NAIOP Massachusetts Honors Members for Extraordinary Leadership

Tad Heuer of Foley Hoag LLP, Amanda Strong of MIT Management Company and Taidgh McClory of T.H. McClory LLC to be Honored at Annual Meeting

Today, NAIOP Massachusetts, The Commercial Real Estate Development Association, announced the recipients of the Chapter’s 2020 Government Affairs Champion Award and the 2020 President’s Award. The awards will be presented at the Chapter’s Annual Meeting, preceding NAIOP’s Virtual Impact Awards Celebration on December 2nd.  

The NAIOP President’s Award will be presented to Amanda Strong of MIT Investment Management Company and Taidgh McClory of T.H. McClory LLC in recognition of their exceptional leadership, strategic direction and vision for NAIOP’s diversity, equity and inclusion efforts. With their support, NAIOP has been able to strengthen industry DEI efforts through programming, expanding opportunities for minority and women owned businesses in CRE, launching a DEI strategic plan, and continuing to expand the talent pipeline through the CREST and REEX programs.  

“While diversity, equity and inclusion were brought to the forefront of every conversation in 2020, Amanda and Taidgh have been leaders for NAIOP on these important issues much longer. It is a privilege each year to acknowledge the members who have made significant contributions to benefit our industry, but this is especially meaningful, ” said Leslie Cohen, COO at Samuels & Associates and NAIOP’s 2020 President. “All of us at NAIOP are so grateful to Amanda and Taidgh for their hard work, leadership, and valuable support.”

Tad Heuer of Foley Hoag LLP, will receive this year’s Government Affairs Champion Award in honor of his tremendous contributions to NAIOP’s advocacy, providing comments and analysis on NAIOP’s legislative, judicial, and regulatory advocacy. NAIOP is grateful for Tad’s commitment and tireless advocacy efforts on behalf of the commercial real estate industry.  

“Year after year our members have benefited from Tad’s expertise, but when this pandemic began, Tad went above and beyond,” said Tamara Small, CEO of NAIOP Massachusetts. “This year, he has provided critical analyses and feedback that ensured myriad pieces of legislation and emergency orders were implemented in a thoughtful, practical way under extraordinary circumstances. This recognition is a small token of our gratitude for his ongoing work on behalf of NAIOP.”  

To learn more about NAIOP’s Annual Meeting and Virtual Impact Awards, or to register to attend, visit www.naiopimpact.com.

Mass. Employers Urge Caution on Tax Front

Survey: Employers Weighing Moves, Smaller Office Footprints

On November 2, NAIOP joined leading business groups and chambers of commerce in presenting a framework to legislative leaders on how to approach the state’s fiscal challenges in order to position the state for long-term growth.  The pandemic caused an unprecedented economic decline in terms of its scope and sudden onslaught.  The uniqueness of this crisis requires a cautionary approach to policymaking to ensure there are no unintended consequences or long-term impediments to growth.  The only path to a sustainable recovery is to create a climate for job creation and economic opportunity for all. NAIOP will continue to work closely with other business groups and legislative leaders to advance economic development in Massachusetts. Below, please see accompanying media coverage.

Coverage Written By: Colin A. Young | This article was originally published in the State House News on November 5, 2020.

It has never been easier for businesses and jobs to flee Massachusetts in droves and the House and Senate should think long and hard about that possibility before considering new or higher taxes on companies, some of the most influential industry groups this week warned Democratic leaders.

A giant chunk of the Massachusetts business community sent a letter Monday to House Speaker Robert DeLeo and Senate President Karen Spilka reminding them that “barriers to exit for Massachusetts employers and employees has never been lower” given the way the COVID-19 pandemic has fundamentally changed work for millions of people, and that the fragile economy “requires a go-slow approach to new taxes on business.”

The letter was sent as the House was preparing to release its fiscal year 2021 budget for debate next week. The House budget does not call for higher taxes.

Raise Up Massachusetts and other advocates have called on the Legislature to address looming budget wounds by increasing taxes levied against corporations, annual household income over $1 million and investment profits — a plan Raise Up said has “overwhelming support” among Massachusetts voters but that the business groups said could imperil the tenuous recovery from the spring’s COVID-19 shockwave.

“Employers of all sizes, across the Commonwealth, are wary of the fragile economy, growing and crippling cost pressures, and the very real impacts of remote work on both employee and employer behavior. In this environment of great uncertainty, significant changes to tax policy will exacerbate these considerations and slow the recovery that we are collectively working so hard to achieve,” the groups, including Associated Industries of Massachusetts, Mass. Taxpayers Foundation, Mass. Retailers Association, Mass. High Technology Council, Worcester Regional Chamber of Commerce and more than a dozen others, wrote.

