Few Control Back Bay, Financial District

BOSTON-Eight landlords control about 84% of the class A office tower market in the city’s Back Bay and Financial District, a confluence that one real estate professional says could push some lease rates to $60 per sf by year’s end.

Joe Sciolla, managing principal with Cresa Partners Boston office, tells GlobeSt.com that with such a small number of owners controlling two of the city’s key office markets, landlords could “attempt to wrest control away from tenants” who have for years enjoyed a tenants’ market for rented office space.

“There is a sense of urgency in the next couple of months,” says Sciolla, noting that increased space demands along with a 30% hike in the cost of building materials for tenant improvements in the last 24 months indicate that rents are trending upward.