Tech companies and startups are now looking “outside the box” for office space, and scouring urban neighborhoods for rent value and Innovation District potential in the Broadway and Andrew Square areas of South Boston, a neighborhood that is radically transforming as a result of a boom in development, an influx of young residents, and a surge in new amenities, from restaurants and wine stores to yoga studios. Yes, there’s even a Starbucks now.
While the neighborhood has always been a great location, several new factors are making the area a serious consideration for tech companies and startups looking to be in the right place at the right time.
- The MBTA Red Line: The Red Line, which also runs through Harvard and Kendall Squares, as well as Downtown Crossing, is hot right now. Tech companies live on the Red Line. South Boston’s residential growth has been benefitting greatly from this connectivity in recent years, luring young people to live there while commuting to Cambridge. Now, businesses are looking to locate in Southie, too, because the Broadway and Andrew Square T stops are just one and two stations beyond South Station, respectively.
- The Rents are lower: Rents in this area are typically in the high $20s per square foot for Class B office space. The closer you get to West Broadway and the Fort Point area, rents rise to mid-high $30’s psf.
- There’s cool space: While there is new construction happening, especially in the West Broadway area closest to the Broadway T stop, companies looking to move to the area also are excited by the character and charm of existing industrial space, especially compared to newer buildings in the Innovation District, or even Downtown Crossing.
- There are lots of new amenities: There are many new bars, restaurants, cafés, clothing shops and Hubway bike stations, giving South Boston the glow of an after-work hot spot. And it’s close to the beach! The residential and amenity boom is making recruiting even easier.