Seaport by Foot: Walking Tour Recap

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.

Icon Theater

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.

Photo of 121 Seaport
Bruce T. Martin Photography 508-655-7557 btm@bruceTmartin.com 154 East Central St Natick MA 01760

Harbor Way

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.

Photo of Harbor Way

EchelonSeaport

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.

Rendering of EchelonSeaport

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.

Rendering of The St. Regis Residences, Boston

Thomson Place

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.

Rendering of Thomson Place

Networking

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!  

The Science of Success: Bus Tour Recap

This post was written by BLDUP and originally appeared on their site.

Now in its 16th year, the NAIOP bus tour took several hundred CRE professionals on an info-packed trip through Waltham, Watertown, Newton, and Needham last week. The theme of the tour, the science of success, highlighted the continued growth of the 128 corridor as a hub of innovation in both the tech and life science fields. With the strong talent pool coming out of the areas many top colleges and universities, companies look to Boston to plant their flag. However, with extremely limited availability in Cambridge and rents continuing to rise, Boston’s tech highway is a more affordable option. All of these employees also need housing options, spurring development in the multi-family sector. Despite a few hiccups along the way (I survived the fabled orange bus) it was another enjoyable and educational NAIOP program.

Highlights of the Tour

225 Wyman
As part of the Hobbs Brook Office Park, 225 Wyman will be the largest contiguous Class A office building along the Route 128 “technology belt”. Currently, demo is wrapping up on the site and construction is set to be complete in 2021. The building, designed by Gensler, will include both office and lab space and the “H” shape of the allows for many leasing configurations.

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A rendering of the upcoming project at 225 Wyman Street.

828-830 Winter Street
Many life science companies in the market for space, need it ASAP! Looking to fill this type of demand King Street Properties has been building lab buildings like 828 Winter Street on spec. 828 Winter, completed in August 2018, is outfitted with a full MEP structure and column spacing to allow for an 11ft lab bench. The King Street team also discussed their upcoming project, Nexus Allston at the Allston Innovation Center. Currently, under review with the City of Boston, the development would include 3 buildings to feature office/lab, retail, and residential space. King Street expects to complete permitting by the end of this year and have first units/space ready for occupancy in Q1 2022.

Gauge
Hilco has completely renovated this 1940s-era brick-and-beam structure to provide creative office and R&D development space. Historic features of the building including high ceilings with expansive windows, skylights, and exposed brick interior walls. Utilities throughout the project were upgraded and a fitness center added to meet modern tenant expectations.

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Bus tour attendees arrive at The Gauge in Waltham.

Elan Union Market
Developed and Managed by Greystar, this 282 unit project welcomed residents in June of last year and is currently wrapping up construction on the final residences. The luxury development features numerous amenities including an art gallery, pool, and resident lounge. The project is currently 55% occupied and 75% leased.

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One of the resident lounge areas at Elan Union Market in Watertown.

Kendrick
At The Kendrick in Needham, the development team at Toll Brothers set out to create a not-so-typical apartment community. Their goal was to design a building with a high-end residential hotel feel that “made you look” with unique artwork, amenities, and finishes. Amenities at the Kendrick include an outdoor beer garden, fitness center with climbing walls, and a revolutionary coffee maker that allows residents to order coffee from their phones (said to cost around $10,000!).

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One of the many unique common spaces at The Kendrick.

Northland Newton Development
Our final stop of the day was at the historic Saco-Pettee Mill building to hear more about Northland’s vision to create a vibrant live, work, play gateway in Newton’s Upper Falls.  The proposed project calls for 800 residential units, 173,000 square feet of office space, and 115,000 square feet of retail. 9.8 acres of open space within the development including 7 parks will provide ample green space for residents and visitors and a new streetscape will allow for easy access for pedestrians and bicyclists. By converting an aging, obsolete industrial complex into a dynamic community, Northland aims to promote smart growth within Newton.

