Page 34 - BusinessWest January 23, 2023

known as 1550 Main was acquired by MassDevelopment from the federal gov- ernment in 2009. At that time, it was roughly 70% occupied, said a spokes- person for MassDevelopment, adding that, after achieving all its stated goals for the property, the agency decided to put the property up for sale through a disposition process to allow it to refo- cus its efforts on other projects.
That includes an initiative in Green- field, where MassDevelopment is partnering with the city and the Com- munity Builders in the acquisition and redevelopment of the former Wilson’s Department Store property in the heart of the community’s downtown. The
“Even those working at home still go to the office — businesses prefer the hybrid model. They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”
erty to its best and highest use. This type of focused teamwork is how long- lasting redevelopment takes root. It is what makes converting an old federal courthouse into a stunning multi-tenant office building possible.”
The property went on the market in the spring of 2022, and the request for proposals issued by MassDevelopment attracted a number of bids.
Moving forward, Mitta said several of the leases of current tenants will be expiring over the next several years.
He expressed optimism for renewals, but also for new tenants looking to take advantage of the property’s location and other amenities.
“Tenancy is not a permanent thing — tenants come and go; we know that,” he said. “Some leases are going to expire over the next few years, but we know how to market, and we have a very strong team here.”
Elaborating, he said this team is hoping to attract some current occu- pants of class-B space to properties that are not much more expensive but bring a number of amenities that class-B properties do not, including parking garages, lighting safety, and that aforementioned location in the heart of downtown.
The property at 1550 Main differs from its neighbor, Tower Square, to which it is connected by a skybridge, in many respects, said Mitta. He noted that Tower Square required signifi- cant investment and “re-imagining,”
a word he and Patel use often, such as with new tenants that include the YMCA of Greater Springfield. The newer 1550 Main will not require much of either, he said, which is another of those considerations that prompted interest in the building.
As for the trend toward remote work and hybrid work schedules, Mitta acknowledged that there is likely permanence attached to these trends, but, ultimately, he anticipates that there will still be strong demand for office space, especially in the class- A category.
“Even those working at home still go to the office — businesses pre-
fer the hybrid model,” he explained. “They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”
For evidence of this, Mitta points to Tower Square, where he acknowl- edged that the number of people in the office tower on any given day may be lower than it was prior to the pan- demic. But overall, space needs have not changed to a great degree, and new leases continue to be signed.
“Overall, rent is a comparatively small item on the P&L statement,” he said, adding that, for this reason, he has seen few if any tenants at Tower Square downsizing. BW
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redevelopment will create roughly 65 mixed-income rental units and reacti- vate prominent first-floor and basement retail spaces through the relocation and expansion of Franklin Community Co-ops’s Greenfield store, Green Fields
Market.
Referencing 1550 Main, MassDevel-
opment President and CEO Dan Rivera said, “working with tenants, partners, and the city of Springfield over the years allowed us to cultivate this prop-