Category Archives: Local News

2013 Bus Tour Recap: The Suburban Transformation

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The following blog post was submitted by David Fleming, Principal at PACE Communications Group, a marketing and PR firm that specializes in commercial real estate and retail.Elisif_20130501_0150

Three signs that spring has finally arrived in Boston: 1) green grass on the Esplanade, 2) the Red Sox back at Fenway Park, and 3) NAIOP MA’s Annual Bus Tour. The 11th edition of the tour took place on Wednesday as more than 250 people aboard five buses toured properties along what is suddenly one of the hottest stretches in commercial real estate in the region: the Route 128 Corridor from Needham to Lynnfield. Here’s a summary:

Elisif_20130501_0115Kickoff at Needham Crossing

  • Needham’s Economic Development Director Devra Bailin, discussed efforts to rebrand the former New England Business Center as Needham Crossing
  • Justin Krebs and Mark Roopenian described two of Normandy Real Estate Partners’ projects along the route:
    • Center 128, which will redevelop Needham’s former New England Business Center into an 825,000-square-foot “super-park,” including a Marriott Residence Inn Hotel
    • Station at Riverside, which will transform MBTA’s Riverside Station into a mixed-use development featuring 295 apartments, a 10-story 225,000 square foot office building, and a 20,000 square foot retail village
    • Mike Wilcox of The Bulfinch Companies discussed development at Needham Crossing and the branding and leasing efforts at Atrium Center. Wilcox concluded with an exciting Atrium Center video that you can see here.
    • In his market overview, Jeremy Grossman of CBRE/Grossman Retail Advisors noted the “flight to quality” among retailers, New Urbanism, the continued expansion of restaurants, the intensifying battle among grocers, and the strengthening of regional markets such as Chestnut Hill, Lynnfield, and Northborough as key trends

Elisif_20130501_0215Bus Tour Highlights

Six tour buses, escorted by members of the MA State Police, traveled along Route 128 beginning in the Needham/Newton area and ending in Lynnfield. Here are a few highlights:

 

Elisif_20130501_0268Lunch and Learn at MarketStreet Lynnfield

The tour stopped in Lynnfield for lunch at MarketStreet Lynnfield, a 680,000 square foot mixed-use development currently under construction. Inside a space that will become a Shoe Market store, WS Development’s Tom DeSimone and National Development’s Ted Tye shared details of the joint venture scheduled to open in August 2013.

When complete, MarketStreet Lynnfield will include 395,000 square feet of shops and restaurants, 80,000 square feet of office space, 180 residential apartments known as Arborpoint at MarketStreet, and the 9-hole King Rail Reserve golf course.

Elisif_20130501_0282Voices on Tour

I caught up with a few people on tour. Here’s what they had to say:

  • Tom DeSimone, partner, WS Development: “There’s no better way to understand real estate than to actually be there. The NAIOP Bus Tour gets you closer to the real estate by providing an introduction. Then you can go back and look at whatever may have peaked your interest.”
  • Ted Tye, managing partner, National Development: “It’s great to people out here having a nice day, getting out from behind their desks, and seeing some projects that are being built. And, it’s incredible that in 2013 that we actually have things being built.”
  • David Chilinski, co-founder and president, PCA: “The best part of the NAIOP Bus Tour is that you really get a sense of what’s happening and, importantly, what’s new in the marketplace.  We all know the tried and true properties, but the tour lets you see new projects as well as cases where people are reinventing or adding to projects. That’s the importance of this tour.”
  • Sarah Walker Weatherbee, managing director, Keller Augusta: “You get a sense of history as well as what the future holds for the Boston-area markets like the ones we saw today. And, the networking that the Bus Tour enables is unique to NAIOP—that really makes the day exceptional.”


While here, please read David’s important post below about National Development’s Roseann Sdoia, who was seriously injured in the Boston Marathon bombings. David includes a link to Roseann’s Recovery Fund for those who wish to donate toward expenses for Roseann’s treatment and recovery.

