KKR Inks Major Lease in Downtown Boston

September 19, 2025

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The property is reaching the end of a $100 million renovation project.

In one of the most significant office leasing deals of the year, global investment firm KKR has signed a 15-year, 132,529-square-foot lease at PGIM’s Two International Place in Boston.

The property was developed by The Chiofaro Co., which is also the building’s leasing manager. The new lease agreement was brokered by JLL, Newmark and Cushman & Wakefield.

This deal reflects KKR’s growth in the area. The firm’s insurance branch has more than 300 employees in Boston. The move will enable the company to continue to expand in the city.

“We are excited to welcome KKR to International Place. Boston continues to stand out as one of the nation’s most dynamic business hubs known for talent and innovation. KKR’s growing footprint highlights the appeal of Boston’s office market and the strong demand for modern, future-ready workplaces.” Joanna Mulford, managing director and senior portfolio manager for PGIM’s real estate business, told Commercial Property Executive.

Two International Place stands 35 stories high and Yardi Research data shows the tower totals 876,195 square feet. The tower is part of the larger International Place property, designed by Philip Johnson. The campus includes a second 46-story tower, bringing the entire property to 1.8 million square feet of office and retail space. PGIM purchased the tower in 2005, the same source shows.

KKR will be joining a tenant roster including Portolan Capital Management, Whale Rock Capital, Needham and Kane’s Donuts, among others, Yardi Research Data shows. Located in Boston’s downtown waterfront area, Two International Place is right across the street from Rowes Wharf, which has a public bus stop, as well as the Aquarium and South Street subway stations. The Boston Logan International Airport is within about 3 miles from the building, and Boston Common is one mile away. The New England Aquarium is also in the property’s proximity.

“KKR’s decision underscores the confidence global firms have in downtown Boston. Together with PGIM Real Estate, we’ve reimagined this landmark property to set a new standard for workplace excellence, and KKR’s commitment validates that investment.” Don Chiofaro Jr., vice president of The Chiofaro Co. told CPE.

Renovations at International Place

This major lease agreement for PGIM and The Chiofaro Co. coincides with their $100 million project to renovate the space. The redevelopment aligns with PGIM’s and The Chiofaro Co.’s goal of delivering an elevated, professional space for tenants. Already, International Place benefits from its views of the waterfront and a private rooftop deck. The upgrades will reimagine the lobbies and entryways, while also adding a 20,000-square-foot amenity center.

Chiofaro brought on Gensler, OBJ and Columbia Construction to lead the efforts from the design stages through construction. Efforts have been ongoing since 2023 and have been done in phases. Phase two of the efforts began last July and included the renovation of IP Commons, the central lobby space. Work included upgraded lighting, increased seating and an upgraded 55-foot water feature in the center of the atrium and other garden-like features.

A major part of the effort focuses on the Aries Club, including amenities such as a boardroom, a full bar, restaurant, a 3,500-square-foot outdoor terrace, upgraded bike room and locker areas a golf and F-1 simulator and more. On top of interior renovations, the investment also included expanding the events program within the building for community engagement. The project is expected to wrap fully in the next few months.

Recent office interest in Boston

The office vacancy rate was below the national average as of May, Yardi Research Data shows, at 16.9 percent. While the gap between demand and supply continues to widen with a pipeline of 5.9 million square feet, the area is still seeing activity.

In August, Connolly Brothers invested in a 160,000-square-foot office building in Beverly, Mass. At the time of acquisition, the property was vacant. Moving forward, the owners plan to reposition the property as a build-to-suit or through a full-building renovation.

Last week, the metro saw another company relocate its headquarters. Hasbro, a toy and game company, is relocating from Pawtucket, R.I., to the Seaport District. The new base for the company will span 265,000 square feet across seven floors at 400 Summer St., which opened last year.