At 20, 99 Summer St. Gains Market Respect

BOSTON-The beginnings were more than a bit shaky, but 99 Summer St. is celebrating its 20th anniversary amidst a flurry of leasing activity. Under the stewardship of new owner Normandy Real Estate Partners, the 20-story, 272,000-sf office tower has cemented 31,000 sf of commitments with eight tenants, including a mix of renewals and fresh arrivals.

Normandy principal Raymond Trevisan, who oversees leasing for the firm, says the company was eager to score a downtown Boston office building as part of a multi-state portfolio deal with former owner Glenborough Realty Trust completed at year-end 2006. The reason, he says, was a belief the city was poised for a solid comeback. While the velocity 99 Summer St.’s leasing had been anticipated, Trevisan says the surprise has been the rental rate accretion. “The rents have moved higher than we thought they would by this point,” says Trevisan. “They have accelerated very quickly.”

While declining to provide specifics, achieved rates for the latest agreements were reportedly approaching $50 per sf, and CB Richard Ellis broker Christopher Cuddy says that level will soon be breached at 99 Summer St. At the same time, the building is also recognized for being a reasonable alternative, both Cuddy and Trevisan say, with several tenants mulling competing properties before opting to stay put. “They realized we were the best value,” says Trevisan.