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A rendering of the proposed Northland Newton Project.

BPDA Director Brian Golden Speaks on Boston’s Development Climate at NAIOP’s Government Affairs Luncheon

This guest blog post was written by Meghan Doherty of BLDUP.

At a recent NAIOP Government Affairs program, hosted at the office of Nutter McClennen & Fish, Boston Planning and Development Authority (BPDA) Director Brian Golden discussed Boston’s current development climate and the upcoming planning initiatives his office is pursuing.

Director Golden opened with a brief history of the BPDA crediting Mayor John B. Hynes for starting the office in the late 1950s. During that time, as the middle class was moving away from cities into the suburbs, Boston saw its population drastically declining, which led to the creation of the Boston Redevelopment Authority. The newly created entity was tasked with promoting development in order to attract economic investment in Boston. It worked. Between 1980 and 2010, Boston’s population grew at a rate of around 1,500 people each year. Since 2010, Boston’s population growth has skyrocketed gaining around 8,000 additional residents each year.

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In fact, Boston’s rapid growth in the past 10 years has led to the BPDA adjusting its population projections. In 2014, just over 709,000 citizens were projected in the City of Boston by 2030. Revised projections have increased that number to 759,000. This population growth is driving development and planning throughout the city. Since Mayor Walsh has taken office, around $50M new square feet of development have been approved. Mayor Walsh’s administration has also increased the city’s housing goals from 53,000 to 69,000 new units of housing. Currently, Boston is ahead of pace for this goal since much of the development in the past few years has been residential.

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Director Golden also discussed the importance of the IDP requirements currently in place to bring middle income and affordable housing to the city. Since the IDP program began in 2000, nearly 2,600 income-restricted housing units have been built and over $137M has been raised in the Inclusionary Housing Fund. When asked about the possibility of increasing the IDP requirement from the existing 13%, Director Golden cited two examples from recent trips to Seattle and San Francisco. In San Francisco, IDP requirements are high, around 20%, and this burden has halted many projects. This policy, Director Golden believes, is an overreach. As he said, “20% of nothing is nothing.”  In Seattle, however, the IDP requirement is 11% and working well. His goal for Boston is to ensure that projects can move forward while also providing for the maximum amount of housing the market will allow.

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Other highlights from Director Golden’s presentation included:

  • New projects are increasing property tax revenue for the city at a record pace, and these are benefits that flow to all Bostonians. For 2019, the BPDA estimates an additional $77M in tax revenue from new projects alone. These funds are crucial to the city budget to maintain the high quality of life Boston residents expect.
  • Diversity is top of mind for the BPDA’s actions in the city. All RFPs for public land will include criteria to promote diversity and inclusion. The BPDA expects to see a robust plan for diversity and inclusion through all phases of the development including the development/design team through the workforce building the project.
  • The BDPA’s  Resilient Boston Harbor initiative, which will kick off public engagement this month, will focus on how all different types of existing and new projects can deal with rising sea levels. The BPDA’s goal is to use this opportunity to elevate the public realm. Golden cited Moakley Park as an example. Plans here will rework Columbia Road and Day Boulevard to build a natural barrier to deal with the predicted sea level rise while also creating a world-class park. 10% of the city’s capital budget will be devoted to building out pieces of elevated public infrastructure like this project.
  • The BPDA currently is working on 16 major planning initiatives across the city. A full list can be found here http://www.bostonplans.org/planning/planning-initiatives

During the Q+A, when asked what the biggest hurdles are for Boson to reach its 2030 goals, Director Golden cited transportation and affordability. Currently, his office is working on the Go Boston mobility study and stressed that ensuring quality public transit will be key to ensuring continued growth.

Director Golden’s presentation was a thorough overview of the state of development in Boston. It gave a positive view of the future of Boston’s economic and community-oriented future, and his comments gave attendees important insight into the goals of the BPDA over the next few years. It is clear that Director Golden has a holistic understanding of the landscape in Boston, and will continue to work with NAIOP members and other key stakeholders to plan for Boston’s future, while respecting its past.

