CPN - December 2008 - (Page 14)

MARKET INTELLIGENCE BOSTON MARKET PROFILE The Right Recipe Tenant Mix Slows Recession’s Impact on Boston By Paul Rosta A little providence always comes in handy during hard times, and so far, Irish luck seems to be benefiting the Boston office market. The financial firms that occupy 12 percent of the city’s office space skew toward wealth and mutual fund management rather than investment banking, which has run into a capital wall. Two other Boston mainstays, education and health care, will probably avoid major job cuts, and some players in those categories may even expand. “Boston will weather the storm much better than other cities,” said Stephen Brodsky, senior vice president & head of Grubb & Ellis Co.’s Boston regional office. Indeed, at the end of the third quarter, Boston’s 7 percent office vacancy rate ranked as the lowest among major U.S. cities tracked by Cushman & Wakefield Inc. And companies are still inking the occasional blockbuster lease, such as Bank of America Corp.’s summer deal for 196,000 square feet in 225 Franklin St. Additionally, State Street Corp. is hunting for 100,000 to 200,000 square feet. The real feather in Boston’s cap, however, is the boost from emerging firms that lease smaller spaces, around 20,000 square feet. These tenants are less likely to put sublease space on the market in an economic downturn, observed Rick Cleveland,director of research for Cushman & Wakefield’s local office. In fact, vacancies Big-ticket deals are still going down in Boston, including Munichbased GLL Real Estate Partners GmbH’s $167 million purchase of the 302,143-square-foot 200 State St. office building (above, top center) from Broadway Partners and Bank of America Corp.’s lease of 196,000 square feet in 225 Franklin St. (at left). Free, Is the Sky Falling on Commercial & On-Demand Multi-Housing Property Developers? Get an In-Depth Look at the Federal Bailout Plan Webcast & How It Impacts Your Business The U.S. financial market is enduring one of the worst crises in its history. The investment banking model as we know it is effectively gone, and many commercial banks are spiraling downward, as well. Join Commercial Property News, Multi-Housing News and Contract just weeks after the election for this live, on-demand Web seminar and hear from leading economists how the current financial bailout strategy will impact your business. Attend this online-only event, and learn how to protect your investments and navigate through this challenging environment. Presented by Presenting Economists: Sponsored by Sam Chandan Ph.D. Chief Economist, Reis Inc. Jon Southard Richard Green Director of the USC Lusk Principal Director of Forecasting, CBRE Torto Wheaton Research Center for Real Estate To register for this FREE Webcast, go to www.cpnonline.com/economicwebcast 14 Commercial Property News • December 2008 • www.cpnonline.com http://www.cpnonline.com/economicwebcast http://www.cpnonline.com/economicwebcast http://www.cpnonline.com

Table of Contents for the Digital Edition of CPN - December 2008

CPN - December 2008
Contents
Starting Line
Buzzworthy
Retail
Data/Analysis
Conferences
Boston Market Profile
Finance
International
Property Management
Marketplace

CPN - December 2008