Tishman Speyer has signed a 106,000-square-foot leasing agreement with the Commonwealth of Massachusetts through the Division of Capital Asset Management and Maintenance. The landlord had in-house representation.
For at least 10 years, six government agencies will occupy two full floors at One Federal Street, a more than 1.1 million-square-foot Boston tower. Move-ins are expected by early 2025.
The building’s new tenants will be the Central Administrative Executive Offices for the Office of Consumer Affairs and Business Regulation; Division of Banks; Department of Telecommunications and Cable; Division of Standards; Division of Licensing; and Division of Insurance. The agencies will relocate their offices from 1000 Washington St. and 501 Boylston St.
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Tishman Speyer acquired the 38-story asset in June 2006 for $514 million from Jamestown using funds from a $262 million loan, according to CommercialEdge information. In 2017, the property became subject to a $380 million note originated by TIAA.
A Class A building in Boston’s CBD
The Class A high-rise came online in 1976 and was completely renovated in 2011. The building has 15,000 square feet of first-floor retail and floorplates between 25,000 and 45,000 square feet.
Amenities at the LEED Gold-certified property include a fitness center, 10 passenger elevators and 90FS, a venue for private events that features an open-air terrace and rooftop garden, as well as access to ZO, Tishman’s global amenities network.
Greystar, Siemens, J.P. Morgan and Long Wharf Capital are some of the building’s tenants, CommercialEdge also shows. The building is located at 1 Federal St. in Boston’s central business district.
Boston’s thriving office sector
Benefitting from a strong life science subsector, Boston is one of the best-performing U.S. office markets. The metro posted the lowest vacancy rate among peer markets as of June, clocking in at 12.8 percent, a recent CommercialEdge office report shows. Additionally, the asking rates averaged $47.60 during the same month, well above the $31.67 national rent.
In May, a subsidiary of Sumitomo Heavy Industries signed a long-term lease for 142,224 square feet in Bedford, Mass. The company will relocate its headquarters to 35 Crosby Drive, one of W. P. Carey’s assets.
Earlier this year, Takeda Pharmaceutical Co. extended its leasing agreement for another 10 years at Alexandria Real Estate Equities Inc.’s 75/125 Binney St. The firm occupies 222,825 square feet at the life science property.