either proposed or now under construction is starting at $60/sf NNN with limited Tenant Allowance.
John Dennis and Kevin Hartigan of Corporate Realty Advisors, are the local experts on new restaurant development in Boston’s Seaport. We can be reached at: 781.396.5400 or please visit our website at www.cra-boston.com.
* Source: Boston Redevelopment Authority (BRA)
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