Support One Fund, Support Boston

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OneFund
All of us at NAIOP Massachusetts are saddened by the tragic events that occurred at the Boston Marathon on April 15. Times like these make us realize that Boston is basically a small town – it seems like we are all either connected directly, or by one degree of separation, from someone hurt in Monday’s explosions.

Governor Patrick and Mayor Menino announced the creation of One Fund Boston, which was established to provide assistance to those who were directly impacted by the tragedy. The local business community, including several NAIOP members, immediately stepped up to support the fund. We encourage the commercial real estate industry to show its support. To learn more, or to make a contribution, visit http://onefundboston.org.

In addition, we’ve learned that Roseann Sdoia of National Development, a NAIOP Gavel Firm, was severely injured in the explosions. Her friend set up Roseann’s Recovery Fund, where you can donate towards her treatment and recovery expenses. Our thoughts are with Roseann and the many other victims hurt by this tragedy.

Optimism: the way to start your day

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This post was written by Kimberly Sherman, and originally appeared on the Nickerson PR blog, CheersLive!

On Thursday November 29, 2012, over 400 attendees gathered at the Seaport Hotel Boston for the NAIOP/SIOR Annual Market Forecast, one of the industry’s leading market forecasts. Nickerson PR was the sponsor of the much-anticipated event. “Being knowledgeable as a peer in the field, helps Nickerson PR to provide a better service to our clients – we want to be a knowledgeable business partner to every client – not just a vendor. It was very important to sponsor such an event,” said Lisa Nickerson, Principal of Nickerson PR and Board Member SIOR New England.

Barry Bluestone NAIOP.jpgBarry Bluestone, Dean, School of Public Policy &
Urban Affairs at Northeastern University

David Begelfer, CEO for NAIOP Massachusetts moderated the program. The Keynote speaker, Barry Bluestone, Dean, School of Public Policy & Urban Affairs at Northeastern University, offered an optimistic and timely economic snapshot of our local real estate market. Bluestone’s economic overview mostly centered on why we will return to a 0.2% growth rate. He outlined six things we haven’t paid enough attention to.

1. The demographic boon is over
2. The plateau in educational attainment
3. Increase in inequality
4. Globalization and outsourcing
5. Energy and environment
6. Twin deficits

In closing, Bluestone firmly stated that to avoid this path, we would need major innovation and investment for large-scale ideas. He reminded us that the good thing is the US has accomplished this before, so we should have the confidence that we can do it again.

NAIOP Panel.jpg

Some of Greater Boston’s most active real estate professionals presented an analysis of the Massachusetts commercial markets, with a special look at the office, industrial and capital markets. Panelists discussed the drivers and fundamentals behind 2012 statistics, including emerging trends in specific markets, new growth areas and a general outlook for the future. Among these market experts were:

The majority of attendees I spoke to were pleased to leave the event with a feeling of optimism. In the words of market expert panelist Petz, “Boston is hot, we are lucky to both live and work here.”

Some take-aways from NAIOP Forecast attendees:

“It’s always great to hear lots of optimism about the direction of the commercial real estate markets for 2013 and beyond. Absorption rates are increasing significantly throughout the region which bodes well for the CRE market for years to come.” Bud LaRosa, Chief Business Performance Officer, Tocci Building Companies

“It was refreshing to hear Barry Bluestone speak to overcoming the fiscal cliff and offer insight as to why there is plenty of good news ahead for the real estate market.” Merrill H. Diamond, Founding Partner of DIAMOND SINACORI, LLC and IGNITION Residential, LLC

“With 7,500 new multi-family units planned and Boston supporting the effort, it’s nice to be assured that Boston real estate is hot right now.” Markell Blount, Partner, Sparta Consulting Inc.

