climate change continues to threaten homes, businesses, and infrastructure,
Massachusetts’ coastal communities
will need flexibility to properly implement their coastal resiliency plans. Many
of these plans, including the Climate Ready Boston initiative, will require the
use of fill to protect the City against the impacts of rising sea levels
and climate change. Such projects could include berms, waterfront parks, and
seawalls. S.430 provides a
framework for these critically important projects to be reviewed and approved.
laws and regulations, including the Wetlands Protection Act, were written
decades ago and did not anticipate the potential impacts of sea level rise, nor
the range of solutions that might be required to reduce flood risk,” testified
Kruel. “As noted in the October 2018 Coastal
Resilience Solutions for South Boston report, to be able to implement
proposed resiliency measures, some existing regulations and permitting
requirements may need modification to consider the impacts of sea level rise
and flood protection projects. In the same vein, Bill S.430 is intended to prevent
provisions of the WPA and 310 CMR 10 from inhibiting the construction of
coastal resiliency projects.”
“Coastal municipalities in the Commonwealth must be given the tools and resources they need to implement their coastal resiliency plans,” said Small. “We believe that the flexibility this bill provides allows for the public and private sectors to work together to protect communities from the impacts of climate change.”
NAIOP believes that S. 430 is a critical component to the Commonwealth’s climate resiliency efforts and will continue to advocate for the passage of this legislation.
This post was written by Mike Hoban of Hoban Communications.
years ago, when NAIOP Massachusetts launched its first ‘Women of Influence
Luncheon’, the commercial real estate industry in Boston (and NAIOP) looked pretty much like the floor
of the U.S. Senate – approximately 10 percent women with few people of color.
Today, the Boston CRE industry still very much resembles the Senate, but given
that the number of women in that chamber has grown to 25 percent and people of
color now constitute 10 percent of Senators, it is clearly a step in the right
direction for both constituencies. For NAIOP (whose membership is now 27
percent women), that change has been reflected in leadership as well, with 20
of the 49 (40 percent) members on the board of directors for the 1,650 member
organization are either women or people of color.
Last week, NAIOP again held its annual Women of Influence luncheon, hosted at the home office of Nutter McClennen & Fish, LLP in the Seaport. The sold out event attracted nearly 200 (mostly women) participants, and its theme, “Changing the Game for Women in Commercial Real Estate,” reflected just how much the conversation around women in the industry has changed in the last decade. “This is our tenth anniversary and we wanted to change things up,” said Reesa Fischer, executive director of NAIOP Massachusetts. “This is no longer about seeing what your career path is and how you get there. It’s about women providing opportunities for other women and strategies for achieving equitable workplaces.”
told the gathering that changing the workplace dynamic is not about just
working harder or “leaning in more” – which has long been the go-to strategy
for professional women in the workplace. Instead, she says, “We have to get
real about what we’re facing, and we also have get real that blaming and
shaming of men and trying to ‘fix’ them does not work. What does work is
understanding where that systemic bias is and creating a new, more efficient
and equitable status quo where everyone can thrive.”
emphasized the importance of mentorship and sponsorship for women, particularly
those just entering the field. She joined CREW Boston (then NEWiRE) nearly two
decades ago, and participated in a program that paired her with a female mentor
in Dallas. The two worked together for a year on a development plan that was
practical and “intentional about where I was going to go and how I was going to
get there,” said Cohen. The mentor also stressed the importance of overcoming
fears around networking, a skill which eventually led to her assuming the role
of president of both CREW and NAIOP at different points in her career. And she
still talks to her mentor on a monthly basis. “It’s been hugely beneficial to
get advice and an outside opinion to help me not only to navigate, but to keep
me challenging myself to keep growing,” said Cohen.
addition to mentors, panelists discussed the importance of having advocates
within the industry – both male and female – to support and champion them as
difference makers. Barrière, who is African-American, said that due to the lack
of black women in senior leadership positions in commercial real estate, there
is a shortage of available mentors for her, so she seeks out advocates instead.
