The Downtown Boston office market is performing better than other major cities, notably NYC and L.A., as the challenges of the economy continue to effect the demand for office space locally and nationally. Ultimately, Boston's real estate market is incredibly resilient and the wide range of business sectors that operate within the city provide an excellent base over a longer time horizon for recovery. To gain insight and perspective, Hunneman sat down with our Executive Vice President, Peter Bean.
Q: What is your background like: your previous work experience, coverage areas, and why you came to Hunneman in 2020?
A: I’ve been in commercial real estate for 23 years and focus on Landlord and Tenant representation in Greater Boston. Hunneman has been my home now for three years, and I moved here for the corporate culture and the professionalism and experience of each team throughout our service lines.
Q: What motivates you as a seasoned CRE professional?
A: My three beautiful children first and foremost. On a professional level, every day presents new challenges and new solutions. This career is in constant flux, keeping it interesting and challenging at the same time.
Q: What is your greatest career accomplishment?
A: Successfully navigating the rapid growth requirements of my client Criteo, a tech company, from 4,000 RSF to 50,000 RSF over two years, with three relocations. Despite the challenge of Criteo's heavy infrastructure and density requirements, while maintaining an interactive culture catering to a young workforce, in hyper-growth mode, we met the challenge and it was very rewarding.
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Q: What are some of your most notable success stories on the tenant representation side?
A: Criteo: 72,000 RSF
Polartech Fleece: 120,000 RSF
Accumentrics: 100,000 RSF
Beam Interactive: 17,000 RSF
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Q: Can you speak to some of your recent success stories on the Landlord representation side?
A: 20 Park Plaza, Boston has over 25,000 RSF of commitments in 2023. Ownership was ahead of the curve on rental rate expectations and clearly defined expectations, giving me the ability to execute. Also, at 142 Berkeley Street, we have achieved 80% occupancy over the past 3 years.
Q: How do you feel about the current state of the commercial real estate market?
A: The market is still a bit unsettled as we move beyond Covid. The hybrid work environment and economic uncertainty is challenging at this time.
Q: Where do you see the commercial real estate market in the future?
A: The impending recession may be a benefit to landlords and the overall urban economy as job preservation will trump employee remote work demands—best to been seen in the office.
Q: What is the biggest change you have seen in the brokerage world?
A: Consolidation of brokerage firms. Many small and medium size firms have been acquired in the past four years. Hunneman stands alone as the largest, independently owned, full-service commercial real estate firm in Greater Boston.
Q: Which specific location or sector is best poised for rebound?
A: The Class B market in the Financial District needs to be reimagined. Many of these office buildings could use a refresh— a change in use, away from office and redevelopment, would help to address both vacancy and image.
Q: How do you feel about the transformation of the Seaport?
A: The Seaport's development was and is long overdue and integral in keeping Boston competitive in attracting world-class tenants and talent.
Q: What are your thoughts on International Place’s $100 million transformative reinvestment in a bid to attract new tenants?
A: It is definitely a bold move by The Chiofaro Company. The development has always garnered premium rents and will need the amenities to compete with all the amenity packages out there, for example with One Lincoln and Hines’ South Station development.
Q: Any thoughts on what will happen with 400 Atlantic Ave with the departure of Goulston & Storrs Law Firm?
A: This building is squarely in the ‘reimagine’ category. A hotel with public access to the harbor would be a huge amenity.
Q: Any thoughts on the residential conversion talk regarding under-utilized or vacant Class B/C buildings?
A: Conversion is necessary, but presently not economically viable for developers. The numbers don’t work unless government tax credits come into play.
Q: Do you think the amount of sublease space coming online in the Downtown market will stabilize or continue to increase?
A: Subleasing has a limited shelf life, the shorter the term, the less value. It is most likely to stabilize and companies should have already made the decision to put their space on the market.
For more information please contact:
Peter Bean, Executive Vice President, Principal | pbean@hunnemanre.com