State Street Corp.'s new South Boston offices will help unite two distinct areas of the neighborhood still separated by empty lots and parking facilities.
The 11-story building will connect traditional South Boston with the rapidly growing Seaport District, Mayor Martin J. Walsh said at the ribbon-cutting for 1 Channel Center, located at Iron and A streets.
"I'm sure, month by month, you'll see commerce emerge" from people who recognize that State Street's employees — which will number 3,500 in the building by the fall — need places to work out and eat, State Street chairman and CEO Jay Hooley said.
The financial services firm, which has a 15-year lease for the new building, started consolidating employees there in February from four Boston locations where leases were expiring: the John Hancock Tower, Copley Place and the Prudential in the Back Bay and Lafayette City Center in Downtown Crossing. About 1,500 employees have moved in so far. State Street will offer a shuttle between there and its 1 Lincoln St. headquarters, which will be maintained.
The Boston Redevelopment Authority polled Seaport District workers, visitors and residents about Seaport District retail needs in December. A grocery store, pharmacy and more sandwich/salad shops were the top responses.
But although State Street touts its new facility as being in the Innovation District — a term coined by the Menino administration as another name for the Seaport District — it's actually closer to traditional Southie. It's just 0.2 miles from West Broadway, while twice as far from Congress Street in the Fort Point neighborhood.
With its leases expiring this year, Hooley said State Street considered several options, including relocating workers outside of Boston. "We examined that and quickly dispensed that," he said, citing the company's expertise in the city.
State Street bills its new building as the "workplace of the future," designed to support mobile and flexible work schedules and promote employee collaboration through shared and more open work spaces. Close to 70 percent of its employees have some type of flexible work arrangement, whether it's working from home or other locations, compressed or reduced schedules, or job sharing.
The building includes a "flex center" with 28 computer stations and three offices where employees from other locations can plug in and work.
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