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First, Lego Group. Next up: Hasbro?
Massachusetts is in the running to attract the headquarters of another well-known consumer brand from a neighboring state with the potential relocation of toy and game maker Hasbro from Rhode Island.
Hasbro executives have toured downtown office buildings in recent weeks in their search for up to 250,000 square feet for a new headquarters, the Boston Business Journal reported.
In a statement, a Hasbro spokesperson told Banker & Tradesman the company is “exploring options for our global headquarters to make sure it is a space that can best serve our employees, partners, and business needs for years to come.”
The potential move would be a significant boost to the beleaguered Boston office market because it would represent pure growth from a tenant outside the market.
Since COVID, many of the largest leases have been signed by existing Boston companies relocating or consolidating space as their leases expire. The Greater Boston office market had a 25.4-percent availability rate in the second quarter, brokerage Newmark reported. In the city of Boston, office vacancies comprise 18.9 percent of the 76 million-square-foot market, according to a report last week by brokerage Hunneman.
Hasbro owns its current 312,784-square-foot headquarters at 1027 Newport Ave. in Pawtucket. The company also leases offices at 15 LaSalle Square in Providence, but announced this summer it will relocate approximately 240 employees to the Pawtucket headquarters when the lease expires.
Hasbro’s relocation would follow Lego Group’s decision in 2023 to depart from its longtime Enfield, Connecticut headquarters for a new office tower in Boston’s Back Bay.
Many major office tenants in Boston have gravitated toward newer buildings following the pandemic, taking advantage of rising vacancies and flat rents to relocate to class A high-rises with trendy amenity packages. Cambridge-based CarGurus also is opening a new headquarters in late summer at Samuels & Associates’ 1001 Boylston St. tower, along with Lego Group.
Only one other major office development is nearing completion in Boston: Hines’ South Station tower, which also includes luxury condominiums, and has yet to announce any tenants for approximately 700,000 square feet of office space. The One Post Office Square tower also has been extensively upgraded with new outdoor terraces and amenities in a $300-million capital improvement project.
Hasbro also is considering suburban Boston locations, according to the BBJ report.
Rhode Island vowed to fight to retain Hasbro, the parent company of iconic brands ranging from Monopoly to Dungeons & Dragons, which has been attempting to stabilize its finances until the 2-year tenure of CEO Chris Cocks. Hasbro cut 15 percent of its global workforce in 2023.
Rhode Island Gov. Dan McKee issued a statement Monday that the city and local officials would “pursue all options” to keep Hasbro in Pawtucket.
