Seaport District Office Space Market – What to Expect
Finding suitable office space anywhere in Boston can feel like an uphill battle. Even in the wake of the Covid-19 pandemic, the city’s office space market has remained incredibly robust in general, and that’s truer still in the Seaport District. Currently the fastest-growing office submarket in the city, the Seaport has seen its population of tech startups, biotech firms and countless other organizations skyrocket over the last decade. If you need to lease offices in the Seaport, Boston City Properties is here to help.
A New Lease on Life for the Seaport
With its location on the waterfront in South Boston, the Seaport District served as the city’s primary shipping area for much of its history. Indeed, through the 1800s, massive warehouses along the waterfront were dedicated to the shipping trades. As the shipping industry declined, the 1900s saw the neighborhood fall somewhat into disuse, becoming dominated by empty parking lots and abandoned warehouses.
The Big Dig was the turning point for the Seaport. Upon its completion in 2006, various firms started showing renewed interest in the area. Under Mayor Menino, the spotlight was thrust onto the Seaport, as he encouraged its new life as an Innovation District.
The Mayor’s efforts paid off. Today, the Seaport is the fastest-growing office submarket in Boston. Initially, it primarily attracted tech companies and startups. More recently, it’s become the latest hotbed of life science activity, with firms clamoring for premium office and lab space throughout the neighborhood.
By the Numbers
At the end of the third quarter of 2021, the Seaport boasted 68 office buildings spanning more than 12.3 million square feet of space. There were 14 Class A buildings offering around 6.1 million square feet and 54 Class B and Class C buildings offering roughly 6.2 million square feet. The office vacancy rate for the neighborhood at the end of that quarter stood at just 10.4%. Overall, asking rents averaged around $62.69 per square foot. Class A space fetches just under $75 per square foot, and Class B and Class C space leases for an average of $58.37 per square foot.
Perennial High Demand
Since its latest rise to prominence began, the Seaport has experienced unprecedented demand for prime office space. Across the city, demand for upwards of 3.7 million square feet of office space continued across the second and third quarters of 2021. Bucking predictions, the Seaport didn’t see any significant dip in asking rents even in the midst of the pandemic.
Many of the old warehouses in the Seaport were converted into trendy loft-style offices and quickly snapped up by tech companies and other startups. More recently, however, demand for life science space has reached a fever pitch across Greater Boston – and many firms are setting their sights on the Seaport. As a result, when seeking office space in this neighborhood, you’ll also be competing with firms that want office/lab space. Many offices have even been converted into lab space, which could reduce availability and cause rents to increase even more over time.
Construction Activity Forges On
Construction activity has been on fire across the Seaport for several years, and the trend isn’t likely to die down anytime soon. If anything, construction activity in the neighborhood has increased since the pandemic. During the third quarter of 2021, construction began on the 630,000-square-foot Amazon facility at One Boston Wharf Road. Before the end of the year, construction should begin on 10 World Trade Center, a 600,000-square-foot building offering a combination of office and lab space. Across the city, approximately 5.6 million square feet of offices were under construction at the end of the third quarter of 2021 – and 50% of it was pre-leased.
Class A Availability Increasing
Because the Seaport had so many existing older structures, much of its office space fell into the Class B and C range for some time. Thanks to all of the new construction activity and, of course, high demand, Class A space is quickly becoming more prevalent and now makes up roughly half of what is available. Given the white-hot demand for office/lab space, which isn’t expected to abate any time soon, it’s safe to say that Class A office availability should increase in the Seaport over the next few years. Much of it will be snapped up quickly, though, which is why it’s crucial to connect with Boston City Properties when looking for such space in the Seaport.
Benefits of Leasing Commercial Space in the Seaport
Many things have been attracting firms across several industries to the Seaport for some time. The clustering effect of all of the new life science development in the area is likely to continue, so firms in that realm are wise to look to the Seaport for offices.