The group’s letter does not explicitly say the organizations strictly oppose any and all tax increases, but calls raising taxes at this point “akin to shooting at a moving target with the potential for dramatic long term impacts for the Massachusetts economy.” The groups have a powerful ally in Gov. Charlie Baker, who has said raising taxes doesn’t “seem like the right thing to do.” And while some lawmakers back higher taxes, the Democrats who run both chambers have not been vocally advocating this year for tax increases.

House Ways and Means Chairman Aaron Michlewitz said Thursday that the House budget does not include any “broad-based” or “targeted” tax increase to balance out spending.

“We didn’t have any broad-based tax increases in this budget,” Michlewitz told reporters. “I think we tried to create a budget that addressed the immediate needs that we see are important during this COVID world that we’re living in, but also didn’t burden forever our constituents in this difficult time.”

Michlewitz, however, did not rule out revisiting tax increases in fiscal year 2022, planning for which will begin as soon as the budget for fiscal year 2021 is complete.

“It was something that we obviously considered but being able to do these one-time revenue fixes allowed us to get through this fiscal year. We’ll have to see where we go in FY 22 because we’re not out of the woods just by getting through FY21, that’s for sure,” Michlewitz said.

While tax receipts have yet to falter, the Baker administration and House leaders are budgeting for fiscal 2021 with the expectation that state tax revenues will fall by about $2 billion compared to fiscal 2020, due to impacts of the COVID-19 pandemic. The governor and House leaders are planning to increase spending in fiscal 2021 largely by relying heavily on one-time revenue sources like federal aid and state reserves.

The governor and House leaders are budgeting based on the expectation that fiscal 2021 tax collections will total $27.592 billion, a 6.8 percent reduction from fiscal year 2020. Senate leaders have yet to outline their budget plans.

Asked whether he would veto tax hikes should be they be embraced by the Legislature, Baker said last month, “I would, yeah.”

In the letter, the business organizations said the Massachusetts Competitive Partnership surveyed 100 employers and found that 60 are “considering moving or allowing for more work to be done remotely out-of-state” and 54 are “considering reducing their overall office footprint in Massachusetts” as a result of the pandemic.

“The ability of employers and employees to locate anywhere makes them more sensitive to costs of living and doing business. Remote working could lead to greater job loss, and a slower recovery with implications for the state’s future competitiveness,” the groups wrote. “The barriers to exit for Massachusetts employers and employees has never been lower.”

Lawmakers should also keep in mind the increasing costs that many business owners face, the groups wrote in the letter, like an impending spike in unemployment insurance costs, rising health care premiums, the new state paid family and medical leave benefit program, costs related to the pandemic and protective equipment, and a rising minimum wage. Some of the business groups that signed onto the letter supported the so-called Grand Bargain, a multi-faceted 2018 law that set a schedule for increases in the minimum wage and the establishment of a paid leave program as part of a broader compromise.

A business with 50 full-time workers earning minimum wage — $12.75 an hour now, but rising to $13.50 as of Jan. 1, 2021 — can expect to see its operating costs increase by $142,670 in 2021 as a result of the minimum wage hike, and projected UI and health care costs, the groups said.

As the Baker administration and Legislature were working to get a handle on the budget picture last month, a handful of advocates called for the state to increase certain taxes to raise additional revenue that will help sustain state programs and services through the pandemic and recession.

“When private spending falls during a recession … cutting public spending only prolongs and deepens the recession,” Marie-Frances Rivera, president of the Massachusetts Budget and Policy Center, said. She argued that Massachusetts should instead raise taxes on “people who have benefited from the economic growth that we’ve seen, wealthy individuals, [and] corporations” as a way to raise money for state programs or services that “really get money flowing through our local economies.”

Raise Up said in September that the results of a survey showed that most people in Massachusetts want the state to maintain or increase spending on public education and health care, and they want businesses and the wealthy to chip in more to offset the devastating financial impact of the COVID-19 pandemic.

[Matt Murphy contributed reporting]

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COVID-19 Update: Governor Baker Announces Targeted Interventions Designed to #StopTheSpread

Earlier this afternoon, in light of the recent rise in infection rates of COVID-19 throughout the Commonwealth, Governor Baker announced several new restrictions and targeted interventions meant to #StopTheSpread.