CoWorking: Collaboration, Configuration and Considerations

This guest blog post was written by Meghan Doherty of BLDUP.

Elisif_20190130_3367The Coworking industry grew 50% between 2016 and 2018 and the variety of options within this market segment is staggering. Boston is no exception, currently, there are around 2.3 million square feet of coworking space in Boston and Cambridge. Last week NAIOP Massachusetts hosted a lively panel discussion covering all things coworking. The panel was moderated by Kristin Blount of Colliers with guests Jessica Hughes of Tishman Speyer, Bryan Koop of Boston Properties, Karina Silvester of Gensler, and Craig Robinson of WeWork.

Aaron Jodka, Chief Economist/Director of Research at Colliers International set the stage for the panel by providing some stats on coworking in Boston and around the globe. While Boston has one of the fastest coworking markets in the country, London and NYC have the largest total markets with WeWork as the single largest tenant in each market. Jodka and his research team certainly expect coworking to continue to grow while lenders in capital markets determine how best to handle deals involving coworking spaces.

As the market grows, traditional office landlords are finding ways to get into the coworking game. Jessica Hughes & Brian Koop discussed how their companies are moving into the coworking space by transforming some of their limited vacant space into a coworking option. Tishman Speyer’s coworking product, Studio, will focus on hospitality and tenant service. Their first foray into this space just opened at Rockefeller Center in NYC with the next location coming to 125 High Street in Boston. Tishman Speyer is working with Gensler on the fitouts for these spaces to ensure a high quality of design.

Boston Properties has transformed a floor of the Prudential Center into Flex – their version of coworking, which is less about shared space and more about more flexible lease terms and ready-to-occupy space. Koop told the crowd the new space has been very popular, being fully leased in its first 1-2 months. As Koop mentioned, the average lifespan of a company is getting shorter and the market is moving away from the “long and strong” leases of old. The goal of Flex is to cater to clients looking for leases in the 1-5 year range.

WeWork, now the We Companies, has been the leader in the space and continues to grow their brand across the globe with locations now in 100 cities. Craig Robinson, WeWork’s new Global Head of Powered by We Services, discussed some of the stats behind the company’s mission to “Create a world where people work to make a life, not just a living”. Generally, 85% of employees are not engaged and around 51% are on the lookout for another job. Employers are finally beginning to realize that the future of work is going to be measured by how people feel and not by the old standards of productivity. Many Fortune 500 companies are already getting ahead of this trend with over 150 of them signed on as WeWork Enterprise members. Enterprise services allow these large companies the ability to offer more creative environments, the flexibility to have offices in multiple cities and the freedom to grow to new markets.

From a design point of view, Karina Silvester of Gensler discussed the broad variations of coworking space. Within this spectrum, there are a few common factors including the need for lots of flexibility along with varied activity-based workstations.  Gensler has designed numerous coworking spaces both large and small including the new Reebok headquarters in Boston. For their new space, Reebok wanted a more open plan/flexible space instead of the numerous small offices they had in the past. As Karina also pointed out “the desire to cowork will extend to digital realms as people are working all the time.”

The panelists agreed the coworking model is here to stay and even in the event of a downturn flexibility will prove important. WeWork continues to diversify its portfolio and offerings and other commercial landlords are following suit as the market shifts. Employee expectations are changing and to attract and retain top talent, employers and in turn, landlords are moving to this flexible, community space.Podcast_Ep1

Can’t get enough coworking? Craig, Karina, and Kristin continue their discussion on The Big Dig, BLDUP & NAIOP’s new CRE podcast. Listen now!

It Has Been An Enjoyable and Satisfying Career Advocating for the CRE Industry!

The following is an excerpt from the acceptance speech I gave for the Edward H. Linde Public Service Award at the recent NAIOP Distinguished Real Estate Awards event. It summarizes the feelings I have about leaving NAIOP after 28 years as its CEO.

