"The CityPoint message of urban convenience in a suburban setting really resonated in the market," says DTZ FHO Partners principal John Boyle, who represented all three tenants committing to the building, the others being Administaff--9,000 sf--and PRTM--35,000 sf. The office building is the inaugural phase of a $500-million mixed-use complex Boston Properties is building at the interchange of Route 128 and the Totten Pond Road/Winter Street exit, and Boyle says the planned amenities were key elements in the decisionmaking process for his clients.
DTZ FHO Partners principal Brian Hines concurs, and maintains the response to 77 CityPoint also reflects a desire for new construction. The vacancy rate for class A office space on Route 128 between Routes 2 and 9 is now just 11%, he says, even though Waltham has seen nearly two million sf of new construction under way since the start of 2007.
Expectations for 77 CityPoint were high from the outset, Hines says, but he agrees that the venture reached full occupancy faster than anyone had anticipated. "It speaks volumes about Boston Properties and what they are trying to do there, and I think it proves that they really have the right product," says Hines, who worked with the landlord's in-house team of David Provost and Jason Fivek to fill the space. DTZ FHO Partners broker Michael O'Leary was also instrumental in the negotiations at 77 CityPoint, while principal Joseph Fallon worked with Boyle on the Phase Forward lease.
Construction is far enough along that Administaff will be able to move in early next month. That firm inked a five-year deal, while PRTM has a 10-year pact. Financial terms were not provided, but sources say Phase Forward's lease is in the low $40-per-sf range. CEO and president Bob Weiler says the ability to remain in the Waltham market was important for Phase Forward, which will relocate later this year from Waltham Woods. "In addition," he says, "employees have given us very positive feedback about our choice to move into a LEED-certified green building."
Sustainability has become a key issue for tenants in recent months, but was not as mandatory when 77 CityPoint got under way. Boyle praises the developer for having the foresight to realize it would be of import, prompting the firm to secure a pre-certification for a Silver LEED certificate. "Boston Properties is really at the forefront of (green design), and they proved that here," says Boyle. The design includes abundant natural light, increased indoor air quality and a 30% reduction in water usage versus conventional standards. "Phase Forward made it very clear from our first meeting that providing their associates with a healthy, vibrant and exciting work environment was critical to their company's continued success," says Boston Properties president Doug Linde. About 350 Phase Forward employees will work at 77 CityPoint.
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