Tishman Speyer Signs 106K SF 10-year Lease with Commonwealth of MA at One Federal St.

Tishman Speyer has entered into a leasing agreement with the Commonwealth of Massachusetts, facilitated through the Division of Capital Asset Management and Maintenance. This deal involves a 106,000-square-foot space at One Federal Street in Boston, where six government agencies are set to occupy two full floors. The move is anticipated to be completed by early 2025.

Agencies Involved in the Relocation

The relocation will see the Central Administrative Executive Offices for several agencies, including the Office of Consumer Affairs and Business Regulation, Division of Banks, Department of Telecommunications and Cable, Division of Standards, Division of Licensing, and Division of Insurance, transferring their offices from their current locations at 1000 Washington St. and 501 Boylston St.

Details of One Federal Street

One Federal Street is a Class A office tower situated in Boston's central business district. Originally constructed in 1976 and completely renovated in 2011, the 38-story building offers floorplates ranging from 25,000 to 45,000 square feet and includes 15,000 square feet of retail space on the first floor. The property, which Tishman Speyer acquired in 2006 for $514 million, is known for its LEED Gold certification, and offers amenities such as a fitness center, 10 passenger elevators, and 90FS, a private event venue with an open-air terrace and rooftop garden.

Current Tenants and Property Financials

The building's tenants include prominent companies like Greystar, Siemens, J.P. Morgan, and Long Wharf Capital. Tishman Speyer financed its acquisition of the property with a $262 million loan and, in 2017, secured a $380 million note from TIAA.

Boston's Robust Office Market

Boston's office market is currently thriving, bolstered by a strong life sciences subsector. As of June, the city reported the lowest vacancy rate among major U.S. markets at 12.8 percent, with average asking rents significantly higher than the national average at $47.60 per square foot. This vibrant market has also seen other notable leasing activities, such as a long-term lease by a Sumitomo Heavy Industries subsidiary in Bedford, Mass., and Takeda Pharmaceutical Co.'s lease extension in Cambridge.