Stay-At-Home Advisory Updated

The Department of Public Health has issued an updated stay-at-home advisory, asking all residents to stay at home between the hours of 10 p.m. and 5 a.m. with exceptions for necessary activities, such as going to work or school.


Early Closure of Businesses and Activities

In order to ensure that individuals are back at their residence by 10 p.m., Governor Baker has issued a new executive order that requires a 9:30 p.m. closure of certain businesses. However, exemptions will be allowed, including allowing employees to conduct cleaning or stocking businesses overnight, and it does not pertain to construction, manufacturing or lab work. Supermarkets, pharmacies, gas stations, and retail stores will also be allowed to stay open after 9:30 p.m.

This order requires that:

– all indoor and outdoor entertainment venues, such as casinos, theaters and arcades, must be closed to the public by 9:30 p.m.

– restaurants must be closed for table service by 9:30 p.m., although takeout service will be allowed to continue.

– liquor stores and other retail establishments that sell alcohol must cease alcohol sales by 9:30 p.m. (but may continue to sell other products).

For a full list of businesses affected by this order, please click here.


Updated Gatherings Order

In addition to the new business requirements, the Baker-Polito Administration has updated the private gatherings restrictions in the new gatherings order. For private homes, a maximum of 10 people will be allowed indoors, 25 people outdoors. The limit on gatherings held in public spaces and at event venues (e.g. wedding venues) remains the same. All gatherings inside and outside must end by 9:30 p.m. to ensure individuals are in their own households by 10 p.m.


The new gatherings order also requires that organizers of gatherings report known positive COVID-19 cases to the local health department in that community and requires organizers to cooperate with contact tracing. The gatherings order authorizes continued enforcement by local health and police departments and specifies that fines for violating the gathering order will be $500 for each person above the limit at a particular gathering.


New Mask Wearing Guidelines and Requirements

Everyone over the age of 5 must now wear a face covering in public regardless of distance to other people. This means there are no longer exemptions or exceptions for when you can maintain social distance.


Additionally, while the revised order still allows for an exception for residents who cannot wear a face-covering due to a medical or disabling condition, it allows employers to require employees to provide proof of such a condition. It also allows schools to require that students participating in in-person learning provide proof of such a medical or disabling condition.

All of these measures will go into effect at 12:01am on Friday, November 6. Sector-by-sector guidance updates are anticipated to be released later this week.


NAIOP will continue to advocate for policies, Executive Orders and legislation that address how this public health crisis is affecting real estate and overall economic development. We are working on numerous initiatives. Please feel free to reach out to CEO Tamara Small or Government Affairs Associate Anastasia Nicolaou if you have any questions. 

COVID-19 UPDATE: Municipalities Receive New Guidance for Project Review; Governor Baker Files Revised Budget Proposal; Eviction Moratorium Ending Oct. 17; Mayor Announces Housing Stability Pledge for Landlords

This week there were several actions taken regarding the state’s COVID-19 response.

NAIOP Advocacy Results in New Guidance, Proposed Legislative Fix

Chapter 53 of the Acts of 2020, An Act to Address Challenges Faced by Municipalities and State Authorities Resulting from COVID-19, was enacted in April to alleviate challenges faced by municipalities as a result of the COVID-19 public health emergency. NAIOP, together with the Massachusetts Municipal Association and the Home Builders and Remodelers of Massachusetts, worked to ensure that this legislation provided permit granting bodies with the authority they needed to conduct meetings and public hearings remotely.

Late last week, in response to concerns NAIOP and others have raised regarding certain municipalities’ reticence to restart public meetings, the Department of Housing and Community Development (DHCD) released official guidance for municipalities, urging them to conduct remote hearings on all applications for permits or approvals related to housing production, and reinforces that all remote hearings should be implemented in a fair manner for all types of housing, in particular referencing 40B projects.

Additionally, the Baker-Polito Administration has included language in their proposed supplemental budget to end all municipal hearing delays as allowed by Chapter 53 of the Acts of 2020 on December 1, 2020. This proposed legislation is a direct result of NAIOP’s advocacy, and we will continue to monitor the language as it moves through the supplemental budget process.

Governor Files Amended FY21 Budget

On October 14, Governor Baker filed a revised budget proposal for fiscal year 2021. The revised proposal includes over $100 million to support economic development and small business efforts as the Commonwealth continues to recover from the impacts of the COVID-19 pandemic. The Governor’s budget proposes a total of $45.5 billion in gross spending, and authorizes a withdrawal of up to $1.35 million from the Stabilization Fund. In order to avoid further burdening businesses and residents during the ongoing crisis, the Governor’s budget does not include any broad-based tax increases and he has signaled he will veto tax hikes if pursued by the Legislature. 