A way to judge any organization is to contemplate whether it would be missed.  When I consider what we have accomplished over these past 28 years, I know that all of you in the commercial real estate industry would agree that what we have done on your behalf, and for the Commonwealth, is remarkable.  Please note that I say “we” for very important reasons.

It certainly starts with a top professional staff, with Debbie Osheroff, Rachel Meyer and Taylor Pederson. In addition, there are two exceptional professionals who are now stepping into new leadership roles, Tamara Small & Reesa Fischer. I have tremendous confidence in both of them and I know they will take this organization onto even greater successes. They are all-stars who have earned the respect of their peers, the industry’s leaders, and the greater community.

But our success goes beyond our excellent staff. NAIOP’s unique entrepreneurial DNA has driven its Advocacy, Education, and Networking. And that is a direct result of our engagement with an extensive network of exceptional volunteers, what I call NAIOP’s very “special sauce”. We have been fortunate to have some of the best and brightest professionals in our industry giving their time, knowledge and experience. That includes all of our past Presidents, Board members, executive committee members, and numerous volunteers on our operating committees.

In particular, I would be remiss if I did not call out the Governmental Affairs Committee. Our influence in the legislature, regulatory agencies, policy centers and the courts has been achieved directly through the active commitment of so many members over the past 30 years. They have helped draft bills that became law, offered comments on regulations that were then revised, produced position papers that helped direct policies, and presented amicus briefs that helped guide court decisions.

I am so proud to have worked with these professionals to impact major legislative initiatives, including drafting the District Improvement Financing statute, initiating the effort for the Permit Extension Act, partnering in the passage of the Brownfields Act, and influencing so many areas of regulatory oversight. Currently, and for the foreseeable future, we have also committed to continue focusing on three important issues: Transportation, Housing, & Climate Change.

I also want to thank and recognize the many business association leaders that we have worked with over these many years. To have the kind of successes we have enjoyed only comes with active collaborative partnerships. No one organization can succeed without the give and take of working together with a common agenda – a better Commonwealth.

It has been a true labor of love to lead this organization. I have enjoyed the challenges, the successes, and the many close friendships I have made along the way. I am also very proud of the impacts we have had over the years.

Back in 1991, as I transitioned to the advocacy role from being a developer, I anticipated a relatively short interlude in my career. It clearly was not short. Developers have a vision and an optimism that is critical to producing a successful project. I always tried to maintain both as I led this organization over the years.

As I now turn to my next chapter professionally, I know that I will remain active in advocating for the same big issues that continue to challenge our Commonwealth. However, whatever direction I do go, I will look forward to enjoying all the close relationships I have developed through the years and the knowledge that the future for our industry and NAIOP will be bright.

Once again, thank you so much for the privilege of serving this industry.

NAIOP Event Showcases Three of Boston’s Top Developers

This post comes from BLDUP (bldup.com) reporting on the NAIOP Massachusetts event on September 13, 2018: Development Unicorns: Neighborhood Game Changers.

Elisif_20180913_2045See photos from Development Unicorns: Neighborhood Game Changers. Credit: Elisif Brandon

The developers of three of Boston’s most changed neighborhoods, Fenway, Assembly Row, and Seaport Square came together last week for NAIOP’s panel discussion, Development Unicorns. If the catchy title didn’t grab your attention the insight provided by these forward-thinking developers certainly will. The event opened with a keynote from David P. Manfredi, Elkus Manfredi Architects, that highlighted the 8 Place Making Principles these neighborhoods have in common.  Mr. Manfredi also spoke about the important changes at work in each of these neighborhoods; public investment in infrastructure, skillful placemaking, flexibility and evolution along with density and walkability.  While the architecture of each area is different they all share these characteristics which have played a large role in the success of the projects.

