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Tech data company IDG will make the move from Metrowest to the Route 128 office market with the consolidation of its headquarters in Needham.
The 125,000-square-foot lease at Boston Properties’ 140 Kendrick St. is the largest suburban office lease of the year and fills the void left by PTC’s relocation to Boston’s Seaport District in spring 2019.
IDG, parent of trade publications such as Computerworld and InfoWorld, consolidated its real estate as lease expirations approach for its Framingham offices at 492 Old Connecticut Path and 3 and 5 Speen St. Approximately 600 employees are expected to relocate to the 208,500-square-foot Needham building, The Boston Globe reported.
IDG’s decision to remain in the suburbs comes at a time when the rent discount for suburban office properties in Greater Boston has never been higher, according to a report by Colliers International issued this week. The average blended class A and B rent on suburban lab space is nearly $30 per square foot less expensive than downtown addresses, so companies can afford to lease more space to accommodate social distancing during the COVID-19 pandemic.
“Suburban office buildings have room for companies and workers to spread out. The benching and hoteling trends that have swept urban centers across the globe and Boston as well are not as prevalent in the suburbs,” Colliers Managing Director Aaron Jodka wrote. “Designing an office with built-in social distancing and distributed workplaces is easier to do in the suburbs and also decentralizes staff, limiting the disease risk associated with a singular location.”
Boston-based architects Dyer Brown are designing the interior fitout and the move will begin in January, IDG spokeswoman Lynn Holmlund said.
PTC, previously based in Needham, leased 250,000 square feet in 2017 at the speculative 121 Seaport tower in Boston which was developed by Skanska and later acquired by Norges Bank Real Estate Management and American Realty Advisors for $455 million.