NAIOP is currently reviewing the Governor’s proposal and will be closely monitoring the budget process.

Eviction Moratorium to Expire – New Resources Announced

The Commonwealth’s eviction moratorium, which applies to residential tenants and small businesses, will expire on October 17. Earlier this week, the Baker-Polito Administration announced a comprehensive set of resources, known as the Eviction Diversion Initiative, to support residential tenants and property owners during the financial challenges caused by the COVID-19 pandemic. NAIOP is supportive of this comprehensive approach to working with owners and tenants to provide critical resources to ensure housing stability. 

The Administration is making a $171 million total commitment this fiscal year, with $112 million of new funding to support new and expanded housing stability programs during the remainder of the fiscal year. Learn more about these resources here.

Mayor Walsh Announces Housing Stability Pledge

Last week, Mayor Walsh announced the creation of the Housing Stability Pledge for landlords. The Pledge, aimed to deter residential evictions during the COVID-19 pandemic, requires landlords to abide by the current CDC Eviction Order; engage with tenants to create a payment plan; accept rental assistance where available; and make rent adjustments for Section 8/MRVP families who are falling behind on their rent. This is an opt-in program for residential landlords located within the City of Boston.

NAIOP will continue to advocate for policies, Executive Orders and legislation that address how this public health crisis is affecting real estate and overall economic development. We are working on numerous initiatives. Please feel free to reach out to CEO Tamara Small or Government Affairs Associate Anastasia Nicolaou if you have any questions. 

Office Space: Dead on Arrival or a New Frontier?

Tenants Are Getting a Crash Course in Remote Work’s Pluses and Minuses

Written by: Tamara Small | This article was originally published by Banker & Tradesman on October 4, 2020

As we approach the seven–month mark since the state of emergency was declared and office workers transitioned to Work from Home (WFH) overnight, many people are asking the same question: Will workers return to the office?  

A review of statistics paints a bleak picture. Office sublease space is at a record high. Occupancy rates in Boston and Cambridge remain in the single digits, while in the suburbs, it’s about a 10 percent occupancy rate. Companies that once said they would come back after Labor Day are now pushing tentative return dates out to January or well into 2021. We have seen the largest quarterly increase in vacancy rates since the fourth quarter of 2001.  

Given the uncertainty about what is to come, few transactions are happening. Rents are beginning to drop and short–term leases, once unheard of, are becoming much more common. Small businesses that support office workers from dry cleaners, to sandwich shops, to shoemakers remain closed. The economic impact cannot be overstated.  

Eric Rosengren, President of the Federal Reserve Bank of Boston, recently commented on the impact of so many empty office buildings.  

“It’s going to be very difficult for Massachusetts to fully recover until Boston fully recovers,” he said. “And a full recovery in Boston requires people to occupy the office buildings we have downtown.” 

However, we are now starting to see more people return, slowly, but surely, to their offices. And, when there is a vaccine, and children return to school and daycare, and commuters get back on public transit, as an industry we will have a unique opportunity to use what we have learned during this time to make offices better than ever. But what do we do in the meantime? 

While only 4 in 10 Americans can work from home, for those who have that privilege, the overnight transition to WFH was fairly seamless. Many companies who had never offered WFH as an option realized that work can, and will, get done remotely. Technology experts have become the glue that holds the office together – constantly adapting and innovating to accommodate cybersecurity, equity and access challenges.  

Tenants Discover Downsides 

There is a lot of positive that came out of this overnight shift. Several studies show that by eliminating commutes, some workers have gained invaluable personal time. Traffic congestion in our cities has improved dramatically, and many municipalities are expanding their alternative transit options, adding bike lanes and expanding walking paths to encourage outdoor activity. 

However, the longer WFH continues, the more we start to hear about its negative impacts.  

First, the boundaries between work and home have blurred. People are working more, and they are exhausted.  

Second, onboarding and mentorship are suffering. Bringing a new person onto a team that is completely remote is extremely challenging, as is mentoring a more junior employee or intern.  

Third, and most importantly, the collaboration and personal connections that shape successful office culture are difficult to replicate in a remote world. Remote work prevents learning by osmosis and diminishes opportunities for teamwork by eliminating those invaluable five-minute conversations that engage people across teams and disciplines. This has a significant impact on employees, particularly those new to the workforce.  

A recent study of employers by MassDOT/MBTA shows that very few companies plan to switch to WFH entirely when the world returns to “normal”:  52 percent of employers surveyed will send all employees back to the office;  41 percent will send some employees; and only 3 percent will remain full-time WFH.  