After Mr. Manfredi’s introduction, the expert panel took the stage moderated by Sara Cassidy of AEW Capital Management.  Representing Federal Realty Investment Trust, the minds behind Assembly Row, was Donald Briggs, Executive VP of Development. Mr. Briggs mentioned that as a realty investment trust Federal Realty had the large balance sheet to a take risk on a piece of land in Somerville that had been tied up in a 6-year lawsuit.  He also discussed how the Assembly Row site is much closer to Boston than many people originally realized making it a great location for a development opportunity.

Steve Samuels, Chairman & Principal at Samuels & Associates discussed how his company “stumbled” into the Fenway neighborhood as it was being held hostage by Fenway Park.  His team had to convince people one use at a time to come to Fenway for something other than baseball. The final panelist was Yanni Tsipis, Senior VP-Seaport at WS Development.  WS has been involved in the Seaport since 2006 when it was just a wide open lot with great water views. Mr. Tsipis noted this blank slate provided an interesting opportunity for the development team and once momentum swung in their direction his team decided to triple down and buy out their remaining partners in the Seaport Square area.

The developers had their own story to tell on how the pieces of each neighborhood came together.  The Fenway, Mr. Samuels mentioned, was already a great neighborhood but it had no core. His team worked to build relationships with stakeholders in the area and then began to buy up lots one at a time.  They then rezoned each lot, again piece by piece, leading to a very slow process. Assembly Row also started off slow, as Federal Realty stepped into a deal that had been stalled with that 6-year lawsuit.  However, settling the lawsuit did have a positive outcome as Mr. Briggs pointed out, it pushed his team into embracing office space. Although not part of their original plans the offices turned out to be a very positive driver of growth.  In the Seaport it was very important for WS Development to ensure the area developed a sense of place very early on in the process. As Mr. Tsipis pointed out the neighborhood is still growing, with only about ⅓ of the planned construction now complete.

Other key points echoed across the panel were the importance of responsiveness to the market and also ensuring public realms and first floor retails spaces are unique and inviting to the neighborhood. Mr. Briggs suggested it is always prudent to entitle more square footage which allows for flexibility and optionality.  Federal Realty sacrificed density at the beginning of their project to build on a horizontal context and are now moving to build high rise projects. In the Fenway, The Samuels team had to find the right balance between old and new architecture.  Ultimately their goal for the area is to be ⅓ office, ⅓ residential, ⅓ retail but as Mr. Samuels quickly mentioned the market will drive these decisions.

In Seaport Square, WS has devoted time and energy to planning the public spaces and also programming around these areas as these events organically bring people together.  Mr. Briggs agreed, pointing out that he believes creating fabric in architecture, space between buildings is more important than buildings themselves.

When discussing retail spaces all agreed it was most important to get the first floor spaces right to command a premium above. With the continued success of these three neighborhoods, the insights from the panel were certainly valuable as the city’s development boom continues.

 

BLDUP Spotlight and Q&A – David Begelfer, Reesa Fischer and Tamara Small of NAIOP Massachusetts

This post comes from BLDUP.com: BLDUP Spotlight – David Begelfer, Reesa Fischer and Tamara Small of NAIOP Massachusetts

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Last week NAIOP announced that David Begelfer would be retiring after more than 27 years leading the organization. NAIOP’s Board of Directors voted Reesa Fischer, currently Chief Operating Officer, and Tamara Small, currently Senior Vice President of Government Affairs, to co-lead the association. Fischer will serve as Executive Director with operational, financial, programming and membership/marketing oversight. Small will serve as Chief Executive Officer with oversight of the organization’s government affairs and lobbying activities, public relations, and research. BLDUP sat down with the three industry leaders to discuss the transition and NAIOP’s goals for the future.

BLDUP: For our readers that are not familiar, what is NAIOP?

