Boston, MA Office Overview
Notable Boston commercial real estate neighborhoods include the Back Bay, North End Boston, and South Boston office space submarkets. With a metropolitan population of nearly 2 million people, Boston is the largest city in New England and is seeing major demand for office space throughout the entire region.
As of mid-2017, the Greater Boston office market encompasses over 74 million square feet of existing office space in properties larger than 50,000 square feet. Boston's reputation as the intellectual and medical center of New England continues to create demand for white collar office employment in the education, bio-technology, education, and financial services sectors and also has a powerful impact on the Boston commercial real estate market.
Boston, MA Office Inventory Description
Boston ranks among the top 30 most economically powerful cities in the world and is home not only to a diverse mix of white collar businesses but is also considered to be highly innovative due in no small part to the presence of world-class universities that attract high-technology companies and venture capital.
With a gross metropolitan product of nearly $177 billion annually, there is powerful demand for white collar office employment in Boston. Nearly 75% of the office space in Boston is Class A or A+, while Class B inventory contributes an additional 25% of product to the market.
The Downtown - Financial District office submarket in Boston is home to some of the most prestigious Class A office buildings in the U.S. Global investors are attracted to world-class office properties like 50 Post Office Square, Two International Place, and 101 Federal Street.
Boston, MA Commercial Inventory Breakdown
Total: 102,321,774 SF
By square footage range:
- 50k to 100k SF: 7,453,129 SF / 7.28% of total office
- 100k to 500k SF: 40,795,801 SF / 39.87% of total office
- 500k to 1M SF: 33,356,608 SF / 32.6% of total office
- > 1M SF: 20,716,236 SF / 20.25% of total office
- Class A+: 20,721,549 SF / 20.25% of total office
- Class A: 42,948,985 SF / 41.97% of total office
- Class B: 21,748,392 SF / 21.25% of total office
- Class C: 75,800 SF / 0.07% of total office
Boston, MA Green Office Space
Of the Top 30 Green Office Markets in the U.S., Boston ranks 14 th for energy-efficient office buildings. While nearly 4% of the office buildings larger than 50,000 square feet are LEED certified, just under 9% rank as Energy Star Certified and nearly 11% are recognized as green buildings.
An outstanding example of a LEED-certified office building in Boston is 100 Cambridge Street. Built in 1965, this nearly 750,000-square- foot office building has attained LEED Gold certification.
It's not just newly-built office buildings that can be energy efficient. Built in 1873, the One Winthrop Square office building in Boston's Downtown Financial District is recognized as a LEED certified green office building. As tenants, national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to grow in Boston.
The 2017 National Green Building Adoption Index reviewed commercial office properties in the top 30 U.S. markets. Including EPA Energy Star-labeled buildings, the volume of green certification has increased from less than 5% in 2005 to 38% as of mid-2017. Boston has placed 14th on this survey.
Boston, MA's Top Office-Using Sectors
Finance, education, bio-technology and high-technology all contribute significantly to the economy in Boston and drive demand for white collar employment in the metropolitan area. The Route 128 Corridor and the Greater Boston area continue to attract large amounts of venture capital investment.
- Finance – The commercial real estate market in Boston sees significant demand for white collar office space from banking and financial services companies such as Fidelity Investments, Bain Capital, and State Street Corporation.
- Education – Known as the intellectual capital of New England, institutions of higher education in Boston include Harvard, the Massachusetts Institute of Technology, and Tufts.
- Bio-Technology & High-Technology – Abbott Laboratories, Advanced Cell Technology, Boston Scientific, and the Intel Corporation help drive the demand for Class A office property in the Boston metropolitan area.
- Corporate Offices – The demand for white collar Class A office space in Boston also comes from countless companies that employ thousands of people, including Hewlett-Packard, Novartis, Philips Electronics, and Vertex Pharmaceuticals.
- Total Population669,158
- Male Population(48.1 %) 321,703
- Female Population(51.9 %) 347,455
- Median Age32.00
- Average Household Income$95,114
- Median Household Income$62,021
- Median Income Under 25$29,856
- Median Income 25-44$78,993
- Median Income 45-64$67,253
- Median Income Over 65$29,276
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