“I am happily surprised by the level of optimism expressed today. The last few events have been more doom and gloom, so I’ll take this news any day.” Mark Glasser, Principal, Packard Design

NAIOP Raises $151,500 for Heading Home

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This post was submitted by Marc Margulies, principal at Margulies Perruzzi Architects and president of Heading Home’s Board of Directors

On June 6th, NAIOP Massachusetts held its 24th Annual Charitable Golf Tournament to benefit Heading Home, raising $151,500 to support programs to end homelessness in Greater Boston. This record-breaking sum is the largest in the tournament’s history, bringing the total donated to Heading Home to more than $1.85 million. The commercial real estate community should be proud
that its steadfast commitment to Heading Home reaps real rewards for homeless families.

In 2011, Heading Home helped more than 2,000 homeless people in Greater Boston by providing them a place to call home and opportunities for self-sufficiency. Two-hundred and fifty units of housing have been created since 2006, with 61 new units created in the past year alone.  More than 400 volunteers annually commit their time and energy to Heading Home, and the commercial real estate community provides a large number of those volunteers. The monies raised by NAIOP will continue to support Heading Home’s programs to end homelessness locally.

Andrew Hoar, president of CB Richard Ellis/New England and chair of the 2012 NAIOP Massachusetts Charitable Events Committee, led the effort to make this record-breaking donation possible. Andy has been on the Heading Home Board of Directors since 2007, and he, his wife, and his firm are longtime contributors to the organization. Andy’s efforts this year hit the fundraising goals out of the park!

Another ardent Heading Home supporter who deserves special recognition is NAIOP Massachusetts CEO, David Begelfer. David has been actively involved in the struggle to end homelessness for more than 24 years, and started the annual NAIOP golf tournament to support Heading Home. In 2010, David received the Bob Ray Partnership Award from the Massachusetts Housing and Shelter Alliance for his commitment to ending homelessness. His support of Heading Home, including serving on the organization’s Advisory Council, has been unwavering through the years.

Since the first NAIOP Golf Tournament that raised $5,000 for Heading Home, the commercial real estate industry has continued to come together to show support for homeless families and individuals. Thank you to NAIOP’s member volunteers, staff, and generous donors who helped to raise this record-breaking donation for Heading Home. It is only through their support that the tournament is able to raise funds needed to help Heading Home accomplish its goal of ending family homelessness.

View pictures from the event.

NAIOP Bus Tour: 10 Facts Learned on the Trial Run

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The following blog post was submitted by Duncan Gratton, Senior Managing Director, Principal at Cassidy Turley FHO.

This year marks the 10th Anniversary of NAIOP’s Bus Tour, and as the Vice President of the Bus Tour Committee, I had a hand in planning and designing it. The 2012 Bus Tour, What’s Big and Breaking in Greater Boston, is a fast-paced live market update on some of the most dynamic markets in the area, including Boston’s Seaport, Fenway, Longwood and Cambridge.

The actual date of the Bus Tour is May 2, but this week – along with Bus Tour Captains and NAIOP staff – I went on a dry run of the route. We saw a lot of projects breaking ground and learned several interesting facts from the knowledgeable Bus Tour Captains! Here are the ten I found most interesting:

  1. The largest private construction project in the US is located at Fan Pier. The Vertex buildings are 1,100,000 SF and $900,000,000!
  2. Three of the largest academic/medical clusters in the US are located in Boston. They are:MGH/Partners

    Longwood Medical/Harvard

    Boston Medical Center/Boston University

  3. Kendall Square in Cambridge was supposed to be the original site of NASA. After JFK was assassinated, Lyndon Johnson became President and being from Texas, he chose Houston as the new location.
  4. Boston University is one of the largest landlords in Back Bay/Fenway. They control over 1,000,000 SF of commercial and non-academic real estate.
  5. There are three new life science buildings under construction in Kendall Square (Pfizer, Novartis and Broad Institute) and two new office buildings (Biogen Idec). All are 100% leased.
  6. Rents in Kendall Square and the Seaport District have jumped over 10% in the last 12 months.
  7. New apartment construction is booming – at least six new projects are underway or about to start in Boston!
  8. New Balance has announced plans for four new buildings at Brighton Landing, including a new 250,000 SF world headquarters building. In addition, they are planning a 345,000 SF sports facility that will include a hockey rink and track.
  9. Harvard is constructing an ‘Innovation Lab’ in the former WGBH buildings on Western Avenue in Allston.
  10. Boston University has announced that construction will commence this summer on a new lacrosse stadium on Babcock Street, thanks in part to a $3,000,000 donation from New Balance.

