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Hines Secures Second South Station Tower Tenant

Hines' under construction South Station Tower in Boston.
Bisnow/Taylor Driscoll
Hines' Under-Construction South Station Tower In Boston

A Rhode Island-based property insurance company has signed a lease at South Station Tower as it builds out another office building in Norwood.

FM Global signed a 50K SF lease with developer Hines at the under-construction office building, the Boston Business Journal first reported.

"This new lease will provide additional modern office space for our existing Boston-based employees and complement FM’s broader strategy to increase our presence in key cities around the globe," an FM Global spokesperson said in a statement to Bisnow.

The insurance company is the second tenant in the 51-story building, following Jones Day's 40K SF lease late last year.

The office tower, scheduled to be completed later this year, still has more than 600K SF of office space left to fill up in a relatively slow leasing market. The South Station submarket had a 21.1% vacancy rate in the fourth quarter, just below the city average of 22.7%, according to CBRE.

"FM’s commitment to South Station Tower reinforces the ongoing trend toward new trophy office buildings that deliver unparalleled experiences for clients and employees," Hines Senior Managing Director Sarah Hawkins said in a statement. "With direct access to the city’s most connected and active transit hub, our tenants are able to expand their reach to a diverse and highly skilled talent pool from both urban and suburban areas."

The lease is just one of FM Global's moves to expand in the market. The insurer, in partnership with Hobbs Brook Real Estate, broke ground in April on its 320K SF office and life sciences building in Norwood. The building, located at 1151 Boston Providence Turnpike in Norwood, is scheduled to deliver in 2026.

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