News & FAQS

Landlords, Tenants Sweet on Spec Suites
By: Ryan Enright, lafayetteccboston.com | July 16, 2018

BOSTON — Spec suites have not always had the allure or intrigue they do today. Traditionally aimed exclusively at startups and small companies, spec suites were small, usually ranging from 3,000- to 5,000 sf, and were considered ideal for temporary occupancy. But today, the innate characteristics of spec suites—their flexibility and quick move in potential have led to an uptick in demand from fast-growing companies, both startups and established operations, and particularly in the Boston area. With demand for spec suite space evolving, the market is changing as a result, creating new opportunities for developers who can see the writing on the wall to lease space quicker and deliver what the market is looking for.

Just 10 years ago, most companies were willing to wait anywhere from six- to 10 months for their dream office space to be built out. But now, the appeal of spec space is reaching a variety of company profiles for several reasons: it significantly shortens the search-to-lease timeline; offers flexibility to spur growth; and supports companies facing the need to be operating in a much quicker timeframe than they had previously.

What sort of tenant is drawn to this type of space? So far, we are seeing particular interest in spec space from young companies planning for growth. For instance, in marketing the 30,000sf spec space at Lafayette City Center in Downtown Crossing, owned and managed by The Abbey Group, we have seen interest from companies which just closed on a second or third round of funding and want to hire 150- to 200 people. For these tenants, a quick move-in, limited startup capital costs and business growth are imperative to keeping their funders happy.

We are also seeing demand from well-established firms looking to open an office in the city to attract young talent and who want to be up and running quickly without large buildout risk and time hurdles. For these companies, planning for future growth in office space is both critical and one of the hardest forecasts to project as they are not just looking for space that will meet today’s needs, they are seeking a flexible office that can grow with them as they require more space in the coming years.

Developers who can anticipate this increase in demand for larger parcels of spec suite space are reaping the benefits. The dearth of larger spec suite space in the market means that companies looking for this space aren’t finding what they’re looking for. That is where developers are getting ahead of the trend, with Lafayette City Center, which just underwent an extensive renovation, offering a considerable amount of spec suite space for companies that want flexibility and speed of a spec suite space but also require more space than such suites typically offer. Developers whom make the commitment benefit from reduced downtime, quicker cash flow, and a high re-usability of their space as most are designed to meet the needs of the majority of today’s users.

One thing is clear—spec suite space isn’t going anywhere anytime soon. As companies continue to increasingly value open floor plans and collaborative footprints, and more companies’ bottom lines demand flexible space that can accommodate speed and growth, we can expect to see more and larger variations.

The best part? It is a win-win for developers and tenants alike. Tenants are able to get space that offers open floor plans quickly with minimal start-up costs, and developers and landlords are able to design and develop spaces appealing to a variety of companies. As the demand grows from small start-ups to companies of all sizes, larger footprints are likely to be the next wave of spec space. Developers and landlords that adapt to this demand for flexible, ready-to-go space have an opportunity to attract companies large and small poised for growth.

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Lafayette City Center in the News

• Landlords, Tenants Sweet on Spec Suites — Ryan Enright, Senior Vice President, JLL
• I Am Downtown Boston: Eric Bart – Senior Director, R & D, VMware
• The Abbey Group Adopts Multifamily Strategy In Hyatt Partnership For Office Amenities
• Here Are 17 Tech Companies Who Moved to (or Within) Boston in 2017
• GSVlabs launches in Boston funding 5 of Boston’s top startups
• 100 Summer St. Sees Surge In Tech Tenants
• VMware moving from Cambridge to Boston’s Downtown Crossing
• Lafayette City Center Adds Another Tech Tenant
• From desolate streets to Boston’s hottest destination
• Beehive owner proposes Downtown Crossing restaurant and ‘social concept’
• Swiss tech firm lands permanent U.S. HQ in Downtown Crossing
• ‘Pop-up’ plaza to appear in Downtown Crossing Tuesday
• Foreign buyers at Millennium Tower show that Boston is on a world stage
• Why tech companies have left the Innovation District for downtown Boston
• Sonos opens new Boston office, complete with ‘behemoth’ acoustic chamber
• Why Downtown Boston Still Amazes People

• Rejecting the Cubicle for an Expanse of Space
• Downtown Crossing named one of country’s ‘most livable’ neighborhoods — but there’s a big caveat
• Quirky offices in downtown Boston reflect influx of tech firms
• Media company moving to Downtown Crossing
• Sonos is latest tech firm to head to Downtown Crossing
• Cambridge-based Sonos is relocating to Downtown Boston
• Downtown Crossing’s dramatic return
• Carbonite’s new headquarters in Downtown Crossing will accomodate 400
• Dublin retailer to open store at former Filene’s site
• Boston suddenly finds itself the state’s tech startup capital
• Downtown Crossing becoming exclusive address
• Downtown Crossing: An old district tries to become a new neighborhood
• Tech Companies Increasingly Seeking Refuge in Boston’s More Established Core
• Wave of startups fills up Downtown Crossing offices
• Hard to recognize - new places to live, work and play: View Video
• Theater District’s Own Drama: View video

FAQS

​Why is infrastructure important?

​The advanced infrastructure that is in place here translates into significant cost savings for the tenant and is expensive to duplicate.

​How would you describe the LCC experience?

​The lobby and common areas have been completely renovated and the lobby feels open with lots of natural light. The office space is modern with expansive floor plates.

​Tell me about the access and amenities.

​The location is perfect. It is 2-3 blocks from South Station, the Mass Pike and I- 93. The MBTA is around the corner. LCC is uniquely connected to the 498-room eco-friendly Boston Hyatt Regency hotel. You are in the midst of The Ritz Carlton at Boston Common, Sports Club/LA, and the city’s best theatres, restaurants and shopping.

​What is the efficiency factor?

​It is 89%, higher than most Boston towers. The office layout enables a tenant with a larger requirement to occupy less space for a lower cost per employee.

Is power a plus?​

​Definitely. The space was built out at an extremely high level including back up generators and domestic water, with more than ample basic power.

Are you an environmentally friendly building?

​LCC has achieved Energy Star certification which acknowledges the landlord’s efforts toward maximizing operational effiencies while minimizing environmental impacts.

​Is there room to grow?

​Yes. Expansion space at LCC is available today.