M&T Bank Signs Lease for New Boston HQ

Real Estate

Millenium Partners has inked a 39,000-square-foot leasing agreement at Winthrop Center, a 1.8 million-square-foot mixed-use development in Boston. The tenant, M&T Bank, is expected to move in this fall.

Cushman & Wakefield Executive Managing Directors George O’Connor and Thomas Ashe represented the tenant, while CBRE Executive Vice President Timothy Lane and Vice President Charlie Jennings worked on behalf of the landlord.

The $1.4 billion development broke ground in 2018 and came online last year. Cale Street Partners provided a $775 million construction loan in 2020 for the project, according to CommercialEdge data. Partners on the project included general contractor Suffolk and design firm Handel Architects LLP. The LEED Platinum- and Well Gold-certified building is also the largest Passive House office project in the world.

Other tenants at the Class A building comprise Deloitte, which signed a 138,000-square-foot lease in July last year, McKinsey & Co., Cambridge Associates and Income Research and Management.

The mixed-use development, up close

The property includes 812,000 square feet of office space, some 21,000 square feet of retail, 400 residential units and a multi-floor public gathering space. Additionally, there is a 25,000-square-foot amenity area dubbed The Collective, which includes coworking spaces, a 5,000-square-foot fitness center with sports simulator and recovery room, a coffee bar and a game room, as well as a quiet zone and underground parking.

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Located at 115 Federal St. within the Central Business District, the 691-foot tower is close to a host of dining and retail options, including The Corner Mall and Faneuil Hall Marketplace. General Edward Lawrence Logan International Airport is 3 miles away. The high-rise is also some 5 miles from Tishman Speyer and Harvard University’s Enterprise Research Campus, a mixed-use life science project that is expected to come online in 2026.

Boston’s steady office sector

According to the latest CommercialEdge office report, the Boston market had a 11.8 percent vacancy rate as of December last year, lower than the national average, but 280 basis points higher than at the same point in 2022. The metro boasted the fourth highest average listing rate in the country, at $47.27, after Manhattan, San Francisco and the Bay Area.

Significant deals from last year include Novo Nordisk’s 165,940-square-foot, long-term lease at Alexandria Real Estate Equities’ life science facility. Other leasing agreements include Astellas Pharma Inc.’s 62,000-square-foot commitment within DivcoWest’s six-building Cambridge Crossing development. The mixed-use project will total some 4.5 million square feet upon full buildout.

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