Some of the top benefits of leasing office space in this burgeoning neighborhood include:
- Easy Access to Public Transportation – The Seaport is incredibly well-connected in terms of public transportation, making it a natural choice for employers who want to attract top talent. The neighborhood is situated where the Red Line, which ferries 280,000 commuters per day, meets the Silver Line. The neighborhood is accessible via numerous buses, including 4, 7, 9, 11, 47, 448, 449 and 459. Additionally, commuter ferries operate out of the neighborhood, delivering workers to and from Rowes Wharf and Long Wharf.
- Proximity to Top Talent Pools – Employers who want the top talent in the region are wise to lease office space in the Seaport. The neighborhood has been attracting top tech companies for some time, and it’s quickly becoming another significant life-science cluster. With so many top universities, think tanks and incubators located nearby, it’s easy to see why employers have the pick of the litter in the Seaport.
- Plenty of Funding – Finally, thanks to the influx of top tech, biotech and life science firms, the Seaport now boasts the second-highest volume of venture capital funding in Greater Boston. This ensures ongoing new development across the neighborhood, generating new office space and other prime opportunities.
The Seaport District offers a diverse array of options for firms seeking prime commercial space. Popular areas include the Drydock area, Seaport Boulevard and Fort Point Channel. The latter is especially becoming a life science hotspot, but plenty of office buildings are going up too.
How Boston City Properties Can Help
If you need office space in the Seaport District, do yourself a favor and connect with the experts at Boston City Properties. With demand for optimal space stronger than ever, it’s crucial to have the proper assistance and tools at your disposal. We have experienced commercial real estate agents and brokers who specialize in office space in the Seaport District, and we can connect you to them whenever you’re ready. Our team also maintains a vast online database of searchable Boston commercial real estate listings, and we’ll give you free, immediate access right now when you sign up using the easy form. Thanks to our connections, we also have access to prime off-market opportunities and more, so contact us today and tell us how we can help!
Office Space
The Seaport area is an ideal location for businesses of all sizes. This is an area in Boston that is almost a mile south from the downtown area where the financial district is located. This is a port town that has been in the process of developing the kind of infrastructure that will make it competitive with businesses in the financial district. There are now a variety of stores, restaurants and night-life venues located along a stretch of coastline that is scenic and attracts visitors and tourists. Residents of this area can enjoy a thriving nightlife full of entertainment while remaining close enough to home to avoid a lengthy commute on the following work day. Offices located in the Seaport District can benefit from all of these local amenities.
This area is still developing, so it is worth tracking how the changes can affect the value of office properties in the area. This also makes it a prime location for investors or tenants interested in the value of office space in the Seaport District.
The nearby Highway 90 provides commuters and customers with easy access from the surrounding neighborhoods, which is an important consideration for people who are starting or growing their business in Seaport. Travelers, customers, visitors and employees can also access this area from the Boston Main Channel. The major access points provide an important amenity for anyone considering investing in property. As the public transportation system continues to develop, additional economic activity can be expected. South Boston and Fort Point are adjacent areas, and the real estate prices in these areas can affect the value of the property in the Seaport District. The average price of the cost of renting in Seaport is around 25 percent lower than the average price in Boston. Specific prices will reflect this overall trend, which is very helpful in assessing the market value of an office space in Seaport.
About Seaport District Office Space
Our listing of office spaces in Seaport is extensive. Visitors can quickly browse through many different listings to discover the perfect space and location for the needs of the specific business. For example, there are many properties available with scenic views of the city and waterfront locations. The variety of spaces available is remarkable, so you can expect a healthy selection of open desk, dedicated desk or team offices. Private offices are also available at a reasonable rate, and prime locations include Summer St. or Channel Center St. Other hot locations for offices in Seaport include the properties that are close to the thriving Marina Park business center. Commuters often travel between these locations to access services in Seaport, and this is an excellent strategy for business owners who need to remain accessible to customers while enjoying the perks of being in Seaport.
Consider the types of offices that are available in this area of Boston. When browsing through the available properties, you might notice that there are different classifications assigned to some units. This is a method used to communicate information about the space rapidly. For example, Class A properties are known for their high-end appeal and somewhat glamorous appearance. These properties are well-maintained, and they meet the highest standards for zoning. Class C properties are located in more affordable areas, so businesses who are just getting started often select these units until the business begins to grow. Our listings are just the first stop on your journey towards locating the perfect office. Browse through the listings to get a general idea of what properties seem to fit your needs. We have helpful customer service representatives who are available to show you each location in person. To get additional information, you can simply fill out a contact form at any time.
