BOSTON — International Place has recorded more than 500,000 square feet of office leasing activity over the past 12 months, according to the property’s owners, as Boston’s commercial real estate market continues to adjust to changing expectations about where and how employees work.
The Chiofaro Company, in partnership with PGIM Real Estate, said the Downtown Boston complex completed 32 leases during the period, with a weighted average lease term of more than 10 years. More than 250,000 square feet of the activity came from companies expanding their existing presence in Boston, the owners said.
The deals include new leases, expansions and renewals involving companies such as McCarter & English, TD Bank US, KKR, PNC Bank, Ryan LLC, Alera Group, Callodine Capital and software company Postman.
The leasing activity comes as employers continue to reassess their office needs following several years of hybrid work. For landlords, the shift has increasingly placed a premium on properties that offer amenities, convenient locations and spaces designed to encourage employees to spend more time in the office.
At International Place, that strategy has included a major renovation program totaling more than $100 million. A centerpiece of the project is the recently completed Aries Club, a 23,000-square-foot amenity center reserved for tenants.
The facility includes meeting and conference rooms, lounges, social areas, wellness offerings and flexible workspaces. The owners also have redesigned the property’s public spaces and lobbies, upgraded retail and dining options, enhanced technology infrastructure and transformed the IP Commons into an indoor green space intended for gatherings and collaboration.
“Companies are making a clear statement about the future of work,” Donald Chiofaro Jr., vice president of The Chiofaro Company, said in a statement. He said the volume and length of the leases demonstrate the value tenants place on the property’s workplace environment.
The leasing figures offer one measure of activity in a Boston office market that has faced significant challenges since the pandemic. While many employers have adopted hybrid schedules, companies have also increasingly sought higher-quality offices that can serve as hubs for collaboration, meetings and company culture.
Chiofaro characterized that shift as a “flight to quality,” arguing that companies are placing greater emphasis on the quality of their workplaces as they seek to attract and retain employees.
International Place encompasses roughly 1.8 million square feet in two towers in Boston’s Downtown Waterfront. Its location provides access to public transportation, the Rose Kennedy Greenway, the waterfront, restaurants and the Financial District.
The property’s latest leasing activity also comes as the renovation program nears completion. The owners expect the broader reinvestment project to be finished early this fall.
“Surpassing 500,000 square feet of leasing activity over the past year reflects the confidence companies continue to place in premier office environments,” Ryan Barrett of The Chiofaro Company said in a statement.
For International Place, the new commitments provide a significant block of long-term occupancy at a time when office landlords across Boston are competing for tenants by investing in buildings, amenities and employee-focused spaces.
The activity also illustrates how the office market is evolving: Rather than simply returning to the pre-pandemic workplace, companies are making longer-term decisions about the type of office environment they want and how that space fits into a hybrid workforce.