Tamara Small: Officially NAIOP is The Commercial Real Estate Development Association. Long ago NAIOP stood for National Association of Industrial and Office Parks. It was then changed to National Association of Industrial and Office Properties.  In 2009, the national organization recognized we represented so much more than industrial and office properties.  They did not want to lose the brand recognition that NAIOP had so they kept the acronym, but changed what it stood for.  We now represent office, retail, mixed-use, multifamily, lab and institutional space here in Massachusetts. We are the largest of all the NAIOP chapters at nearly 1,700 members.

Reesa Fischer: Our membership is made up of a variety of industry leaders.  While we are primarily (60%), owners, developers, and operators, the other 40% is made up of attorneys, brokers, and everyone else who supports the commercial real estate industry.  This variety of folks involved in the organization is also a big differentiator for NAIOP.  We operate based on a 3 legs of the stool principle, government affairs advocacy, events/education & networking.

BLDUP:  What is NAIOP forecasting for the Boston market?  Are there any trends you are seeing?

David Begelfer: What I see as our greatest risk going forward is probably not a recession, at least locally.  The Boston market is quite strong and we do not see a lot of oversupply or speculative projects.

A serious downturn does not look like it’s in the cards for the next 2-3 years but we do anticipate somewhat of a slow down because of our success. There are two major components exceeding inflation, land cost and construction costs (the biggest part being labor costs) and these two issues affect development.  We have a very tight market with regards to the construction industry and the number of people and subcontractors.  We also have barriers for entry for companies and individuals to move in from out of state because of the high cost of living.  We are seeing inflation in costs of land/construction because of our dynamic economy. Because of this, we are already starting to price out residential rent projects, pushing them toward condos.

Another aspect of this looming problem is the limited capacity of skilled unemployed workers that can fuel the market going forward.  We have relied upon immigration from out of the country for the last 25 years of growth.  Immigration is starting to have some cracks for various reasons (policy, political, practical economic).  We have concerns that the constant flow is drying up and Massachusetts has always had a problem with net migration out of the state.  The bottom line, as I see it, is that we are at a greater risk from our success than from a possible recession.

BLDUP:  David, What is your proudest achievement as outgoing CEO of NAIOP?

David Begelfer:  It is very hard to choose one particular moment, but if I had to take an overview of the past 27+ years, I’m very proud of the “secret sauce” of NAIOP.  From the start, the secret sauce was to integrate the top professionals and engage in our organization primarily in government affairs and advocacy.  It’s very difficult to handle the wide range of issues that we deal with, regulatory, legislative, judicial, policy and then within each of those baskets another array of issues from environmental, transportation, economic, building codes, all across the map.  The only way we have been able to handle this and provide expert feedback is the unbelievably involved professionals who work with us. This has allowed us to expand the breadth and depth of issues that we deal with and we have done it in a way that we can give something back. We can’t pay for this counsel but instead, we offer networking, connections, and leadership opportunities to add value to our relationships and provide a win/win for everyone involved.  The involvement and growth of volunteerism within the organization is the greatest success I could imagine.

Additionally, we have been able to bring some of the top people in the industry onto our staff.  One of the reasons this is a seamless transition is that others have developed expertise within our organization. It was very easy to choose Reesa & Tamara to move forward into the leadership of the organization.

Reesa Fischer: I feel it is important to mention David’s ability to embrace change.  Most trade associations are very stagnant and very conservative.  They do what they do and as long as it’s not broken they don’t fix it is. One thing we value at NAIOP (and it’s why I love working here) is that embracing change is what it’s going to take to stay competitive.  We like to think of our organization as a disruptor and we are always trying new things that people wouldn’t necessarily expect from a trade association.

David Begelfer: We are always looking to see what can be changed and done differently.  There is no complacency in this organization. People talk about having periodic strategic plans; we strategically think about our organization throughout the year.  That may cause more work, but it keeps us relevant. You can’t fight change you have to embrace it!

BLDUP: Government affairs and advocacy is a big part of what you do. How do you work to accomplish your advocacy goals?

