Office construction is alive and well in and around Boston,
caused in part by large investments made by biotechnology firms
expanding into the Boston area. The last quarter of 2011 saw
dramatic increases in comparison to the first three quarters of the
year.
Interestingly enough, the majority of new construction projects
due to complete within the next several months has already been
committed to firms to have tenancy upon completion. 2008 showed the
highest amount of square footage of construction, although the
economic climate was in a much different state then and around
2007. Moreover, it was in the third quarter of 2007 where the
construction, then underway, only had 6% of the space committed to
occupancy by companies.
John Miller, Senior Vice President of Lincoln Property Co., told
how the results that even rents in the past year have jumped from
where they were in 2010. Miller relayed that the typical price per
square foot for renting in a first-rate, high-rise establishment
went from $43.67 in 2010 all the way to $45.56 in 2011.
Many companies are rushing into our market and are making heavy
investments, most of these often are found in the Innovation District
where development is moving at a serious pace. Here, one firm worth
mentioning as an example is the $800 million monster that will
house Vertex Pharmaceuticals Inc. Other areas with some notable
building plans are Biogen Indecs investment in Kendall
Square, Liberty Mutual Insurance Co.s tower in
Bostons Back Bay
neighborhood, or finally even Swiss Pharmaceutical
Novartis AG with its complex by Cambridges Central
Square. There is great promise in the future of Boston
as our city only continues to grow and prosper.
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