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South End

South End, chic, vibrant and upscale, is nestled between Back Bay to the north, Chinatown to the southeast and Roxbury to the southwest. It is the largest intact concentration of Victorian row houses in the United States. The use of red brick, slate and stone gives a cohesiveness to the mix of styles. The subdivisions were inspired by the British pattern of forming residential blocks around a central park. The neighborhood is a well-integrated mix of residential, institutional and commercial properties. Columbus Avenue, Tremont Street, and Washington Street are the main economic hubs.

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South End is well-connect to the rest of Boston by the Boston T and commuter train. Interstate 93 forms the eastern boundary and I-90 the northern edge. It is the fifth most walkable neighborhood in the city.

South End Residential Investments

A growing population has put pressure on demand, with vacancy rates around 5 percent. Prices for sales and rentals in South End are higher than those for Boston as a whole. As of April 2015, median rent for a one-bedroom was $2,750, the seventh most expensive in the city. Rents in the area continued to be higher than those of Boston at the end of May 2015:

The median home value for South End was $690,800, an increase of 5.7 percent over the last one-year period. Zillow predicts a rise of 2.7 percent for the next year.

Choosing the Right South End Investment Property

Each of the four major sub-districts has its own dynamics. The redeveloped SoWa sub-district centers around renovated industrial buildings converted into lofts, apartments, condos and artist spaces. New entries to the market like the luxury apartments at 460 Harrison rent quickly.

The pre-sale condominium experts at Boston City Properties can help you find investment properties in South End like those currently offered in the Sepia and Sienna blocks of the Ink Block complex. The Ink Block will be ready for occupancy in late 2015. Our current database of pre-sale condos includes floorplans, amenities and neighborhood information.

Our expertise in sales, leasing and marketing covers all aspects of purchasing and managing residential investment property in South End and other Boston neighborhoods. Call 617-247-1933 to speak to one of our agents about pre-sale and other investment opportunities in the South End neighborhood.

Considered to be one of the most up-and-coming areas for both residents and businesses, this charismatic part of Boston is rife with opportunity for prospective retail, manufacturing, commercial, and industrial tenants alike. A favorable market points to prime conditions on all sides of the financing equation, as incoming tenants are finding that the space and price points they require are just right.

Historically, Boston has been a center for growth and consumer goods production. The economy of the city has been fueled in the past by several major sectors, which include professional services, medical services and extensive research in the life sciences area. These sectors still form the pillar of the economy, which is being joined by emerging businesses in the technology and ecommerce sectors. The rise of Amazon, for instance, has sparked the growth of similar companies that seek to provide similar services. The eagerness of these companies to provide those services, combined with the ongoing demand of the Boston area’s residents for such products, brings a high volume of opportunity and promise to existing and incoming businesses. Little new growth has been necessary in and around Boston in recent years, as companies have been finding tremendous opportunity in inhabiting existing well-located and spacious warehouse and industrial buildings that are outdated but well-located.

Despite the fact that available space is rapidly dwindling, which in turn is causing sale and rental prices to rise in and around the Boston area, good deals can still be found for those looking to rent and lease in the area. Market experts warn, however, that this trend is not likely to last long. Between 2016 and 2017 alone, rental rates have risen by about 10 percent. This trend is expected to continue for the next year or so, as rental rates across all categories of the commercial sector are projected to rise by approximately 20 percent or more. This means that the time is now for investors and commercial consumers to occupy space. Up to this point, there has been ample space available to meet business owners’ needs, but the type and volume of space is decreasing as more and more business owners rush to snatch up space in coveted areas. For the first time ever, sales and rentals in Class B buildings have outpaced sales and rentals in Class A buildings, which are buildings that are equipped with the latest and greatest features like state-of-the-art security systems, sprinkler systems and conveniences for patrons like private offsite parking garages and parking lots. Many Class A buildings are also energy efficient, and many have been fortified, as a result of either new construction or retroactive improvements, with coveted features like insulated windows, central air, and heating. Other potential building woes, like leaking pipes and faucets, are usually less common in Class A buildings than in older Class B and Class C buildings. Class A buildings are also usually found in better locations, although a number of warehouse and industrial buildings lie along major thoroughfares and are said to have premier locations.

In this part of Boston, investment potential is found in all types of commercial establishments, including retail, industrial, warehouse, office space, and flexible use. Vacancies are still relatively high, but they are continuing to move along a downward trend. Investors are jumping at the opportunity to finance development projects as entities are moving into Class B buildings for a lower price than Class A buildings, and they are putting time and money into turning those buildings into buildings that are suitable for their specific and preferred uses. An example of this use is with a former manufacturing building at Rivermoor Street in Boston. The building, which is well located, is being turned from a large outdated warehouse into a self-storage unit. As the technology, ecommerce, and flexible use markets continue to grow and develop, investors are turning more and more attention to financing projects for those types of clients in particular. Furthermore, there is a considerable amount of need for the products that those entities provide that has still not been filled by current companies in the Greater Boston area, which enhances the appeal for both investors and tenants to move into the area and set up shop.