Tamara Small: We have our eyes and ears on anything that would have an impact on the industry and we weigh in wherever appropriate – whether it’s legislative, regulatory or judicial advocacy.  The process is a very collaborative one.  We have over 200 people on our Government Affairs committee and a very active board of directors who provide input. This expertise allows us to provide real-world examples that illustrate the impact of any proposed changes.

As an example, we just wrapped up the legislative session which ran from January 2017 through July 31, 2018.  There were about 8,000 bills filed this session and we tracked hundreds of them, provided testimony, served on legislative task forces and met with legislators.  Clearly, no legislator can be an expert on every single issue. So, for those issues that are of interest to us, we provide substantive, factual information on how the bill would affect the commercial real estate industry – and often the greater overall economy. Through this approach, we have built strong relationships with legislators and regulators.

A good example of how NAIOP handles advocacy would be a provision of the economic development bill that was signed into law by Governor Baker on August 10. The bill includes language that will bring clarity to the development process for properties along railroad rights of way. The process had been a source of frustration to the development community for many years. So, through our government affairs committee, we drafted a legislative fix and worked for 8 years to educate lawmakers on the need for the change. Through the leadership of key legislators and MassDOT Secretary Stephanie Pollack, we were able to work together on language that was signed into law. It will bring transparency and predictability to the development process – two things that are critical for any real estate project.   Talking about railroad rights of way may not be the most exciting topic, but it is one of those things that will affect important transit-oriented projects throughout the Commonwealth.

BLDUP:  What is the next legislative issue you will be focusing on?

Looking ahead, our three areas of focus will be: Housing, Transportation, and Climate Resiliency

We believe that climate resiliency is a top priority for the industry. It’s an economic development issue.  We were very supportive of the climate change legislation that passed this session. The bill that was passed requires the Commonwealth to develop a climate adaptation plan, complete vulnerability assessments at the state and local levels, and identify how the public and private sectors can work together to really think through what climate change means for the real estate industry and for the greater economy.

Another broader economic development issue that we are passionate about is the need for more workforce housing.  We were very supportive of Governor Baker’s housing bill.  We worked with all of the business groups as well as the Mass Municipal Association to try and get that passed in the final hours of the legislative session, but unfortunately, it didn’t make it. In my mind, it would have been the most significant housing bill in years.  We also thought it was very significant that we had such a broad coalition of support for the first time in 30 years of discussion around this issue. We are going to continue to push for this in the next session, which kicks off in January.

Our third big area is transportation. We will continue to advocate for an efficient, world-class transportation system in MA.  We need the type of system that allows people to get in and out of the city and to expanding areas with ease.  We are going to be looking at that in the next legislative session to ensure we can expand on existing capacity.

BLDUP:  Reesa & Tamara what are your goals for the NAIOP in next 5-10 years and David what would you like to see continue after you retire?

David Begelfer: I do think that NAIOP is going to continue to sit on the same 3 legs of the stool, advocacy, education, programming/networking.  Every member gets something from one or all of these areas.  We need to take a look at new technology, be proactive, be entrepreneurial, be thoughtful, and stay in touch with members and their needs.  We also want to offer new platforms for information.

One thing that is NOT going to be happening, is people are NOT going to be totally virtual. They want to meet face to face. That’s never going to change.  You will always need networking.

We have also taken a look at online learning and have seen a much greater demand for face to face learning but in a tighter timeline.  We are moving into podcasts.  That seems to be a very popular way for people to get information while driving, walking, or spinning. It’s hard to plan for the future when technology is changing so quickly.  Right now we have a partnership with the MIT Center for Real Estate that enables us to see what is on the cutting edge of the industry.  We just need to continue to keep an open mind.

Reesa Fischer: It’s about expanding the information and knowledge the we can provide the members and providing them with different options of delivery. People are just so busy and not everyone can come to a site event.  Some people prefer podcasts or live webinars.  We need to expand our information and methods of delivery to stay relevant.

