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Rethinking the Glass Tower: Designing Workplaces for a Hotter World

Thursday, November 6, 2025

On Tap Today

  • Hot property: As cities heat up, glass towers are becoming liabilities, forcing a rethink of how offices are designed and cooled.

  • Bounce back: A rare bright spot in the office market as Blackstone’s Back Bay sale bucks the downturn.

  • Unlocking NYC: New York voters just clipped City Council’s wings, giving developers a clearer runway for future projects.

  • Join today’s webinar: Multifamily operators are using automation to streamline management, enhance security, and improve the resident experience. Sign up

MarkerValueDaily Change
S&P 5006,796.29+24.74 (+0.37%)
FTSE Nareit (All Equity REITs)760.18+0.56 (+0.07%)
U.S. 10-Year Treasury Yield4.15 %−0.01 ppt (−0.19%)
SOFR (overnight)4.04 %unch.
Numbers reflect end-of-business data from November 5, 2025.

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Office

Cities are warming at a pace that few architects or planners ever anticipated. The number of extreme heat days is rising so fast that many downtowns are becoming heat islands, where glass towers trap sunlight and concrete radiates it back long after sunset. Heat-related deaths have tripled in the United States since the 1990s, and last year Europe’s record temperatures sent thousands to hospitals. What was once seen as a summer health concern is now reshaping the way we think about work, comfort, and productivity.

A new report from Savills argues that the modern office is ill-equipped for the realities of a hotter world. Even slight increases in temperature can impair focus, slow reaction times, and elevate stress levels. For the one in five workers who are neurodivergent, those effects can be even more severe. The glass-heavy designs that defined the past two decades of office development have turned many workplaces into greenhouses. Facades that look sleek on renderings often can’t handle sustained heat, especially when employees are seated directly beside large windows.

Looking forward may require looking backward. Offices built in the 1980s and 1990s, with concrete exteriors and smaller windows, handle temperature swings far better than today’s transparent designs. Adaptive interiors, flexible seating arrangements, and smart systems that monitor and respond to changing heat patterns may be the next frontier in office design. As climate change continues to test the limits of the built environment, the coolest buildings of the future may be those that learn to bend rather than break.

Overheard

Blackstone Inc.’s recent sale of its 13-story office building at 399 Boylston St. in Boston’s Back Bay for $125 million marks one of the rare positive exits in a troubled office market. The acquisition price equates to more than $500 per square foot, and importantly, it edged out Blackstone’s original 2014 purchase price of $117 million. This premium tells a story of a handful of well-positioned assets bucking the broader trend of distress in office real estate.

From a sector perspective, this deal suggests a sliver of hope for office asset owners, ideally those with high occupancy, strong locations, and landlord execution. Boston’s Back Bay saw occupancy of about 90% at this property and only 18% vacancy in the sub-market, compared with 27% downtown. But before we call a general recovery, it’s important to unpack what makes this deal unique. The property’s prime location, premium lease base, and institutional buyer-seller dynamic may mean it’s more of an outlier than a trend-setter.

While Blackstone’s success here is noteworthy, most office markets tell a different story: high vacancy, weak leasing momentum, and distressed pricing remain the default. This Boston deal doesn’t alter that reality. The premium achieved is unlikely to be replicated in secondary markets, older buildings or Class B/C assets that lack tech tenants, amenity-rich upgrades, or proven demand. For many owners, that means chasing the front end of the recovery while the tail end still hesitates.

Much of the chatter in New York real estate has been about the incoming mayor—and with good reason. But Tuesday night’s ballot produced two referendums that may matter even more for property owners. First, voters approved a measure to limit the power of individual City Council members to block development projects via local veto. In parallel, they passed a separate housing-related ballot item aimed at streamlining construction approval and increasing accountability for stalled developments. According to the Wall Street Journal, the so-called “development reforms” were hailed by major developers as a victory.

Why are these reforms so urgent? For years, New York’s development pipeline has been hampered by what developers call “member-de-barring” rules—single-council-member discretionary vetoes that can kill rezoning, affordable-housing deals and mixed-use projects. The referendum reforms reduce the hold any one councilperson has over diverse neighbourhood planning efforts, making large-scale approvals more likely. For landlords and developers this means less political risk and more project feasibility—two components the market has painfully factored into valuations for quite some time.

From the real-estate-owner’s vantage point, these outcomes could shift how deals are structured and priced in the city. A future where political entanglement is less unpredictable means basing underwriting on construction fundamentals—not just advocacy risk. That said, victory doesn’t guarantee execution: next steps include rewriting zoning rules, adjusting approval timelines, and aligning community boards. Owners still face macro pressures—construction inflation, financing costs, tenant demand shifting—but with the referendum in place they at least have one less variable to worry about.

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