Indeed, while the hyperbole flowed freely throughout the mid-morning event, it might be difficult to underestimate the significance of the ceremony, one marking the start of a 500,000-sf speculative office building that will kick off the commercial portion of Fan Pier's ambitious platform. The site does have one building open, with the Institute for Contemporary Art a beneficiary of the master-planned development's civic benefits package. Now, however, Fallon is moving ahead on such elements as 1.5 million sf of office space; a five-star, 175-room hotel; high-end retail and luxury condominiums that some observers predict will set new pricing records for the market.

Offering such an outlook was groundbreaking attendee David Begelfer, executive director of the Naiop Massachusetts chapter. The views of Boston Harbor and mix of amenities to be provided throughout the complex will ensure such an outcome, Begelfer told GlobeSt.com, "It is a triple-A location," he said. "I think they are going to do extremely well on that." Ditto for the office building, added Begelfer, who supports Fallon's decision to move forward on a speculative basis. "Once people see the steel going up, they know its real, and they will react," said Begelfer. Leasing agent Steven Lynch of CB Richard Ellis agreed with that assessment, and said the long-held mindset of Boston tenants fits into that approach.

"Boston is still very much a 'show-me' kind of town," said Lynch. "They are really accustomed to having a project under construction before they commit." Fallon, who through past ventures such as the nearby Park Lane Condominiums and Boston Westin Hotel has proven he can meet the "show-me" challenge, responded accordingly with the office building, one which is slated for completion in the third quarter of 2009. Lynch, who is handling the leasing assignment with CBRE/New England president Andrew Hoar, would not discuss rental projections, but observers have been placing it in the $70-per-sf range. Industry icon William McCall Jr., also in attendance yesterday, told GlobeSt.com that he believes the rent level seems "reasonable," especially given the time frame for delivery. McCall was among those lauding Fallon for moving the plan along, and said he believes the location could prove popular.