Throughout 2017, demand in the commercial sector was highest for warehouses. Flexible use buildings were the second most popular, followed by manufacturing and high bay, which are buildings that have a loading dock clearance height of no less than 24 feet. In the third quarter of 2017, warehouses accounted for about 43 percent of the market, while flexible use buildings had a 21 percent market share. Manufacturing and high bay buildings each held about 18 percent of the market. In total, there was about 59,511,000 SF of supply space in this vicinity of Boston. Of that amount, there was 5,313,000 SF of direct SF available and 529,500 SF of sublease space available. Vacancy rates were about 9.8 percent in the third quarter of 2017. That total breaks down further into statistics for Route 128 South and Route 495 South. Along Route 128 South, there was roughly 26,430,000 SF of supply space on the market in the third quarter of 2017. Just under three million SF was considered direct SF, and there was about 290,000 SF available for sublease. Vacancy rates were slightly higher along this busy transportation corridor, and they clocked in at just over 12 percent. Along Route 495 South, there was a little more than 33,000,000 SF of supply space. That amount breaks down into a little less than 2.5 million SF of direct space, and about 238,000 SF of sublease space. Vacancy rates in this corridor were 8.1 percent in the third quarter of 2017.

A mix of buildings in all commercial sectors and in the different categories (Class A, Class B, and Class C) is represented on the current market. Prospective tenants looking for potential office space will find availability in a wide range. Office space can be found in large high-rise buildings as well as freestanding buildings that are located slightly further from the town center. Those looking for office spaces in town will find an average rate of about $2.00 per SF each month, but rates may be higher or lower depending on factors like the building’s age, its location, its access to conveniences, and the presence of established and anchor tenants. Those seeking a prominent location and good visibility may be interested by a space like the single space in a prominent office building at 100 Cambridge St. The rent is not disclosed, but interested tenants are encouraged to contact the landlord for pricing information. The space available in the building covers an area of about 0.08 acres, and the building itself is a total of 600,000 SF. The interior of the building is sleek and modern, and it has a distinctive façade that makes it attractive for passersby and clients as well as the building’s occupants. Inside, the large office space is considered to be suitable for executive use. The facility was constructed in 1965, and it is not in immediate need of any major improvements or renovations. The building is located in a very pedestrian-friendly location, and it is easy to reach by transportation. Incoming tenants are welcome to use the space for their own needs, and they can also sublease the space. Surrounding the building is a busy business center, and the government district is just several minutes’ walking distance away. There are several older law firms and state agencies in the area, which makes it appealing for investors. The space is move-in ready and fully equipped with state-of-the-art features that are convenient for both clients of the tenants and the tenants themselves. In addition to the working space offered for lease, tenants can look forward to meeting rooms, co-working space, private office and large open rooms designed for teams. Internet and phone connection is ready for use.

Companies looking for expansion opportunity are usually interested in lease deals where they may get more than one space. Such is the case at 359 Newbury St. The building in this case has three separate spaces available, which cover a total area of 0.24 acres. The building covers a total area of 75,807 SF. The rental price is not disclosed, which is not uncommon to find. Interested tenants are instead encouraged to contact the landlord for more information about the building, its conveniences, and its price. This market listing brings opportunity for clients needing office space. Several other anchor tenants, which include medical businesses and other professional entities, are currently located in the building. This is good news for both incoming tenants and investors. Incoming tenants will enjoy the automatic volume of foot traffic that the anchor tenants bring, while investors can rest assured that there are financially sound tenants already occupying the building. Inside the building, tenants will find bright and modern executive-style space for lease. The spaces are available for direct use, and they can be sublet to other tenants as well. The building was constructed in 1910, but it has been renovated and well-maintained, which means that tenants will find little in way of extensive maintenance and modifications. Recent modifications to the building have made it suitable for high-tech use like high-speed internet, and there is a nice mix of private offices, open work rooms, and conference rooms within the space. The building stands five stories high, and it enjoys visibility from both resident and transient traffic. The area surrounding the building is considered to be one of the best in terms of accessibility for car, public transportation, and pedestrian traffic. The location is convenient to I-90, which is one of the most heavily trafficked corridors in the area. Surrounding the facility is a vibrant downtown area complete with premier clothing shops, national brands, restaurants, and bars. Additionally, beautiful brownstone historic homes in the area are a major attraction for residents, which automatically creates a traffic boost for incoming tenants.

In addition to finding a mid-tier building with room for expansion, interested tenants will come across some options for premier move-in ready space. One such example is a high-rise luxury office and professional use building. The building has about 110 units, and it is considered a mixed-use building that has both residential and commercial space. There are several spaces offered for rent in this modern facility, and they range from 0.02 to 0.04 acres. The building itself totals about 225,000 SF. The listing lease price for the spaces is $2.92 per SF each month, which is about average for premier luxury buildings in the area. As in many cases, incoming tenants will find a building that was constructed in the early 1900s (1907, in this case), that has been well-maintained and lovingly restored to meet the needs of even the most modern tenants. The facility is located in a prime area for walking, car transit, and public transportation. A historic residential neighborhood is located close by, which makes this space a good choice for retailers as well as commercial office clients. Also close to the building are several major business centers and anchor tenants, which enhances the building’s appeal for both investors and tenants. The building is also conveniently located to a major MBTA train station that has a commuter rail service and multiple lines. Several major transportation corridors, including I-93 and Route 1, are also situated just minutes away. A bus line is also located nearby that offers frequent and reliable transportation to the area on weekdays and on the weekends.

