Frenzy of Leasing Surge Fills 77 No. Washington St. Via Avison Young

BOSTON — Five firms taking down nearly 30,000 sf at 77 North Washington St. are among a vanishing breed—tenants able to find space in the super-tight North Station business district. According to real estate brokerage firm Avison Young, a frenzy of leasing there has compacted vacancy for 2.55 million sf to a scant 1.9 percent, lowest among any submarket in metropolitan Boston and a fraction of the 10.3 percent average in the 65.5 million sf urban supply tracked by AY’s research team.

“As an active member and former president and chair of the board of the Downtown North Association, it is exciting to see the development taking place in this neighborhood,” Avison Young principal Karyn McFarland says in a press release announcing the agreements at 77 North Washington St. McFarland and Vice President Matthew Twombly are exclusive agents for the nine-story, 120,000 sf office and retail building which saw deals signed in both areas to account for the 29,575 sf that accomplished the leasing milestone for their client, Finch Group (dba 77 NW LLC).

Newcomers found it challenging to make their way into 77 North Washington St.’s tenant roster, with most of the recent transactions involving existing denizens. The exception on the office front is Audley Travel US Inc., a company relocating operations from Marblehead into 6,950 sf. Another fresh face on the block is financial advisory firm Edward Jones, which leased the remaining 1,950 sf of ground-floor retail space. Office renewals were highlighted by Advantage Sales & Marketing LLC, an established agency which completed its second extension at 77 North Washington St. where the firm occupies 13,900 sf.

In addition to ASM, creative agency Cercone Brown and Company LLC reupped on a 4,025-sf suite and technology startup Talko Inc. renewed for 2,750 sf.
CBRE/NE and CoreStrategy Corp. advised ASM in its negotiations. Financial terms of the five agreements were not divulged, although AY research pegs the average asking rate for Class B office buildings in North Station’s upper echelon at $35.50 per sf.

The AY market report compiled by research chief Brendan Carroll shows 153,000 sf of positive net absorption for North Station during the prior 12 months.
McFarland has been active there for decades, having watched it ebb and flow through various economic cycles, but in the release, she predicts a series of
dynamics are helping North Station stand out from other options. Recent improvements including depression of the Central Artery are credited for bringing a wave of new construction and expanding residential component to the area, feeding into a diverse constitution McFarland says appeals to new age tenants. “Demand continues to increase as companies recognize the growing number of amenities and transportation options available,” observes McFarland, with North Station providing a range of public transit nodes and one of the city’s largest concentrations of off-street parking.

AY also credits the sponsorship and physical constitution of historic 77 North Washington St. for continuing to outperform competitors, citing on the latter
aspect interior elements including terra cotta ceilings, exposed brick and abundant natural light among the attractions. That notion is shared by Finch Group
principal Debbie Batemen. Besides a convenient location, “occupants really appreciate the building’s unique aesthetics,” Bateman conveys in the release, adding, “we are also very pleased to work with Avison Young to attract and retain such a high-quality tenant base.”

Headquartered in Canada, AY touts itself as the world’s fastest growing CRE services firm, an operation spread across 62 offices providing advisory, financing, investment sales, leasing and management expertise to the industrial, multifamily, office and retail markets. The Toronto firm founded in 1978 comprises more than 1,700 real estate professionals led by principals who own and operate the company.