Category Archives: Owners & Developers

COVID-19 UPDATE: Governor Baker Announces New Restrictions Designed to Curb the Spike of COVID-19: Business Capacity, Gathering Limits, and Hospital Requirements Updated

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Today, Governor Baker announced new statewide restrictions designed to curb the recent spike in COVID-19 cases in Massachusetts. These restrictions will go into effect starting Saturday, December 26 and be in place for at least 2 weeks. It is the goal of the Baker-Polito Administration to keep these measures temporary, but extensions may be required based on public health data. 

New Business Restrictions

The new statewide requirements include, but are not limited to:

  • Indoor and outdoor gathering limits for private property, public spaces and event venues have been reduced to 25 people outdoors and 10 people indoors.
  • Office limitations will be reduced to 25% of total capacity.
  • Capacities for restaurants, personal services, retail, libraries, lodging, theaters, performance venues, places of worship, museums, cultural facilities and others will be reduced to 25%.
  • Workers and staff will not count towards the occupancy count for restaurants, personal services, places of worship and retail businesses such as grocery stores.
  • All other sector-specific guidance remains in place.

For the most up-to-date guidance, requirements and information on the Commonwealth’s COVID-19 response, please visit: mass.gov/reopening.

Updated Hospital Guidance

In order to preserve bed capacity, today it was also announced that effective 12:01am on December 26, all hospitals must postpone or cancel all non-essential in-patient elective invasive procedures, unless postponement would lead to high-risk or significant clinical decline of an individuals health. Additionally, hospitals are advised not to schedule new in-patient non-essential elective procedures until further notice by the Department of Public Health. Ambulatory, outpatient treatment, and preventive procedures (such as mammograms or cancer screenings) are not impacted. In-patient and emergency services are also not affected by this order.

Boston First to Embrace Obama-Era Zoning Rules

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Development association backs plan to incorporate fair-housing review for residential projects

By: Scott Van Voorhis | This article was originally published in ENR New England on December 21, 2020

Boston will become the first major city in the country to incorporate Obama-era, federal anti-discrimination rules into the process of reviewing major new apartment and condo projects.

The Boston Planning & Development Agency (BPDA) on Dec. 17 voted to add Affirmatively Furthering Fair Housing rules to the city’s zoning code, a move that comes amid an ongoing surge of large, new residential projects not just downtown, but increasingly in the city’s working-class and minority neighborhoods.

The Obama-era rules became a favorite target of President Donald Trump on the campaign trail, who rescinded the policy over the summer, arguing they would lead to flood of “low-income housing” into the suburbs.

However, the new policy has the solid backing a major trade group representing developers in Boston and across Massachusetts.

Tamara Small, CEO of NAIOP Massachusetts, said the developers in her organization recognize the need for the rules, having formed a group to provide feedback on the proposal to the elected officials working on it.

“It was a collaborative process,” Small said. “We really want to tackle decades of systemic discrimination in housing. Our members are very focused on creating housing opportunities.”

“It is really important to recognize that the real estate industry of today is not the real estate industry of the 1950’s,” Small said.

The organization’s main concern was that the rules and the vetting process be predictable and clearly laid out, as well as having enough flexibility to enable developers to come with creative ways of fulfilling their obligations.

“We also weighed in to ensure there is a process that is both predictable and clear to understand,” Small said.

Under the new requirements, housing developers will use an online tool created by BPDA officials to submit a range of information called for under the new policy, starting with the proposed site of the project and the neighborhood it would be built in.

Developers would also be required to examine the potential for gentrification and other potentially negative impacts on “area residents historically discriminated against,” the development authority noted in a press release.

To head off or mitigate any potential negative impacts, developers would be able to pick from a number of options laid out by the city under the new review process.

These include boosting the number of affordable units available for rent or purchase at below market rates in the proposed project, or further deepening the affordability.

Other options include providing more two-bedroom affordable units large enough for families, or ensuring the number of family-sized, affordable units in the proposed project matches up with the percent of these larger apartments and condos in the neighborhood.

Developers also have the flexibility to propose alternative steps as well to address potential neighborhood displacement and affordability issues, Small said.

“They will have flexibility to come up with creative solutions that might be better suited for that project and for that neighborhood,” Small said.