Embrace Office Innovation 

Clearly, employees will come back to the office, but work from home is here to stay. People want flexibility, but also some human interaction and collaboration. Are our office spaces ready to rise to the challenge? In short, yes. I predict employers will increasingly adopt a hybrid model that includes some remote and some in–person days. This means a total revision of what office space looks like, how it works, and how employees interact.   

A new and revived office sector will include an increased focus on wellness, collaboration, technology, and community. These components are critical as space becomes more fluid and flexible.  

At a recent NAIOP event, a panel of local experts shared what they are already beginning to see for the future of the office. Elizabeth Lowrey of Elkus Manfredi said, “the days of stack–and–pack are over.” Vickie Alani of CBT shared that we will likely see home offices remain dedicated spaces for focused work, while office spaces will be designed to enable remote and in–person collaboration. Kimberly Smith of Knoll focused on the enhanced role of technology to ensure that people at home and at the office “have an equitable experience in their office interactions.” And moderator Lauren Vecchione of Colliers Boston summed it up with the following statement: “If you take anything away from the discussion today, it should be that employees will come back to the office.” 

So, while the next few months may be a challenge, now is not the time to ring the death knell for the office sector. Instead, it’s time for CRE to embrace innovation and give the people what they want – a new and improved office for the next generation, today.

SJC Supports NAIOP Position in Sudbury v. MBTA

This morning, in a landmark win for the commercial real estate industry, the Supreme Judicial Court (SJC) of Massachusetts unanimously affirmed the Land Court’s dismissal in Sudbury v. MBTA , holding that the prior public use doctrine is inapplicable when land owned by a public entity is conveyed to a private entity for a different use.

In September of 2019, NAIOP filed an amicus brief with the Real Estate Bar Association urging the SJC to uphold the Land Court’s determination that the state’s “prior public use doctrine” did not apply in this case. Such a requirement would have a significant impact on the ability of any developer to acquire property or even property rights (like an easement) from a public entity (whether a municipality or state agency), resulting in a long, unpredictable and expensive process requiring legislative approval for any change of use in a public property deal.

In its decision, the SJC expressly pointed to NAIOP’s amicus brief, which cited several recent housing projects creating hundreds of units of affordable housing and additional public benefits. Today’s decision allows these and other critical public-private partnerships to continue, creating massive community benefits across the state.

NAIOP is pleased with the SJC’s ruling, and grateful to Jessica Kelly, Daniel C. Johnson, and Ron Ruth from NAIOP Gavel member firm Sherin & Lodgen, and to members of the NAIOP Amicus Brief Advisory Committee, for their work on behalf of the commercial real estate industry on this matter. 

Optimism Colors Shifting Views of Development Market

Biotech Could Benefit From Open Office Space

Written By: Colin A. Young

This article was originally published by The State House News on September 15, 2020.

SEPT. 15, 2020…..Commercial real estate and development experts said they are confident that the pandemic won’t spell the end of the development boom in and around Boston, but they said they are keeping their eyes on consumer and workforce trends that might reshape their industry.

During a virtual panel convened by NAOIP Massachusetts, the development pros said that while the COVID-19 pandemic slowed construction timelines and injected generous doses of uncertainty into the equation, development still has plenty of track in front of it in the Boston region.

“We operate between Boston and Washington, D.C., and I think that Boston is clearly the strongest market of those three and maybe the strongest market in the country,” Shawn Hurley, president of Marcus Partners said, referring to the Boston, New York City and Washington, D.C., markets. “It certainly seems that development in this market remains really strong and that our economy is more diversified than ever before. So we feel very good about the Boston market and how we’re positioned today, albeit in a very volatile world and as we enter what appears to be a potentially very volatile fall.”

Lauren O’Neil, senior managing director at JLL Capital Markets, said she doesn’t foresee a persistent slowdown in development in the Boston area. After desirable long-term investment-grade tenant leases, she said development appears to be second on the investment strategy depth chart.

“I think the thesis is that we may be in a bit of a slowdown now, but in two to three years when a project is set to deliver it sets up nicely for the rebound in this current slowdown, I won’t go as far as to call it a recession. And so we’ve seen investors and debt capital alike gravitating towards new developments,” O’Neil said. “And in fact, it’s probably easier right now to capitalize on new ground-up development than it is a value-add office deal, for example, where you might have 70 percent occupancy and you’re trying to get to 90 percent occupancy in the near term. There’s just more conviction on what the world will look like in a couple years versus over the next six months.”