“And the difference for me is, ‘Who is going to walk into the room when I’m not
there and talk about what great work I did?’ A mentor is going to talk to me
about how to overcome situations, and that’s a private conversation. That is
coaching and that is guidance. An advocate is going to walk into the room when
I’m not there and say, ‘This person has earned a shot. Their work is great and
they need to be promoted or they need to be put on this project’.”
added that women can become advocates for other women by practicing “echoing”
during meetings. “One thing I was taught by Kristin (Blount, Collier executive
VP/partner) was that we need to echo for one another,” she said. “When you’re
not the only woman in the room, and you do have a good idea, it’s not always
acknowledged, unfortunately. So what is helpful to your other female colleagues
is just echoing what they’ve said if you do think it’s a good idea. And the
more that we can do that, the more we have each other’s backs, and it can go a
long way towards helping all of us.”
of the difficulties for many professional women in the workplace, said Fletcher,
is overcoming “imposter syndrome” – the belief that one is inadequate despite ample
evidence to the contrary. Often fueled by perfectionism, Fletcher’s research
indicates that imposter syndrome is three times more likely to be experienced
by women than men, and seven times more likely by women of color. Multiple
panelists shared that despite their track records of success (including being
included on the prestigious NAIOP panel) they can still experience those feelings
of inadequacy in the workplace.
suggested that the best way to overcome imposter syndrome is by “silencing it,
calling it out, and just saying to (oneself), ‘If I was invited into this room,
then I belong here,’ and leave it at that. Move forward from there without
questioning that fact. On a level playing field, mindset and tenacity will win
Ng said the key to succeeding in the environment from an external standpoint is focusing on what really matters to the task at hand – and always bringing the conversation back to the deal. “You’ll get looked at differently. Trust me,” said Ng. “As someone who’s trained as an architect, is a woman and Chinese, I bring diversity to that room no matter what, and that’s my value-add. Call it out. Humor helps enormously, at least in my case, but at the end of the day, what’s going to get you the level of respect is going back to the point of, ‘this is a better solution because it generates ‘X’ return’.”
and Ng both emphasized that while there are disadvantages to being a women or
person of color in the industry, there are also a number of positives.
Vecchione said that she focuses a lot more on the advantages because it’s what
she can control, and reminded the audience that “we all have the ability to
stand out in a crowd and create a brand for ourselves.” Ng suggested that one
way to distinguish yourself from the pack was to carve out a niche. In her case,
it was to become expert in cross-border tax implications for real estate
acquisitions and dispositions. She told the audience that it was easier for her
establish a level of confidence regarding expertise about cross border
transactions, “because I look different, even though I’ve lived here for 25
years,” she joked, and encouraged the audience to “take what is sometime
perceived as differences – I wouldn’t call them disadvantages – and ask
yourself if that can become your niche.”
the CRE industry and society as a whole has a long way to go in terms of equity
along race and gender lines, Cohen sees a good deal of “forward progress” in
commercial real estate. When she began her career with Samuels 17 years ago,
she was often the only women in the room. Currently she is working on a
development project with Harvard University where nearly all of the people in
leadership positions are women. “If I can think of the future work that we have
in front of us, it’s getting more women in the room, into that very close
circle, who are making decisions, particularly hiring decisions – and I think
that’s the important one that still needs to happen – but I think there’s been
a lot of progress,” said Cohen.
At first glance, it might seem like a simple courtroom showdown between the MBTA and the Town of Sudbury over an underground power line.
But to the state’s major commercial real estate trade group, the fight that played out at the Supreme Judicial Court on Tuesday is about much more.
NAIOP Massachusetts isn’t a party to the case. But it did weigh in — on the side of the Massachusetts Bay Transportation Authority and utility company Eversource — through a friend-of-the-court brief.
The reason? Should the state’s highest court side with the town, NAOIP worries that transfers of publicly owned properties across the state could grind to a halt.
To get this far in its appeal, the town homed in on the state’s “prior public use doctrine” — a common-law understanding that land already devoted to one public use can’t be changed to a different one without state legislation. A Land Court judge ruled in 2018 that the doctrine didn’t apply in the Sudbury case, because the land would be leased for a private use. The town appealed, and the SJC decided to take up the issue.
George Pucci, a lawyer for Sudbury, argued Tuesday that this is an unusual case, one that would not open the floodgates. He noted that much of the right-of-way had once been acquired by eminent domain for transportation purposes.
But the potential broader impact was on the minds of the justices, as their line of questioning made evident.