We have also seen a huge demand for professional development skills that are outside of the industry.  The membership is looking to be able to provide skills for their talent.  Talent is a big issue right now, retaining and obtaining.  Learning professional skills while networking and engaging with people in the industry is a unique opportunity we can provide our members.

Tamara Small:  We are nothing without members. We look forward to working with our many member-driven committees and continually seeking feedback directly from the industry.  As Reesa and I transition to our new roles, we will be sitting down with our leadership and members to do our own focus groups in order to understand what they need. We look forward to growing and expanding with them.

Reesa Fischer:  Yes, we are very externally focused!

BLDUP:  What is the last book you read that you would recommend and why?

Reesa Fischer: The Road to Recognition by Seth Price.  Seth is a local guy who runs Placester and did a keynote at one of our marketing conferences.  The book is about building your personal brand which plays into a corporate brand: being authentic, setting up expectations, meeting expectations.  Detailing ways to keep you competitive either personally or professionally. It’s how I look at our organization so that we can continue to be important in the industry.

Tamara Small: Starting Small and Making It Big: An Entrepreneur’s Journey to Billion-Dollar Philanthropist by Bill Cummings.  It is interesting to hear his rags to riches story and his unbelievable drive and entrepreneurial spirit that have helped create his company.  The book provides history about the CRE industry but also an inside look at one of the most entrepreneurial people I’ve encountered.  He is also someone who has really devoted a good part of his career now to charitable endeavors and that is very admirable.

David Begelfer: Leonardo da Vinci by Walter Isaacson.  It’s astounding the genius that was there but not just genius: the genius was combined with unbelievable curiosity.  Almost anything he saw he wanted to look further into it. It’s frightening that a lot of what he discovered was never published and lost for hundreds of years. People would rediscover these things hundreds of years later.  He discovered something about how the heart works but it was not actually verified until 1970. He was way ahead of his time. It is a very fascinating read and again it was not just intelligence but a need to be entrepreneurial and also a great observer and creative.

BLDUP:  It is important to note that despite the CRE industry being primarily male, NAIOP’s new leadership team is female.  Tamara and Reesa what are your thoughts on this.

Reesa Fischer:  Just a little history, when I started here 8 years ago, the percentage of women in the industry and in NAIOP was significantly lower.  It is really exciting to see that women have very quickly been getting involved.  Our female membership rates have gone from around 10% up to 28-30%.

About 7 years ago we started an annual event, the Women of Influence luncheon. It sells out 200+ tickets every year with wait lists of people.  I think the pipeline is filling up as young women are starting to come into the industry and seeing there are a variety of ways to get involved, not just brokerage but in the development world as well.

Women are very organized and project management focused and very collaborative and that is what this industry is.  It’s about time women recognize they can actually play an important role. We are also more women in senior roles and running companies.

Our Distinguished Real Estate Award recipient this year is Related Beal, run by Kimberly Sherman Stamler.  Our President-elect for next year is also a woman so the top 3 levels of our organization will be female.  We are very excited to feel like we are following the trend and blazing new trails for women in the industry.

Tamara Small:  Going forward we will operate under a collaborative leadership structure which we found is much more common with women.  Reesa and I have worked together for so many years and we both have our own unique strengths so we are excited to continue this and take NAIOP to the next level.

David Begelfer: We have not said we want to have women run the organization, we have put into place the best people we have for the position and they happen to be women.  They are stepping up and being chosen to lead because of their skills.

BLDUP:  David, to conclude on more of a personal note, what are your plans for your new free time?

David Begelfer:  I have a lot of interests to stay active and involved in the industry.  I love to travel, play golf, those are wonderful things, but I don’t see that as sufficient to keep me alive and well and excited about my future. I’m looking into opportunities that will allow me to keep active and participate in this active industry. I am mostly looking forward to being a member of NAIOP and getting all the value that a member gets from being involved.