I hope you will join us on May 2 to learn more about What’s Big and Breaking in Greater Boston. Get a sneak peek of what’s in store.

Lowell Richards: A Boston Leader & Visionary Who Will be Missed

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Lowell Richards, Chief Development Officer for the Massachusetts Port Authority, died suddenly this past weekend. This tragic loss is very hard to grasp for many of us that knew him as an energized, dedicated, well-liked advocate and friend, committed to public service throughout his life.

It is very difficult to know the extent of Lowell’s involvement in economic development in Boston and throughout the Commonwealth.  He was not a “grand-stander,” preferring to work quietly behind the scenes making things happen, giving others the spotlight. Lowell enjoyed solving problems, and in development and in politics, there are plenty. The advantages that Lowell brought to the table were his deep understanding of the complex political environment, a clear focus on the public policy objectives, a keen mind regarding finances, and the negotiation skills needed to close the deal.

Lowell graduated from Dartmouth College in 1969, earned a Master’s in City Planning from MIT in 1971, and a J.D. from Harvard Law School.  He began his distinguished career as a college intern at the Boston Redevelopment Authority.

Within Mayor Kevin White’s administration from 1976 to 1984, Lowell served as Collector-Treasurer, and then Deputy Mayor for Fiscal Affairs. (Just last week, he served as a part of the honor guard during the memorial services for Mayor White.)

Lowell’s private sector experience included senior responsibilities at Cabot, Cabot & Forbes, the commercial real estate development company based in Boston.

From 1994 to 1999, under Governor William Weld, Lowell served as Assistant Secretary for Capital Resources of the Executive Office of Administration and Finance, and then Chief Development Officer for the Commonwealth.

He joined Massport in 1999, where he ultimately became the agency’s Chief Development Officer. There, he was responsible for its agency-wide strategic and master planning activities, including the airports and the seaport, as well as Massport’s private commercial and residential real estate development in South Boston, East Boston, and Charlestown.

Under his direction, Massport received MEPA certification for the Commonwealth Flats Development Area (including the newly designated Boston Innovation District), authorizing development of over 3 million square feet of hotel, office, retail and residential development. During his tenure, construction commenced on over 3 million square feet of maritime industrial, commercial office and apartment development on Massport property leased to developers. He also directed third party development at Massport’s three airports.

Lowell had many friends who are now stunned by his departure.  It’s hard to imagine this city without him, but we are fortunate that he left an indelible mark on Boston.  His presence will remain with us as we travel through this great city each day.

Kevin White Made Boston the World Class City it is Today

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Kevin White, who served as Mayor of Boston for four terms from 1968 to 1984, died at his Boston home this past Friday, January 27th.

After leaving office, he was quoted saying, “I left the city a little better than I found it.” Truly, this was a spectacular understatement. The mayor stepped into office with big dreams, big plans, and the belief that Boston could become a great, world class city.

Kevin White built upon the renewals started by the previous two mayors, John B. Hynes and John Collins. But it was the revitalization of the historic Faneuil Hall Marketplace in 1976 that became the “tipping point” for the downtown’s and waterfront’s emergence as vibrant, mixed-use centers of activity.

Looking at the Marketplace today, it is hard to envision what it looked like before its redevelopment – rat infested, crumbling structures; with the highest and best use for two of the buildings being a flea market open on Sundays. When the project went looking for financing, all of the Boston banks showed their pessimism by refusing to participate at any amount.  It took the active role of Mayor White to help secure the financing in New York City (although, only under the condition that the redevelopment be phased to limit the risk.)