NAIOP got involved after the SJC put out a call for input in May. Of particular concern to the trade group: The judges said they wanted to review whether the public-use doctrine should be in effect for transfers of property that would lead to private uses.
That request didn’t come out of left field. Pucci, in his initial appeals brief, argued it wouldn’t make sense to prohibit the transfer to an inconsistent public use while allowing the sale for an inconsistent private use. This, he wrote, would defeat the purpose of the doctrine: to protect public land from being converted to a different use without legislative approval.
Words like those can strike fear in the heart of any developer. Tamara Small, NAIOP’s chief executive, says a mandatory trip to the Legislature would open up a whole new layer of uncertainty and expense for public-private partnerships. Begging on Beacon Hill would bog down the development process, the mere prospect preventing many deals from happening in the first place.
In its brief, NAIOP offered a smattering of examples to emphasize some of these partnerships’ public benefits: an apartment complex in Chinatown with more than two dozen affordable units, clean energy from solar panels that dot state land along the Massachusetts Turnpike and other highways, the pending Polar Park stadium that will be built on city-owned property for the soon-to-be Worcester Red Sox.
What about Eversource? What public benefits would the electric utility offer with its deal? The company says its 9-mile Sudbury-to-Hudson line, mostly in a rail corridor, would bring nearly $9.4 million in lease payments to the T over 20 years. The line would help improve grid reliability in Greater Boston, with a side benefit of allowing a rail trail to be built along the stretch.
To the Sudbury town officials who authorized the litigation, these benefits don’t seem worth the adverse environmental impacts, such as damage to wetlands and wildlife habitats along the corridor.
Jessica Gray Kelly, NAIOP’s lawyer, says her client is agnostic on the fate of that project. But the association’s members do worry that the effects could ripple far and wide if the court decides legislative approval is needed for any change of use in a public property deal, not just for those in which control would be transferred to another public agency.
It would be a new world for real estate development in the state. Kelly demurs when asked how she thinks the court will react. But NAIOP’s insertion into this seemingly local fight shows the trade group is not taking any chances.
The following column was published in the September 15 edition of Banker & Tradesman.
With the 2019–2020 Massachusetts legislative
session approaching the halfway point, it is a good time to take
stock of where things stand and what legislative proposals could affect
the commercial real estate industry.
The current legislative session began in
January 2019 and will conclude on July 31, 2020. With more than
7,000 bills filed to date – and more
expected – Massachusetts legislators have the ability
to make dramatic changes affecting every aspect of society.
As legislators consider proposals affecting commercial real
estate and economic development, in general, they must also
consider the economy for the year
ahead. The Greater Boston market is currently viewed
as a stable market for investment; and while vacancy and
unemployment rates remain low, warning signs of a
coming economic downturn are on the horizon.
The pace of economic growth in Massachusetts has
not kept pace with that of the nation over the past year. In the
second quarter of 2019, Massachusetts GDP grew at a 1.4 percent
annualized rate, while U.S. GDP grew at a 2.1 percent rate. In
addition, in August, the 10-year Treasury yields fell below the rate on 2-year
notes for the first time since 2007. This inverted yield curve has been an
indicator of coming recessions for the past 50
This, combined with escalating trade wars and
geopolitical uncertainty, highlight the need for careful consideration of
the potential statewide impact of legislative proposals.
While it is nearly impossible to predict how the session
will end, legislative leaders have expressed an interest in tackling some
significant policy issues including tax revenue, housing and
climate change. Given the impact these issues will have on commercial real
estate, the details matter.
Transfer Taxes Revenue has been a popular word on Beacon Hill in recent months, with numerous transfer tax proposals filed. The bills all seek to create revenue for a variety of funding priorities, including affordable housing, climate change, education and transportation.
However, the transfer tax is not the best approach
to adequately address these issues, particularly since the revenue will be
pegged to the real estate market.
With anticipated market instability, these
taxes many not serve as a stable funding source. If passed,
they will increase the cost of housing and commercial development, which has
the potential for negative ripple effects throughout the economy.
Climate Change Given the environmental, public health, safety and economic development threat posed by climate change, legislation on this issue is expected this session.
The House passed H. 3846, An Act Relative
to GreenWorks, in July. It is a $1.3 billion energy and
resiliency bill designed to offset climate change, creating a new grant program
for cities and towns throughout Massachusetts to fund projects focused on
climate resiliency. It is modeled after the
successful MassWorks infrastructure program and builds on the
Environmental Bond Bill passed in 2018.
