Dive Brief:
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General Electric is delaying construction of a 12-story office tower, which is part of the company's new $200 million headquarters in Boston, until 2019, according to Reuters.
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The tower is now scheduled for completion in 2021. Renovations are already underway on two smaller buildings and public space that are also a part of the headquarters project.
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Company officials said the new construction timeline will save millions of dollars. The move is reportedly part of new CEO John Flannery's cost-cutting efforts, according to The Street.
Dive Insight:
GE's new headquarters is part of the 14 million square feet of real estate under development and 40 million square feet permitted and ready to break ground in Boston, The Wall Street Journal reported in May. Of all the new development, roughly 20% is office space and 80% is condominiums and apartment buildings.
The project is located in a part of the city that is experiencing rapid and extensive development. The Seaport District, on the Boston's south side, has seen more than 7.6 million square feet of residential and commercial space added or planned as part of its master plan. That master plan has spurred additional construction in the area, including the GE project.
Development has spread to the Boston suburbs, too. In June, the Somerville (MA) Board of Aldermen authorized the rezoning necessary for the construction of Union Square. The $1 billion, 2.3-million-square-foot mixed-use, transit-oriented development will connect residents to the Massachusetts Institute of Technology, Harvard University and the city of Boston once the beleaguered Green Line light-rail extension is completed.
Union Square will include office, lab, hotel, retail and art space as well as housing, with 20% of the units reserved for low-income residents. The project is expected to create 4,000 construction jobs.