O’Neil said hotels and retail developments are struggling to get financed right now. Retail developments with a grocer and that have “a compelling story” might fare better, she said.

“But with the delinquency rate on existing loans in the mid-teens for those product types, it’s going to be a bit of a challenge to get those C-Suites on board with making any sort of aggressive bets on retail and hotel for the foreseeable future,” she said.

Chris Brown, CEO of construction management firm John Moriarty & Associates, said biotech remains one of the hottest sectors in the marketplace right now and the “great need” for added research and lab space has not been diminished by the pandemic. At the same time, there’s “a little hesitancy” to commit to any deals involving traditional office space, given the uncertainties around the future of remote working and the return of most employees to the office.

“Biotech is probably the sector of the market that … will have the most traction moving forward,” he said.

Tamara Small, the CEO of NAIOP Massachusetts who moderated Tuesday’s discussion, asked Brown about converting office space to research or lab space, citing conversations she’s had with people who have suggested that “biotech is the new office.” Brown said his firm is working to “reposition” some office space at the Cambridgeside Galleria and has “a few other projects in the pipeline that look to take existing office space and potentially either add on to it or reposition it for biotech and lab space.”

“That seems to be one of the hottest sectors for us and the most interesting questions we get is in regards to that type of product as well,” he said.

O’Neil said converting office spaces to research or lab space for life sciences and biotech companies could help meet some of the demand for those spaces sooner than the pipeline of new construction could on its own.

“The demand from the tenants on the life science side was growing at an annual growth rate of a little over 8 percent and it’s projected to continue through 2023 at just over 7 percent, which if you look at the current 25.7 million square foot market, that means there’s demand for over 34 million square feet,” she said. “We’re about 3 million short of meeting that demand based on the current pipeline for 2023. Now, that generally includes only ground-up, brand new developments, so maybe the conversion factor will start to fill in some of that.”

The panel also took on the suburbs and the question of whether the pandemic, and the changes it has brought to commutes and daily life, is creating a time for the suburbs to shine and draw even more people out of urban cores. In July, real estate market analysts at the Warren Group said increases in sales in more rural parts of Massachusetts were “far in excess” of the state average.

“Cities are going to endure. The intrinsic qualities that brought everybody to them pre-COVID, we’re going to appreciate them all the more when this ends, and it will end. So we just envision a totally different kind of lifestyle returning when we’re through this,” Abe Menzin, a principal at the development firm Samuels & Associates, said. “In my more optimistic moments, I actually think that remote work options for people could actually enhance the vitality of cities. It could help shave the peaks off of some of the congestion issues that we’ve encountered, and could give people more flexibility in their lifestyle and make a livable city like Boston even more liveable.”

Kirk Sykes, a managing partner at Accordia Partners, is banking on people continuing to want to live in Boston but said aspects of two of his most significant projects aim to address concerns that the pandemic has highlighted. Sykes is involved in the plan to redevelop the site of the Boston State Hospital into a development with more than 360 housing units near Franklin Park and Mass. Audubon’s Boston Nature Center and Wildlife Sanctuary in Mattapan. He’s also part of the plan to convert the old Bayside Expo site in Dorchester into more than 1,000 units of housing, retail space, office space and more.

“We feel extremely blessed to have a 65-acre park, and the beach and the ocean in front of Bayside. And as such, I think those characteristics will play heavily into corporate relocations for campuses or even the decision to get on the train and go for five minutes to Kendall [Square] as opposed to being in Kendall,” he said. “So we’re designing in the desire to be in an environment that gives you the air, the light, the breath, the view that you might get in the suburbs, but getting it in a 20-minute bike ride, 30-minute walk or five-minute Uber/Lyft to the Financial District.”

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09/15/2020

COVID-19 Update: Governor Baker Extends Eviction Moratorium

Today, as expected, the Baker-Polito Administration announced that it will be extending the current eviction moratorium by 60-days, using emergency powers granted by Chapter 65 of the Acts of 2020, An Act Providing for a Moratorium on Evictions and Foreclosures During the COVID-19 Emergency. This Act suspends most residential and small business commercial evictions, as well as residential foreclosures. It does not relieve tenants or homeowners of their obligation to pay rent or make mortgage payments. The extension will expire at 11:59pm on October 17, 2020.  