Climate change affects all residents of
the commonwealth. Therefore, the burden for addressing this issue should
Unlike transfer tax proposals, which only target a subset of
the population and may drive up the cost of
housing, GreenWorks is a far more equitable approach and should be a
top priority for the legislature.
Housing Finally, one of the most significant economic issues in need of legislative action is the current housing crisis.
The supply of housing is not keeping up with demand, which
in turn is driving up rents and home sale prices. An Act to Promote
Housing Choices (H.3507) provides a clear framework for cities and
town to encourage new housing production.
The bill, which has the support of the Massachusetts
Municipal Association, the real estate industry, affordable housing groups like
CHAPA and business leaders, allows cities and towns to adopt zoning best
practices by a simple majority vote, rather than the current two-thirds
Whether it’s senior housing or multifamily housing,
countless units are never built because of the need for a supermajority
vote. Given the broad support for this bill, the legislature needs to act
on this legislation in advance of spring town meetings,
where countless projects will be up for review at the local
While these are only a few of the issues expected to
move this session, it’s clear that decisions made at the State
House over the next 10 months will have a significant
impact on the real estate industry for years to come. NAIOP
will continue to work with legislators to ensure that the economic impacts
of legislation are considered and that Massachusetts remains a great
place to live and work.
Massachusetts Supreme Judicial Court (SJC) affirmed
the Superior Court’s decision in favor of the Boston Planning and Development
Agency (BPDA), formerly known as the Boston Redevelopment Authority (BRA), in
the case of Joseph P. Marchese vs. Boston Redevelopment Authority. The
Court determined that the plaintiff did not have standing to challenge the
BPDA’s actions in this case.
In April, NAIOP submitted an amicus brief in
support of the BPDA,
drafted by law firm WilmerHale. NAIOP chose to pursue this opportunity
because the case addresses the “demonstrations clause” of the urban renewal
statute, which is a critical economic development tool, often used for
artistic, cultural and historical preservation in the City of Boston.
“We are pleased with today’s decision,” said Tamara Small, CEO of NAIOP Massachusetts. “This case was closely watched by the industry and the decision will allow the BPDA to continue to leverage important public-private partnerships to positively impact the City’s communities and public spaces.”
NAIOP files amicus briefs from time to time in cases that may have far reaching implications for real estate development in the Commonwealth.
Very special thanks to the team at WilmerHale including Michael Bongiorno, Julia Harvey, Arjun Jaikumar, Matthew Costello, and Keith Barnett. Additional thanks to the NAIOP Amicus Brief Advisory Committee for their in-depth review and input on this issue.
Every year, NAIOP takes its members on a walking tour that explores the latest real estate development projects in a specific neighborhood. This year, NAIOP members toured the Seaport, where they had the chance to see recently opened buildings and get an invaluable sneak peek of what’s to come. A still evolving neighborhood, the Seaport has seen incredible investment in everything from office and lab space, to residences along the water, and innovative retail. The district is 23-acres of mixed-use zoning, including 10 acres of open space, and has become a new hub of commerce, culture, and innovation in the City of Boston.
The sold-out walking tour kicked off at the Icon Theater. The group got a lesson on the history of the neighborhood from David Martel of Newmark Knight Frank, and an important reminder that what is happening in the Seaport now is the result of over 30 years of work from visionaries, investors, and developers who came together to transform the Seaport into what it is today. Yanni Tsipis of WS Development discussed the billions of dollars of public investment, including the Harbor cleanup and Big Dig, that catalyzed the growth of the Seaport. He also discussed his firm’s massive, transformative development, Seaport Square, including the forthcoming 88 Seaport, a mixed-use retail and office project, and 111 Harbor Way, future home to Amazon.
121 Seaport Boulevard
The group then headed to 121 Seaport, home to PTC’s global headquarters and Alexion Pharmaceuticals. Developed by Skanska, the project officially opened earlier this year. Carolyn Desmond of Skanska discussed the development of this 17-story, 450,000 square foot elliptical tower, which included the discovery of a long-buried ship during construction! Marc Margulies of MPA then covered the cutting-edge design of the PTC headquarters. The building’s unique shape provided increased opportunities to build out a truly unique space for the offices, providing optimal light and functionality. Attendees then toured the PTC office, including its incredible rooftop terrace.
