Real estate

Office rents soaring in city’s Innovation District

BOSTON ,MA 06/ 11/ 2012 : One Marina Park Drive, Vertex buildings under construction in the foreground with the Moakely Courthouse on the right looking away from the waterfront down towards One Channel Center and the Fort Point Channel and convention center upper left. Boston officials will give State Street Corp. $11.5 million in tax cuts to construct a new office building on the South Boston waterfront, part of the city?s effort to transform the once shabby industrial neighborhood into a thriving district of new homes, businesses, and retail stores. Also looking at other companies that received tax breaks, Vertex and J.P. Morgan Chase in the same area. ( David L Ryan / Globe Staff Photo ) SECTION: Business TOPIC 12statestreet
The Innovation District is seen from above.David L. Ryan/Globe Staff/File

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In the last three months of the year, average rents in the Innovation District surged to $52.92 per square foot, according to the real estate services firm Cassidy Turley. That puts it within 1 percent of the rents in the Back Bay, showcasing a seismic shift in the city’s commercial real estate market that would have been hard to fathom just a few years ago.

The Innovation District’s rise as a home for business is a symbol of Boston’s commercial real estate recovery and as well as a direct reflection of the companies who are driving it. Mixed into its base of financial services companies and law firms is a rising tide of technology and other creative companies that are more interested in occupying restored warehouses than the rareified heights of modern office towers.

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