As reported on Friday, Massachusetts currently has the highest unemployment rate in the nation. In addition, the additional $600 available in federal unemployment benefits is expected to expire at the end of the month. Today’s announcement comes in the wake of the filing of House Docket 5166/Senate Bill 2831, An Act to Guarantee Housing Stability During the COVID-19 Emergency and Recovery, which seeks to institute a blanket eviction moratorium for 12-months beyond the end of the March 10 state of emergency that is currently still in effect. NAIOP has joined a coalition of real estate groups in strongly opposing this legislation. If enacted, HD 5166/SB 2831 would paralyze the real estate industry in Massachusetts by instituting rent control practices and rent cancellation, exposing good faith property owners to 93A damages, and sealing the records of all renters, not just those impacted by COVID-19.  

NAIOP is in constant communication with the Administration and Legislative Leaders on this issue and we continue to work with a subcommittee of attorneys and owners on eviction policies and legislation. If you or a member of your firm would like to share your experience with this moratorium, please reach out to CEO Tamara Small or Government Affairs Associate Anastasia Nicolaou.

COVID-19 Update: Governor Baker Announces Phase 3 Start Date, Amends E.O. Tolling State Permits; SJC Releases Updated Operations Order; DPU Begins Energy Relief Plan for C&I Customers; MBTA Announces Flex Pass Pilot

Governor Baker Announces Phase 3 Start Date

Today Governor Baker announced that Phase 3 will begin on Monday, July 6. While Phase 3 is anticipated to be in place until there is an effective treatment or vaccine for COVID-19, Governor Baker indicated that Phase 3 will be implemented in two steps.

Businesses allowed to reopen at this point in Phase 3 include but are not limited to:

  • Fitness Centers and Health Clubs
  • Museums and Aquariums
  • Movie Theaters and Performance Halls (at limited capacity)
  • Casinos (with additional minimum protocols set by the Massachusetts Gaming Commission)

Additionally, the Baker-Polito Administration has updated the guidance related to gatherings. The new guidance related to indoor gatherings will allow eight people per 1000SF, with a maximum of 25 people. Outdoor enclosed gatherings will be limited to 25% of the capacity, with a maximum of 100 people. This updated guidance will be effective Monday, July 6, except for the City of Boston, where it will be implemented Monday, July 13. For all guidance, orders and updates related to the Commonwealth’s reopening plan please visit: www.mass.gov/reopening

Governor Baker Amends State Permit Tolling Order

This morning, Governor Baker signed an Executive Order rescinding and replacing his March 26 Order to suspend relevant permitting deadlines and extend out the validity of state permits.

Importantly, this updated order addressed NAIOP’s significant concerns with the previous order’s appeals language. In the updated order, any individual whose right to appeal would have expired between March 10, 2020 and July 1, 2020 shall have until August 10, 2020 to proceed with their appeal. Any person whose right to appeal expires after July 1, 2020 will be held to the regular or statutory deadline, or by August 10, 2020, whichever is later.

NAIOP advocated strongly for this Executive Order given the extraordinary impact of the previous order on projects throughout the Commonwealth, and we were pleased to see our concerns addressed in the final language. A huge thank you to the NAIOP members who provided their expertise and insight throughout this process.

SJC Releases Updated Order Regarding Court Operations

On June 24, the Massachusetts Supreme Judicial Court (SJC) issued an order further staying certain hearings and trials and limiting court house access until at least July 13, 2020. In addition, the order affirmed that there will be no further extensions of deadlines or civil statutes of limitations beyond June 30, 2020, “unless there is a new surge in COVID-19 cases in the Commonwealth and the SJC determines a new or extended tolling period is needed) and that appeal periods on local permits will begin to run on July 1, 2020.

DPU Begins Energy Relief Plan for Commercial and Industrial Customers

On June 26, the Massachusetts Department of Public Utilities (DPU) approved the commencement of a program designed to assist companies that have fallen into arrears on gas or electricity payments during the COVID-19 pandemic. Full implementation of the program will begin after the March 10 State of Emergency is lifted and current customer protections expire. The Customer Outreach Plan will consist of four phases. You can read the full order by clicking here. Any company having trouble paying their electric or gas bills due to COVID-19 should contact their distribution company for further information.

MBTA Announces Five-Day Flex Pass Pilot for Commuter Rail mTicket

Yesterday, July 1, the MBTA began the new Five-day Flex Pass on mTicket pilot, a program designed to allow greater flexibility for commuter rail passengers as employers and employees explore staggered schedules and telework policies due to the COVID-19 pandemic. The pilot will take place from July 1 – September 30, 2020 and is only available within the mTicket app. Once purchased, the Flex Pass provides five one-day passes that can be used at any time in a 30-day period. This pass, available for all zones and interzones, is a 10% discount when compared to five round-trip tickets.

