As it finalizes cost estimates for 121 Seaport in Boston, developer Skanska USA is positioning the 425,000-square-foot tower as a rival to Cambridge’s Kendall Square among tech companies looking for build-to-suit sites.
Shawn Hurley, executive vice president of Skanska USA Development, said 121 Seaport has a shot at attracting the neighborhood’s next big lab tenant. Vertex Pharmaceuticals was the first major life science company to commit to the South Boston waterfront, moving from Cambridge to a 1.1-million-square-foot headquarters on the Fan Pier in January 2014.
"These tenants have a substantial office component, so 121 Seaport can play either role," Hurley said Thursday. "It can go lab, it can go office. But there are certainly tenants in Cambridge that are looking at 121 Seaport."
Six major users, including Akamai Technologies, Microsoft and Sanofi, are in the market for more than 1.7 million square feet of space in Cambridge. Developers HYM Investments, Alexandria Real Estate Equities and Leggat McCall Properties have permits in hand for more than 2.7 million square feet of office and lab space in East Cambridge. The cluster effect in the tech sector has driven the preference for companies to locate near each other and incubators near MIT.
By contrast, the bulk of recent leasing in the Seaport has been driven by traditional office users such as law firms, investment companies and consulting.
Average asking rents for class A office space in East Cambridge were $60.12 per square foot at year’s end, according to JLL’s office insight report. The Seaport offered a slight discount at $57.78.
Hurley declined to say how much of a leasing commitment Skanska needs to break ground on the site, which it acquired from Seaport Square master developer Boston Global Investors and Morgan Stanley in December 2013 for $36.1 million. Skanska is finalizing cost estimates.
"Obviously the construction market is really busy and we want to get pricing before we move forward," he said.
121 Seaport is one of three development sites owned by Skanska USA in the Seaport. The Swedish development company expects to complete its 101 Seaport tower in October. PwC has leased 75 percent of the 440,000-square-foot building. Skanska has a "handshake agreement" with a tenant for an additional 25,000-square-foot lease with occupancy beginning in December, Hurley said. The building also will contain 20,000 square feet of ground-floor retail space.
Skanska’s third project, Watermark Seaport, will add to the Seaport’s growing residential population with 350 apartments. Built at the corner of Seaport Boulevard and Boston Wharf Road, it will include "innovation" units including some smaller than 400 square feet in an eight-story low-rise building, and contemporary style apartments in a 17-story tower. The first phase of move-ins is expected in January. Skanska is partnering with Twining Properties of New York on the residential development.
Hurley said prices haven’t been set, but the complex will have direct competition from the 100 Pier 4 apartment tower that opens in March on Northern Avenue. Prices at Pier 4 range from $2,500 studios to $8,600 three-bedroom units.