Benefits of Renting or Buying
Office spaces can be rented, leased or purchased. The perfect solution for any organization will depend on the specific requirements of the company. Many start-up companies prefer the rental option because it allows the organization to enjoy the benefits of operating from a professional work environment without stretching the existing budget. Many important amenities are provided by the building, and this can reduce the overhead costs that might otherwise be needed for parking, concierge service, office equipment, furniture, electricity and other necessary items. Renting can allow the business to grow while still providing the company with a sharp, polished public image. When the space is located inside a premiere business center, the amenities that come with the building and the location can be considerable. Renting an office in Seaport can allow businesses to enjoy access to a range of amenities and services that come with the rental payment.
The amenities available in these Boston office spaces allow individuals to engage in multi-purpose activities. This is an important consideration for people who are buying office space in Seaport. The amenities can make the investment much more attractive, even if the price is not ideal. This area is competitive, and many businesses choose a Seaport office location for the initial start-up phase. These spaces are ideal for companies that will be growing rapidly and will need to adjust once the balance sheet becomes profitable. This is when expansion is often considered. Once you are located in the Seaport District, your business will benefit from the area’s amenities once you start to bring in additional customers. The proximity to cultural and business centers will also help to increase the value of the property.
Consider the following amenities located in this area:
- The Boston Convention Center
- The Boston Children’s Museum
- Boston Harbor Walk
- The Institute of Contemporary Art
- Local Convention Center
Types of Options
The layout options are considerable, and they provide the kind of environment that encourages creativity and productivity. Enjoy the aesthetic that comes with industrial construction with high beams on the ceiling, cement flooring and impressive columns. Some of these office spaces provide you with a full view of the Fort Point Channel. The layout of these offices can accommodate corporate tenants, but many artists have used them as studio spaces as well. This is an ideal situation for photographers, graphic artists, designers and other creative tenants. These spaces are located close to many fine restaurants and other stores. These spaces are ideal for collaboration, and workers who are independent contractors often use them as a shared work space. You can quickly browse the listings to sort through the total square footage, price, amenities and location to find the perfect options for your specific needs.
Consider the importance of the location in Seaport. The proximity to the downtown Boston area and the financial district makes this a desirable area to conduct business. Creating and maintaining a positive business image is essential during the startup phase of the organization. The access to the Marina Park business center is just one of the options for business owners who understand the importance of the location. Consider the access points for potential customers when reviewing each property. Some of these office spaces have fast access to the local ferry service or train stations, for example. The Harborwalk draws a lot of traffic, and this can have an effect on the amount of business you attract. Clients will enjoy the professional appearance of the lobby as they enter the building. Reception services and conference halls complete the image in many of these spaces. You can enjoy the benefits of having access to the best amenities with amazing views of the city.
Local Real Estate Market
The rental market in Boston itself is robust, and this can be seen in the levels of absorption, or the amount of subleased spaces. The absorption rates also reflect the amount of office space available in terms of square footage. The sub-markets in the Boston area have had only positive levels of absorption during the third quarter of 2017, which demonstrates a robust market for renters. Market researchers are confident in the performance of Class A properties in the downtown area of Boston. However, reports also indicate that the financial district and the Seaport district are leading the market in terms of absorption. The conditions for the landlords in this market reflect the interests of the buyers of office spaces. However, tenants can also use these numbers to assess the relative value of the office space compared to similar spaces in Boston. The rental market itself grew 9.2 percentage points within a 12-month period of time, for example.
These market trends generally indicate favorable conditions for property owners in Seaport. This is useful information for seasoned real estate professionals. The data is also useful when comparing the performance of these office spaces to similar ones in the surrounding areas. Sub-markets were showing a general trend towards negative absorption rates in 2017, and this provides the perspective necessary to appreciate how remarkable it is that Seaport rated as one of the top performers. Suburban market trends offer a relative level of comparison to the office market in the areas around Boston. It is notable that the suburban absorption levels were generally flat over the same period of time. In addition to these abstract sets of data, it is also useful to look at the relative income of the people who live in Boston.
