- Fidelity Investments is subleasing its 803K SF headquarters at 245 Summer St. as it prepares to relocate to the redeveloped Commonwealth Pier in Boston’s Seaport next year.
- The move contributes to rising availability in Boston’s office market, though overall availability dipped slightly last quarter after years of increases.
- The company’s new 650K SF space at Commonwealth Pier is part of a phased mixed-use redevelopment led by Fidelity’s real estate affiliate, Pembroke.
Big shift for a Boston staple
Fidelity Investments, one of Boston’s largest employers, is preparing to vacate its long-standing headquarters at 245 Summer St. near South Station, as reported by Bisnow.
The financial services giant has officially put the 803K SF office on the market for sublease, according to a first-quarter report from Savills.
The 14-story building totals 910K SF and has been Fidelity’s HQ since 2012, though it has occupied the space since 1999. The property was purchased by Benderson Development in 2004, and later reacquired in 2020 by Horizon Real Estate Investors — a Fidelity-affiliated entity — for $728.5M.
Onward to the Seaport
Fidelity plans to relocate to a new 650K SF headquarters next year at Commonwealth Pier, a redevelopment of the World Trade Center complex on Seaport Boulevard. The project is being spearheaded by Pembroke, a real estate firm affiliated with Fidelity.
The Seaport development will open in phases, beginning with retail, dining, and public space launching this summer, followed by Fidelity’s workspace in 2025.
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Office market ripple effects
The sublease listing comes at a delicate time for Boston’s office market. While the city saw its first quarterly decline in office availability in three years — dropping 90 basis points to 23.5% — new large-scale sublease space could weigh on the market’s recovery.
According to Savills, Boston’s sublease availability ticked down from 4.5M SF to 3.6M SF last quarter, though Fidelity’s listing could reverse that trend. Leasing activity hit 1M SF last quarter, up from 600K SF a year ago, but still well below the 3.4M SF peak in Q3 2023.
Why it matters
Fidelity’s HQ move reflects a broader shift in workplace strategies among large companies, especially as return-to-office mandates increase. In 2023, Fidelity boosted its in-office requirement to 50% of the time, doubling its previous policy.
With nearly 6,000 local employees, Fidelity’s decisions have an outsized influence on Boston’s office dynamics — and its sublease could add pressure to an already cautious landlord market.
What’s next
As Fidelity transitions to its new waterfront home, Boston’s office market will be watching closely to see how quickly 245 Summer St. can secure new tenants. The success of that sublease could offer a read on future demand for large downtown office blocks in a post-pandemic era.
