Several nonprofits in Boston feeling wrath of rising rent costs

BOSTON — As many people know, the skyrocketing costs of living in Boston is pricing many people out of the city.

A growing number of nonprofits are also feeling the wrath -- including the Big Brothers Big Sisters of Massachusetts Bay.

The program may soon have to start packing up its offices in the citiy's Financial District.

The president told Boston 25 News that the program is about to feel the punch of a 45 percent rent hike to its offices on the eighth floor of a building in Boston. That breaks down to an increase of about $250,000.

It's a hard hit being felt by non-profits throughout Boston, as they struggle to stay in the city.

"It’s a wonderful thing that Boston is booming but it has real implications," said Wendy Foster, president of Big Brothers Big Sisters of Massachusetts Bay.

The Boston boom shows no signs of stopping.

"There’s no ED or CEO I’m talking to right now who isn’t worried about rent," Foster said. "It forces many of us to go out of Boston to chase cheaper rent. It’s very disruptive."

News of a 45 percent rent increase could soon be disrupting the agency’s central location in this high rise on Federal Street in the financial district.

Foster isn’t sure how they’re going to continue in this spot after the lease ends in December but also believes it’s crucial they remain in the city, where it is easy to reach for families, mentors and staff and close to key resources.

"We need to be in a nexis of public transportation and many of our donors are within the metro Boston area it’s super-efficient for us to be in Boston from all of those perspectives," Foster said.

Staying within city limits remains a top priority for many non-profit and for-profit companies, despite surging spikes in rents, said James Elcock, president and managing partner of Colliers International.

“Really being in the hub is what people want," said Elcock. "Right now the market is in the favor of the landlord. There’s a 10 percent vacancy rate in Boston. They’re not willing to subsidize nonprofits and good causes looking for space in this market place."

Foster said the $250,000 increase in rent boils down to about five staff positions,  which she says are pivotal in recruiting and maintaining the programs mentors.

Cox Media Group