"It's a real requirement," one industry source tells GlobeSt.com, as opposed to an exploratory review. A below-market sublease that had allowed Phase Forward to enjoy one of the region's premier suburban addresses since 2005 will expire in early 2009, and observers say the firm faces a doubling of its rent in order to stay in the estimated 120,000 sf previously occupied by BMC Software. Calls to Phase Forward officials and to FHO Partners principal John Boyle, said to be on the brokerage search team, were not returned by press deadline. Nonetheless, sources insist FHO has already begun the assignment.

According to leasing broker Alex Dauria of Jones Lang LaSalle, Waltham Woods "sets the high mark for rents" in suburban Boston thanks to high-end finishes and amenities, plus direct access and visibility from Route 128. Therefore, any transaction would likely exceed $40 per sf, but Dauria declined comment about the Phase Forward situation or whether ING anticipates being able to re-sign the firm at such a lofty rate. "They certainly seem to like the building," says Dauria, whose firm is also leasing agent for 890 St., the companion building in the park.

The breadth of Phase Forward's search is also unclear, but observers maintain that the firm has already forayed into the Bedford/Burlington market a few miles north of Waltham Woods. One contact told of a visit to the Sun Microsystems campus in Burlington that just traded for $212 million to Nordic Properties, but that could not be confirmed.