For many types of businesses, and especially those in the financial sector, having physical access and close proximity to the downtown center is a must. Fortunately, there are office spaces available with such amenities. One example is a large, prominent office building at International Place. The building covers an area of just over one million SF. The building stands an impressive 46 stories high, and to the delight of investors and incoming tenants, it is occupied by several prestigious anchor tenants. The building is surrounded by a beautiful park area, and it has coveted views of the water from the upper floors. The area is listed as suitable for several types of office layouts to meet the different needs of diverse companies. The space can be divided into sections of about four to eight workstations and private offices, or it can be used for one large open sharing space or a combination of both. The facility is considered to be a Class A building that has a futuristic design scheme, complete with a combination of round and rectangular shapes, and it is surrounded by restaurants and prominent retailers, which brings automatic foot traffic to tenants in the building. The listing price for the facility is not disclosed, but prospective tenants are told that the landlord will offer the space for a one-year lease term and is possibly willing to negotiate the price. The building was constructed in 2012, and it has won awards for being LEED-certified. Adding to the building’s appeal is the fact that there are two premier luxury hotels located on the same block. This makes the building a perfect spot for companies who rely on frequent business travel to carry out their operations. Another advantage of the building is that it is easily accessible by public transportation, and there is public parking available for both tenants and the building’s employees. The building is located close to several major business and retail shopping centers, which adds to its appeal for both incoming tenants and potential investors. Several bus and train lines and a commuter rail station are located close by, which makes the building a perfect spot for those commuting to work. By car or public transportation, Boston Logan International Airport is less than 10 minutes away, which is another major point of appeal.

Along with commercial office and mixed-use buildings, there are spaces being rented out and sold in this area of Boston for retail clients as well. Retail space can be found in structures downtown as well as in larger retail centers and in freestanding retail buildings located further away from the town’s center. One example of a retail space that prospective tenants may find is a general retail space listed in a freestanding building. The building covers an area of about 150,000 SF. The space for rent within the building is 0.18 acres. The site is listed as having excellent visibility, with high natural volumes of foot traffic as well as convenient access through several types public transportation, due to the fact that there are several major MBTA stations nearby. This factor is critical for retailers who rely on public transit to bring the transient tourist crowds, particularly on the weekends. The building itself is a multi-floor structure with large front windows, which bring both natural light to tenants inside and visibility from the street. The building was constructed in 1965 and has been modified and maintained since then to ensure that it remains efficient and ready for modern-day use. The space for lease within the building includes a kitchen and a private bathroom, which makes it suitable for uses like a café or coffee shop, and it can also be used as an office space for a small business. The space is considered to be very energy-efficient, which means that it is offered at a slightly higher price. An elevator is a convenient amenity in the building for both tenants and their clients, as is a private onsite parking lot with space for both the building’s employees and customers to park.

Along with retail space, there is space designated as industrial available for sale and rent. Industrial spaces can be found in outdated warehouse buildings and in vacant lots of land, which are also generally well-located to major area transportation centers. One example of an industrial space available for rent is a single space in an old warehouse building. The space is listed for a lease price of $0.77 per SF each month. Suitable for distribution, commercial activities and light industrial activities, the space is ready to suit a variety of commercial uses. The space available in the building covers an area of 0.06 acres. The entire building is 8,300 SF. The site is located a bit farther from town, but it is situated with strategic access to main transportation corridors, which is critical for companies who rely on both vehicular traffic for business and who need to ship goods and products to consumers locally and on a larger national and even international scale. This building was constructed in the mid-1950s, and it may need some updates and renovations to suit an incoming tenant’s needs. However, the space’s good price point makes it a top choice for companies looking to move in and modify the building for their specific needs. With plenty of space available, the building is also a key spot for companies looking to expand their business operations in the coming years. The first floor of the building covers an area of 2,800 SF, while the second floor has about 1,000 SF of space. The first floor has two large open areas that are about 1,000 SF each, along with separate office spaces that have room for seven offices. This layout is particularly advantageous for prospective clients needing to conduct multiple aspects of business, such as producing consumer goods and conducting office activities under the same roof. The facility is located less than five minutes from several commuter rail lines, and it is located within a 30-minute radius of Boston Logan International Airport.

Along with pre-existing structures, prospective industrial tenants can find unused land and lots on the market. One such example is an industrial lot for lease on Dorchester Ave. The land can be leased in sizes ranging from 0.11 acres to over four acres, which means that there is plenty of room for expansion. A large lot size and easy access to major transportation corridors make the site full of potential for clients who need convenient access to ship goods, such as ecommerce companies, of which there are many moving into the Greater Boston area.

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