Federal Realtys Spec Office
Why venture into the spec office game--like the 100k SF that Federal Realty broke ground on today at the $1.5B Assembly Row in Somerville? Strong leasing, especially by growing tech and innovation companies, and tightening markets, Federal Realty Boston president Don Briggs tells us.
We never understand why they don't just use the heavy machinery behind them. Federal's last spec office was a 65k SF pre-recession project in Northern California. It started two years of construction on the $35M office here because potential tenants--who may also be looking for space in the Seaport, Financial District, and Cambridge--wantan existing building rather than a build-to-suit, says Don (far right, next to and Somerville Mayor Joseph Curtatone and US Senator William Cowan). The spec project makes sense for an internal reason: to open at the same time all four blocks of the $350M Phase 1, which also includes 450 apartments in two buildings, 330k SF of retail and a three-story cinema.