Outside of 121 Seaport, Martin Zogran from Sasaki discussed his firm’s work to create an expansive public realm program, which weaves together a unique fabric of residences, offices, shops, restaurants, civic uses, and hotels.The master plan is designed to encourage walkability and alternative mobility options with 39% of the total project area being exclusively devoted to pedestrian-only open space. As an example, a tree-lined pedestrian path, Harbor Way, punctuated by plazas and amenity spaces serves as the district’s cultural corridor and north-south connector between the Institute of Contemporary Art (ICA) and the Boston Convention and Exhibition Center (BCEC). Their work will bring a diverse mix of uses, pedestrian-oriented public space, and greater coherence and connectivity to the Seaport.
A quick walk across the street brought attendees to EchelonSeaport. Developer Michael Schumacher of The Cottonwood Group and Phil Casey of CBT gave an overview of this 1.33 million square foot community, featuring two condominium towers and one multifamily tower with 60,000 square feet of indoor and outdoor residential amenity spaces. The design, focused on the intersection of art and commerce through the lens of luxury hospitality, will include significant public space and promises to be a striking addition to the Boston skyline. With amenities for both towers ranging from pools to private dining rooms, EchelonSeaport promises to provide residents with much more than just a place to live.
The St. Regis Residences, Boston
Attendees then went to the former Whiskey Priest location, which will soon be the St. Regis Residences, Boston. Sean O’Grady of Cronin Development and Rebecca Eriksen of Elkus Manfredi Architects discussed the project, which broke ground in Fall 2018. The project faced a unique caveat in initial design – the property borders the Harbor on two sides. Rising to the challenge, the latest residential waterfront development in the Seaport promises to evoke nautical themes in every aspect of its architecture and décor. Currently slated to open in early 2021, the 114 residences will provide a highly curated experience, featuring signature design, dramatic views, an 8,000+ square foot bistro with additional terrace space, on-site spa, and other luxury amenities.
From there attendees went to the Seaport’s Fort Point Channel, where Jamie Carlin and Paul Connolly of Crosspoint Associates discussed the future of Thomson Place – a renovation and reinvigoration of one of the area’s historic warehouses. Scheduled to open in Fall 2019, the project will include office, retail and mixed-use space. Currently home to Trillium Brewing, Bartaco, and a new public plaza, the project brings new energy to the neighborhood, while preserving its historic character.
The group wrapped up the day at The Grand for a networking cocktail hour sponsored by WS Development. Attendees had the opportunity to chat with brokers, project teams and each other to wrap up a successful tour with a well-deserved cocktail in hand. Plans are already underway for next year’s tour. We look forward to seeing you then!
On Tuesday, July 9 NAIOP CEO Tamara Small testified before the Joint Committee on Telecommunications, Utilities and Cable in support of NAIOP bill H. 2861, An Act to Encourage Predictability in Utility Connections. Introduced by Representative Thomas Golden of Lowell, the legislation is targeted at addressing the frustrations the commercial real estate sector has expressed for years regarding the lack of transparency and predictability for utility connections at development projects. If passed, the bill will ensure that commercial customers, as well as new connections and relocations of existing connections, are included in the service quality standards.
Currently, when utilities request a rate increase, they are
“graded” based on how they perform under the Department of Public Utilities’
Service Quality Standards. Customer
satisfaction, response times for service outages, and repairs and maintenance
are some of the criteria considered under M.G.L. Chapter 164 §1E. However,
utilities are only judged based on their performance with residential
customers, not commercial customers. In
addition, only existing connections, and not new connections, are included in
the service quality standards.
“As we saw with the gas moratorium and lockout last fall, new
utility connections are absolutely critical for economic growth,” testified
Small. “Small business owners could not open their doors, companies could not
relocate to new office space, and tenants who had signed leases for new
apartments did not have a place to call home.”
believes that by including commercial projects, the relocation of existing
connections, and new connections in the review process, we will have greater
transparency and accountability in the regulation of our utilities statewide. NAIOP
will continue to advocate for the passage of this bill so that future real
estate development projects could benefit from the proposed change.