Six state agencies are taking advantage of the Boston office market downturn to upgrade to a new location at 1 Federal St., where they will occupy 106,000 square feet.
The 10-year lease spans two floors within the 38-story, 1.1 million-square-foot office tower owned by Tishman Speyer.
Some of the agencies, including the DIvision of Banks and Division of Insurance, are relocating from BioMed Realty’s 1000 Washington St. in South End, which received approval for a lab conversion in 2023. Their leases had been set to expire in spring 2025, according to data provided by the state Division of Capital Asset Management and Maintenance.
Others including the Office of Consumer Affairs are relocating from 501 Boylston St., owned by Nuveen.
DCAMM Commissioner Adam Baacke said last month the state planned to take advantage of the waning office market to upgrade office space for its agencies. More than 800,000 square feet of office space leased to state agencies expires by mid-2025, according to data provided by DCAMM and brokerage Hunneman.
“In the current, tenant-friendly commercial real estate market, DCAMM has identified a unique opportunity to obtain higher quality space than is typically available to state agencies,” Baacke said in a statement at the time.
The Downtown Boston Business Improvement District has advocated for a strong continued presence of state agencies for in-office work as an economic stimulus.
“One Federal’s efficient and sustainable design, robust amenities, and premier location create the ideal environment for these Commonwealth agencies to come together,” Tishman Speyer Managing Director Jessica Hughes said in a statement.
A dozen state agencies occupy 230,000 square feet at Newton-based Northland Investment Corp.’s 600 Washington St. building, where leases expire Dec. 31. Approximately 92,000 square feet of state office leases are expiring in spring 2025 at 1 Winter St., which is owned by The Druker Co.
The state recently renewed its lease for 286,308 square feet at 100 Cambridge St., which is owned by Intercontinental Real Estate Corp., through 2052.
