Boston ranks tops in the U.S. and seventh globally in investment intensity for office space, with the robust tech sector placing the Hub among an elite group of mid-sized job magnets.
The report by JLL research lists Boston among a group of “new world cities” with a strong tech presence, high quality of life and transparent business practices. The investment intensity index compares the volume of commercial real estate investment in a city over a 3-year period with its economic size.
London led the global top 20 in office investment intensity, followed by Oslo and Munich. Boston ranked ninth globally in direct commercial real estate volume from 2014-2016 and fifth in the U.S., after top-ranked New York and Los Angeles, Washington, D.C. and Chicago.
Foreign capital has driven many of Boston’s largest recent investment sales and developments. Chinese insurers are Ping An and China Life Insurance Group are partnering with New York-based developer Tishman Speyer on a $500 million development at Pier 4 on Northern Avenue including a 13-story office building and 100-unit condominium tower.
Chinese developer Landsea is a partner in the Pierce Boston luxury condo tower being built in the Fenway. Investors from Beijing and Hong Kong partnered with California developer Cottonwood Group on acquisition of the M block parcels in the Seaport where an $800 million residential and retail complex recently broke ground. And German real estate fund Union Investment Real Estate paid $452 million last year to buy the 101 Seaport office tower anchored by PwC’s regional headquarters and $150 million for the new Converse headquarters at Lovejoy Wharf.
“In the past 10 years Boston has become a top destination for global investment due in part to its unique blend of a young and talented workforce, resources and academic and inspiring incubator community that drives innovation,” JLL New England Research Manager Lisa Strope said in a statement. “With some uncertainty in global markets in 2017, Boston will continue to attract foreign investment because of our solid economic foundation balanced by a diverse number of growing industries.”
