The increase in development and building activity in Boston and Cambridge is an exciting sight. The abundance of construction cranes around the city serve as a constant reminder that our economy is bouncing back and that the city is poised for continued growth as we see multiple areas transform into vibrant places to live, work and play.
And we’re not the only ones who think so. Just recently, Moody’s Investors Service cited Boston as one of the strongest commercial real estate markets in the country, reaching pre-recession pricing levels. Real estate prices are currently approaching peak rates the market has not experienced since December 2007.
Investing in Greater Boston’s real estate market is a smart choice – multiple neighborhoods of the city are well positioned for dramatic transformation and opportunity, particularly Cambridge’s Kendall Square and Boston’s Seaport District, two areas we have chosen to invest in.
The Boston and Cambridge markets are particularly attractive as their growth presents opportunity for us to develop and build buildings for those that drive our innovation economy. These areas are loaded with intellectual capital from entrepreneurs and talented graduates from world-renowned colleges and universities and companies that are currently revolutionizing science, technology and healthcare. All of these factors help create a culture of invention and ambition that gives our future extreme promise.
Kendall Square is an area that has transcended beyond a hub for innovation and research to a vibrant neighborhood with 24/7 activities. We expect that our new project at 150 Second St., a $70 million LEED Gold pre-certified lab and office building, will contribute to the dramatic transformation while continuing to reflect the culture of Kendall, providing a place for Boston’s brightest to research and develop breakthrough advances.
Boston’s Seaport represents an area of tremendous opportunity as evidenced by the successful projects that have opened in the past few years. As one of the most dynamic submarkets in the country and located in the heart of Boston’s Innovation District, the Seaport’s investment in public infrastructure combined with recently placed private capital has caused a flurry of activity that will continue to attract businesses, foster growth and innovation, and draw residents to the Seaport District for years to come.
Our planned projects in the Seaport, including Watermark Seaport and our recently purchased Parcel L1 within the planned Seaport Square Master Plan, will allow us to make our mark delivering innovative apartment and office projects with unique retail options. Both developments will contribute to the Seaport’s changing streetscape and bring additional commerce to the area.
Boston’s Boom
In addition to our investment with commercial development projects, we are also contributing to the local economy with hundreds of construction jobs through various projects, including Novartis’ 795,000-square-foot campus expansion; Education First’s (EF) new 300,000-square-foot headquarters; a 90,000-square-foot addition and full renovation of Boston University’s existing 180,000-square-foot school of law; construction of the Fore River Bridge replacement; and various renovation projects for the Beth Israel Deaconess Medical Center (BIDMC), to name a few. Upon completion, these buildings will provide an environment to advance education, transportation, pharmaceutical research and healthcare in Boston through educating the next generation, as well as the discovery and development of new innovations and healthcare solutions.
Boston’s rejuvenation and transformation represents a new age of optimism for the city of Boston. As Mayor Thomas Menino stated in his recent 2013 state of the city address, Boston is making great strides, referencing the $1.6 billion worth of development projects, and 22 major projects putting thousands of construction workers back on the job, as a major contributor to Boston’s hopeful future.
Skanska is proud to be part of Boston’s continued growth. We’re looking forward to working on future development and building projects throughout the city, fueling our local economy and expanding our region’s offerings and possibilities.
Co-written by Shawn Hurley, executive vice president for Skanska USA Commercial Development’s Boston office and Paul Hewins, executive vice president for Skanska USA Building’s Boston office.
