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Menino Asks Tenants to Stay in Boston

Boston is an ideal location for many businesses, with the convenience of public transportation and the prestige of the high-rise in the big city. For most, it is worth the higher rental rate to boast a Boston address on their letterhead. However, there is a concern that the lower rents and increased vacancy in the suburbs will draw some tenants out of the downtown area. Mayor Thomas M. Menino recently announced plans to target business in Boston whose leases expire in the next 24 months and offer “financial and technical assistance” as an incentive to stay in Boston. The flight to the suburbs will be a wake-up call to Boston landlords who are not willing or able to adjust their rental rates for struggling companies. The question remains as to how much funding the city will contribute to this effort and how effective it will be in keeping tenants aboard. Owners in the suburbs are well advised to find ways to be at the top of the list of alternatives for any business facing lease expiration in the next two years. Rest assured, they will be scouring the market for suitable alternatives, and in some cases the savings will be worth the cost of printing new letterhead. Sign up for free CREFrontline updates, if you haven’t already. It's free and has absolutely no obligations.