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Mass Cultural Council told five-year lease renewal will raise costs $120,000 annually but avoid major relocation expenses
Summary
Agency staff reported DCAMM recommends renewing the current Boston lease for five years; estimated annual cost increase is $120,000 versus an estimated $200,000+ in one-time relocation expenses, citing market rates around $80/sq ft and operational disruption costs.
Senior Director of Business Operations and Chief Financial Officer Catherine Cheng-Anderson told the Executive Committee that the Division of Capital Asset Management and Maintenance (DCAMM) recommends pursuing a five-year renewal of the Agency’s Boston office lease rather than seeking a new location.
Catherine Cheng-Anderson said DCAMM’s market analysis shows comparable office space averaging about $80 per square foot. Based on that analysis, she said renewing at the current location would increase annual rent costs by an estimated $120,000 but would avoid more than $200,000 in one-time relocation costs, including construction, moving, and IT transition expenses. “Committing to a renewal now can help avoid both escalating rent and the financial and operational burden of relocation,” Cheng-Anderson said.
Deputy Executive Director David Slatery added historical context: the building was owned by Liberty Mutual when the current lease was negotiated 10 years ago and has since been sold to an investor from Japan. Committee members asked about the annual amount and lease term; Cheng-Anderson confirmed the $120,000 figure is annual and said a ten-year lease is not an option under current circumstances. The committee discussed whether the Agency needs to be located in Boston given hybrid staff schedules; staff emphasized proximity to the State House and transit access for meetings and partners.
Catherine Cheng-Anderson said DCAMM determined the current space remains appropriate for the Agency’s staff size, which has grown from about 24 employees at the time of the last lease to 39 staff today. She said negotiations are ongoing and that staff will continue to keep the Committee informed; no final lease decision was taken at the April 16 meeting.
