Led by the companys Chief Executive, Jeffrey Immelt, Boston Mayor Marty Walsh, and more, this new headquarter will add to the 14 million square feet of new space currently being developed throughout the city not counting the 40 million square feet of permitted projects that have yet to break ground. This groundbreaking adds to the developments that are in the works deeming this time as one of the biggest building booms in the history of the city according to the director of the Boston Planning & Development Agency.
While 80% of the new developments are made up of apartments and condominiums, the rest consists for the most part of office space. Major U.S firms and foreign investors that caught the development early have already begun to make major profits. One firm invested $535 million into an office project just refinanced in a deal valuing them at $705 million.
While some are worried that there is too much building happening at once, most are not. This growth is attributed to the increase in popularity of city living and the Big Dig which rerouted a major highway artery underground allowing new parks and walkable connections throughout the city. According to WSJ.com, in the past six years, Bostons population has added 50,000 people, or about 8%, more than all of the previous three decades. The regions 55 educational institutions make Boston an appealing location for a wide range of businesses.
The Wall Street Journal reports So far, rental and condo markets are holding up despite the thousands of new units being added, according to brokers. Last year, there were 3,708 sales of condos and single-family homes in core downtown Boston neighborhoods, up from 3,467 in 2015, according to a report by Joe Wolvek of Gibson Sothebys International Realty. The median sales price rose to $791,000 from $685,000, the report said.
Rents also are rising, according to developer Steve Samuels, who has developed hundreds of rentals and currently is building the 30-story Pierce Boston project in the Fenway Park neighborhood. High-end apartments in the neighborhood today go for the upper $2,000s to the mid-$3,000s in rent a month, up roughly 2.5% from a year ago, he said.
At the ultraluxury end of the market, the $900 million One Dalton development will include a Four Seasons hotel and 160 condos priced between $2.7 million and $40 million. Developer Richard Friedman agreed that such high-rise luxury-living is very new for Boston, where residents tend to be less flashy than other cities and are more likely to be driving a Prius than a Rolls-Royce.
Find more information on the Boston market here.
Source: Wall Street Journal