UBS, Boston Globe Hub Lease Signing Seen as ‘Imminent’

BOSTON—A landmark headquarters lease six months in the making is finally being put to bed, with market sources telling therealreporter.com that a holdup over signage has been resolved surrounding the Boston Globe’s negotiations at Exchange Place in Boston’s Central Business District. Breaking that impasse could have the tenant and landlord UBS signing off on a final deal this week.

“Sounds about right,” one informed observer says of the final matter being settled and paving the way for work to commence in time to enable the administrative and editorial staff to relocate this coming January from the publication’s longtime home in Dorchester on Morrissey Boulevard. As Real Reporter outlined in a Nov. 16th, 2015 story first revealing the newspaper’s then-nascent talks involving Exchange Place that ended a broader search, the resolution could potentially hasten action on the fate of the Globe’s legacy headquarters that has left winning bidder Dr. Gerald Chan in limbo after the well-known real estate investor and businessman won a bidding competition being orchestrated by Colliers International, the same firm advising Henry on the headquarters lease. Dr. Chan, as Real Reporter also previously unveiled, had agreed to pay upwards of $70 million for the facility that is visible from Interstate 93.

Nearly one month after the initial Real Reporter article regarding the lease discussions, Boston Globe officials acknowledged they do intend to fill the second and third levels of the blue-glass Exchange Place office tower that encompasses over 1.1 million sf of first-class space. Managed by Lincoln Property Co., the recently refurbished tower is being represented on leasing matters by Cushman & Wakefield’s downtown experts Glenn Verrette and John McHugh. Colliers International Chairman Thomas J. Hynes Jr. is leading the charge on the leasing matter on a team that also includes Kristin Blount.

In confirming the non-binding letter of intent last December, Boston Globe officials said they view the relocation from the publication’s home for over a half-century as “a homecoming” of sorts given the newspaper’s roots in the downtown prior to leaving for Dorchester in 1958. While only leasing about 6 percent of the tower and being in its most economical portion, reaction was largely uniform that the media group’s presence would be a plus for the winning landlord, and in the case of Exchange Place, it takes down two floors being vacated in early summer by law firm Goodwin Procter as the practice relocates to Boston’s Seaport District. “It worked out perfect,” one downtown veteran agrees. Gensler is providing interior design services for the Boston Globe fitout.

A call to C&W regarding the Boston Globe talks was not returned, but multiple sources support the notion a pact is at hand. “Imminent” is the timing used by one contact who also points to size and placement of the signage as “the final piece” that needed a resolution and claiming that “the lease is now out” for tenant review. If as expected the newspaper does commit to terms, any modifications will then be assessed by the landlord prior to their John Hancock. “Looks good,” says another CRE professional familiar with the negotiations who estimates its length will be in the range of 10 years.

Regarding the Boston Globe headquarters sale, parties spoken to have agreed Boston Globe owner John Henry is the side keeping that process on hold while Dr. Chan has taken a patient approach in response. How long before that begins to wear thin is uncertain, but speculation has arisen that the lease was taking precedence first and Morrissey Boulevard’s future would then come to the forefront. That theory could soon be tested should the lease deal indeed cross the finish line in the coming days.