During his time in office, new developments sprung up, including towers in the financial district, a redeveloped waterfront, the massive Copley Place retail, office, and hotel complex, and the transformation of the Charlestown Navy Yard.

The Mayor attracted some of the brightest in Boston to be a part of his team to help create this transformation including, Barney Frank, Peter Meade, Lowell Richards, Fred Salvucci, Paul Grogan, Robert Kiley, and Micho Spring.

I will always remember walking through the Boston Garden one evening and running into the Mayor and his wife, Kathryn.  It was not difficult to see his love for his wife and his pride in his city. Mayor Kevin White will never be forgotten – his presence will always be with us, as we look upon our world class city.

Time for Change at Mass Historical Commission

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The spotlight story on the Massachusetts Historical Commission (MHC) appearing in the recent edition of MassINC’s CommonWealth magazine is not a surprise to anyone who has had to deal with this agency.

It is a shame that a well-respected, growing business like Meditech should have been treated in such a manner to cause them to question doing business in the Commonwealth.  But this goes beyond this one company, and the outrage should not be focused only on the resolution of this particular site-specific problem.

The problems include the lack of transparency throughout the permitting process, the lack of regulations and timelines relative to the review of sites listed on the MHC Inventory of Historic Places, and the purposely limited opportunities to meet with this agency.  MHC should begin by allowing full, convenient public access to all of its files, as most every other agency is required to provide. These issues must be addressed to provide for a fair and predictable system.

Without these changes, the MHC will continue to be viewed as a political tool, unaccountable to the general public.

Hank Spaulding in Memoriam

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The real estate industry lost an icon with the passing of Hank Spaulding this past week.  Even that statement does not do justice to the impact this man had on our region and our industry.

He was one of the many influential alumni from the master real estate development firm, Cabot, Cabot & Forbes that included Gerald Blakeley, Mort Zuckerman, Ed Linde, Moose Mansfeld, Don Chiofaro, Terry Considine, Arturo Gutierrez, and others. (NAIOP will be honoring Gerry Blakely and CC&F’s “offspring” at NAIOP’s Annual Meeting on Thursday, December 15.) He then went on to co-found Spaulding & Slye, one of the most prolific full service real estate companies.

His influence on the cityscape of this area was already established by then, but his influence around the world was set into motion with his establishment of the MIT Center for Real Estate that opened in 1984. Hank knew that our business was becoming more complex and required a broader understanding of the numerous components that went into creating housing and commercial spaces. What it needed was a graduate program designed to train real estate developers. The school has been a tremendous success educating real estate professionals from around the world.

Hank Spaulding gained the respect of everyone he ever dealt with through his generosity and wisdom. He will be missed by all of us who knew him.

MassINC Has Some Serious Fun – Menino Stars as The Godfather

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MassINC recently celebrated its 15th anniversary at the Kennedy Library with an evening of political humor (intentional humor, that is!) billed as “Serious Fun.”

I am a board member of this public policy think tank and I am very proud of the work that this organization has done through its research and its highly respected CommonWealth magazine. MassINC was built around the conviction that better outcomes would be achieved if policy makers and opinion leaders were armed with credible data and analysis about key issues surrounding quality of life in Massachusetts.

As the State House News Service described it, “The event was everything the Saint Patrick’s Day breakfast once was.” Leading political figures from yesterday and today all let their hair down and joked around at themselves and their peers.

You must watch the opening video parodying “The Godfather” with Mayor Menino.

MassINC President Greg Torres said it well,“We thought a lot about the tone of the political discourse these days. And we thought, maybe it was time to just take a break.Maybe it was time to step back and have a little fun at the expense of ourselves and everybody else in town.”

Congratulations to the MassINC team and its 15 years of success.  Massachusetts is a better place to live and work thanks to you!