General Market Trends, Seaport
Disposable income is an important consideration for businesses who are considering Seaport as a location for a new office. Rental prices can help you to get a clear idea of the economic strength of the region as a whole. In the areas around Boston, you can do this by looking at the average price for apartments. For example, the average rental price for an apartment in Boston is around $2,800, and this reflects the basic budget of the consumer class most likely to patronize businesses in the area. Compare this number to the national average rental price, which is around $1,350. The neighborhoods that have residents who earn the most tend to live in the downtown area, the financial district, Back Bay and North End areas of Boston. The general trend lines show a steady increase in the prices for office spaces in Seaport. This is clearly a competitive sub-market, and the market reports list Seaport as a main competitor for new tenants.
Development in Seaport
This area of Boston has gained a lot of attention since becoming a competitive location for business owners who may have only previously considered a location in the famous Financial District. The development projects occurring in this area contribute to the sense of growth in the local economy. Many market researchers look at these developments as a sign of confidence in the market of a particular area. This can also give valuable information to investors when a purchase is being considered. The value of a property often rises when there is enough investment occurring in the local infrastructure. Long-term development projects are generally positive market indicators, which should be considered as important as the price or location of the property.
Public transportation services are making it easier for people to live in Seaport and commute to Boston. Currently, the average travel time for a commuter in Seaport is around 30 minutes. The Seaport District itself is convenient for commuters who will enjoy a short walk to the Rose Kennedy Greenway, where there are many refreshments available. This area is only 10 minutes from the local public transportation systems, which include trains, buses and subway services. Taxi service is also available, and many residents enjoy the infrastructure that allows biking to the local stores, shops and restaurants. Additional connections are planned to allow the Seaport District residents access to the various university systems. As more students and research professionals relocate to this area, there is a tangible effect on the economic condition of the area.
Local Real Estate News
Activities in the local area can affect the prices of office spaces in this area. Development plays a key role in the value of a property over time. When an area like Seaport is successful in attracting major corporations into the local economy, the real estate prices generally tend to rise. This makes Seaport an attractive location for investors and renters who wish to acquire a property before the expected increase in prices occurs. Major corporations that have announced development plans in Seaport include General Electric, Red Hat and Amazon. These companies have already leased out a considerable amount of office space, and this signals a positive direction of prices for buyers. In addition, economic growth is expected because of the announcement made by Worcester Polytechnic Institute. The company expects to expand operations into various areas of the Commonwealth of Massachusetts as a whole and the Seaport District in particular. This is an important development because of the proximity to other high-profile institutions, universities and industrial centers. Researchers and other professionals can be expected to locate into this area, and this allows the local economy to prosper.
Search Listings
Our listings are organized in a way that allows you to enjoy the benefits of searching through a large selection of properties in a short amount of time. Our professional site now allows you to sort these properties by various attributes. Use the filters to sort through these listings by price range, features, location and other specific tags. Enjoy the benefits of using our site to check for additional listings. The site is updated regularly, so you can always be confident that you have access to the best properties in Seaport. Enjoy the ability to quickly browse the listings based on location and accessibility. You can quickly find shared office spaces with various floor plans, or find the perfect Seaport office space based on the available amenities. Several developers in this area have been constructing ecologically sound buildings, and this is an ideal solution for business owners who want to advertise their commitment to sustainability.
Clients can expect to receive a quick response from a dedicated real estate professional after signing up on our site. We provide you with access to an expert professional who can promptly email you a list and answer any questions. These listings are updated on a regular basis, and this will provide you with the best resource available to locate a new property. The features of the building will help you to maximize profits, and the location enables you to advertise to local customers. Enjoy the proximity to public transportation systems, which drive traffic in your area. These listings are organized to make it fast and easy to find a great office. Use the filters to eliminate the properties that do not fit your requirements, and use the contact form to get updates and special offers. We can help you through every step of the process. Contact us at your earliest convenience to find the right property for your business in Seaport.