The Boston Redevelopment Authority Board advanced two warehouse rehabilitation projects in the Fort Point Channel neighborhood late last week. The two developments will bring more office space to an area that had been planned for residential uses, but the board, facing rapidly changing economic conditions and besieged by a stream of union officials pleading for work, seemed eager to advance any project that would put shovels in the ground.
The Archon Group and Goldman Properties got the green light on their planed $40 million makeover of former warehouse buildings at 49-63 Melcher St. Acheron and Goldman are renovating the warehouses into 221,500 square feet of contiguous office and retail space, including 60,000 square feet of rooftop additions and infill development along the buildings’ rear. The BRA expects construction to begin in third quarter of 2009.
The BRA Board also approved plans Thursday night to turn 140,000 square feet of warehouse space at 316-322 Summer St. into office space with ground floor retail. The $32 million development, by Lincoln Property Group, had been hotly criticized by neighborhood residents and artists because the space was previously slotted for residential development. Lincoln sought a change of use with the BRA when demand for condominiums softened dramatically.
By contrast, and in spite of spreading economic woes, office demand is relatively steady. Vacancy rates remained under 10 percent through the first three quarters of 2008, according to data from Colliers Meredith & Grew. Most of the new office absorption in 2008 has occurred in the Seaport District, Colliers said. The BRA expects construction to begin in March 2009.
Appearing before the BRA Board, City Councilor Bill Linehan said while he supports the neighborhood’s 100-acres master plan, which envisioned a robust mix of commercial and residential uses, “Economic conditions do not support residential at this time.” Boston is facing “considerable” budgetary pressures, he said, pleading for revenue-producing projects to “offset losses in other areas.”