CRE Must Do More to Ensure Diversity, Equity and Inclusion: Now Is the Time to Listen, Learn – and Act

The below op-ed was originally published in Banker and Tradesman on June 28, 2020

Now is a pivotal moment in history where society’s attention is finally focused on what we have collectively ignored for far too long – hundreds of years of brutality, racism and inequity throughout the United States of America. While COVID-19 has pushed us into unusual and unprecedented times, the systemic issues being protested were with us long before the pandemic.  

As an industry, commercial real estate is predominantly white and male. While steps have been made in recent years to begin to address this, more must be done. The collective voice of our industry is strong – and must be used to amplify voices that are not heard. It is incumbent upon industry leaders to bring attention to these injustices and to commit to real change for this critical sector of the economy.  

NAIOP Massachusetts, The Commercial Real Estate Development Association, applauds the peaceful protests that have occurred around the country and here in the commonwealth. Diversity, equity and inclusion are a priority for our organization and our leadership, but we recognize that we can and will do more to advance change across the industry.  

Small incremental change is no longer enough. Real change will happen when all companies – and senior leadership – commit to creating a more diverse and inclusive industry. It will not happen overnight, but the industry must be unified in making diversity, equity and inclusion a priority. 

What Must Be Done 

NAIOP urges the professionals and companies in the commercial real estate industry to start with the following action steps. 

Listen and learn. Business leaders like to think they have all the answers. However, now is a time to listen, learn and acknowledge how deeply embedded racism is in the United States. This does not mean asking the Black, Indigenous and People of Color (BIPOC) in your company for their advice – seek out professionals who specialize in this space and commit to being an active part of any company dialogue. Internalize what you learn and address it in your professional and personal interactions. 

Engage leadership. Change must come from the top. While human resources professionals are an important piece of this work, hiring BIPOC is just one piece of the puzzle. In order for the industry to diversify itself from entry-level positions to the C-suite, and change the culture, company leadership must be at the table, advocating for BIPOC employee success and committing to long term change. 

Support MWBE businesses and the organizations that empower them. After too many years of hearing that there were no people of color in commercial real estate, Dave Madan created the Builders of Color Coalition (BCC). It convenes minority real estate professionals in Greater Boston’s building sector to leverage access to development projects. Its 500 members include developers, investors, architects, attorneys, bankers, contractors and brokers working across a wide range of firms, from family-owned enterprises to multinational companies. The Black Economic Council of Massachusetts, also known as BECMA, led by Segun Idowu works to advance the economic well-being of Black businesses, organizations that serve the Black community and Black residents of Massachusetts. These organizations are critical to the success of businesses of color and will help the commercial real estate industry to create more diverse teams.  

These are just two examples of organizations that are working to address serious inequities in companies across Massachusetts. Seek out organizations, community groups and change-makers who have been working in this space for years and invite them to the table as you begin these conversations.  

Hold Yourself Accountable 

Create a career pathway for diverse talent. Talent recruitment programs designed to introduce high school and college students of color to commercial real estate are essential. The Commercial Real Estate Success Training (CREST) Program is a comprehensive initiative to support commercial real estate companies in their commitment to attract underrepresented college students of color and women to the industry through summer internships. The program, now in its fourth year, has placed close to one hundred students in internships and led to career placements in the industry.  

With broader industry support, more students can be placed in these internships. NAIOP is encouraging its members to support CREST by hosting an intern or committing to a financial contribution that will allow the program to expand. The Real Estate Exchange (REEX) Summer Program, sponsored by REEC, is a unique 10-day, academic-intensive experience for high school students created to expose teens of color to top-tier universities and career opportunities in business, entrepreneurship and commercial real estate. NAIOP is proud to support REEX and CREST and we will continue to urge members to seek out programs that target equity and inclusion and implement them. 

Be accountable. You can’t manage what you don’t measure. Create diversity metrics, set hiring goals and update them regularly. While numbers are important, they do not matter if the culture is not inclusive and supportive. Make both a priority – and hold yourself accountable for their success. 

This is by no means a comprehensive list of action items for the industry. These are simply near-term steps that should be the minimum requirement for all commercial real estate firms. In the coming months, NAIOP will be working with a subcommittee of its board of directors and a coalition of real estate trade groups to identify and advance further opportunities for change. We do not have all the answers, but we are committed to learning, listening and acting to create a more diverse, equitable and inclusive industry. 

Tamara Small is CEO and Reesa Fischer is executive director of NAIOP Massachusetts – The Commercial Real Estate Development Association.