Deloitte Signs 138K SF Lease At New Boston Office Tower
The landlord announced Thursday it secured a 138K SF lease with consulting firm Deloitte, which plans to move into the space in fall 2024. MP Boston touted the deal as the largest office lease signed in the Boston area this year.
The firm is relocating from its 135K SF at 200 Berkeley St. in the Back Bay. Kevin McGovern, New England managing partner at Deloitte, said the company was attracted to the space because of its location.
"First, we want our Boston space optimized for our colleagues, as we continue to shift to a hybrid workplace model, and the broader community to come together and create an impact that matters," McGovern said in a statement to Bisnow. "Second, we want to reinforce Deloitte’s commitment to downtown Boston as a thriving business community.”
Last year, MP Boston secured three leases for the 812K SF of offices at Winthrop Center. Cambridge Associates signed a 15-year, 115K SF lease in February, Income Research + Management signed a 39K SF lease in May, and McKinsey & Co. signed a 95K SF lease in September.
MP Boston principal Joe Larkin told Bisnow the Deloitte deal brings the office space to 60% leased, and he said it is a sign that Boston's central business district remains strong.
“When people talk negatively about the Financial District, I don’t think they’re fully informed,” he said. “There is such infrastructure here that is taken for granted. Downtown Boston is an amazing place, and we just don’t get burdened by a particular moment in time.”
Larkin said Winthrop Center in particular has matched well with what today's tenants are looking for, including outdoor space, collaborative areas and environmental sustainability.
“It’s a living, breathing example of what we are trying to do: connect the community," Larkin said.
The residential component of the building, which consists of 317 units, welcomed residents in April. The first office tenant, Cambridge Associates, is set to move in this month.
The building's opening was a long time coming. The seven years from when MP Boston won the public bidding process to develop the site in 2016 to now have been filled with delays and long revision processes, some of which were exacerbated by the pandemic.
Winthrop Center's office component is the largest in the country built to Passive House sustainability standards. The building will also include a 5K SF fitness center and a 24K SF coworking space dubbed The Collective that overlooks the Winthrop Center Square Park.
The lease also comes as Boston's downtown core continues to feel pain as sublease space floods the market and vacancy rates are the highest they have been since the Great Financial Crisis. Newer buildings like Winthrop Center have largely performed better than their older counterparts, as tenants have gravitated toward the highest-quality space.