The proposal was championed by City Councilor Lydia Edwards, with the council voting on Dec. 9 to unanimously approve it.

The last and final stop will come before the Boston Zoning Commission, which is expected to approve the amendment to the city’s zoning rules early next year.

“To reverse the exclusionary housing practices of the past that have kept families of color from accessing safe and secure housing and building generational wealth, we must support aggressive new housing policies that promote equity and fairness,” said Boston Mayor Marty Walsh said in a statement.

How CRE in Massachusetts Navigated a Year of Pandemic and Social Unrest

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Industry Responded with Kindness, Creativity and Courage

By Tamara Small | The below was originally published in Banker & Tradesman on December 20, 2020.

This time last year, no one knew what 2020 would hold. Instead, as an industry we predicted an expansion of the office as a talent recruitment tool, fast-paced industrial growth, and a continued tightening of the housing market.  

While some of these predictions were accurate, the COVID-19 pandemic quickly turned others on their head. One thing is clear; 2020 drastically changed expectations and the way the world did business.  

Instrumental in COVID-19 Response 

When the COVID-19 pandemic hit Massachusetts, no one knew how to respond. Frontline workers, who are still risking their lives every day, did not have enough masks to do their jobs safely. Families were thrown into chaos – with kids home from school, online learning developing on the go, and jobs thrown into uncharted territory. And no one needs to be reminded of the stampede on basic necessities.  

Commercial real estate companies across the commonwealth rose to the occasion. Within days, JLL released a new platform to increase communications and resources between tenants and landlords. Within weeks, Federal Realty Investment Trust worked with the city of Somerville to bring a mask decontamination system to the Greater Boston area – which has been instrumental in providing health care professionals the clean, safe equipment they need. Boston Urban Partners started Family Meal, a six-episode series of live–streamed cooking classes with local, award winning chefs (including Jodie Adams and Andy Husbands) to raise money for No Kid Hungry. These are just a few of the extraordinary acts of company kindness we have seen. 

But that is not all. Automatic doors, new air filtration systems, hand sanitizer stations and socially distanced work areas have been implemented in office buildings and common areas. Residential property owners have taken the Boston Housing Stability Pledge to ensure resident safety during this public health crisis. Commercial owners worked with small businesses to help provide needed relief to survive this crisis. New platforms and protocols for curbside pickup, online and in-person shopping, and dining have all quickly been implemented and continually refined as new public health information becomes available. As CEO of NAIOP Massachusetts, I am proud to represent an industry that stepped up in a global health crisis to do its part.  

Economic Development Becomes Economic Relief 

On March 4, Gov. Charlie Baker released his proposal for an economic development bill. Within weeks, it became clear that an economic relief bill would instead be required for Massachusetts’ businesses and residents – just one of many necessary legislative and executive actions.  

But in the background of COVID, the housing crisis deepened. An Act to Promote Housing Choices, which was originally filed by Baker and is now in conference committee, is targeted at lowering voting thresholds in key zoning votes, allowing for increased production of critically needed housing. If it does not pass, expect the production of housing to slow.  

The conversation around transportation changed in some ways, and in other ways not at all. Suddenly, with massively decreased ridership (and little-to-no road congestion), the MBTA was faced with enormous revenue shortfalls. Proposed service changes have been met with opposition, but a modified version of the changes was approved last week. It is clear that our overburdened system will continue to face tough choices into next year.   

What quickly became clear is that the uniqueness of this crisis requires a cautionary approach to policymaking to ensure there are no unintended consequences or long-term impediments to economic growth and stability. The only path to a sustainable recovery is to create a climate for job creation and economic opportunity for all. NAIOP will continue to work with policymakers to ensure thoughtful, practical economic relief is implemented.  

DEI Efforts Come to the Forefront 

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

NAIOP asked its members and colleagues to listen, learn, engage their leadership and support MWBE businesses. We have seen member-companies like VHB quickly take action to communicate with their employees and the public about its commitment to continuing to be active participants in advancing racial justice and social equity – and it did not stop there.  

Industry conversations on successful diversity initiatives saw over 300 live virtual participants and over 200 after-event watches. More and more companies started reviewing their internal practices and the industry is committed to diversity, equity, and inclusion. The time for real change is now.  

While 2020 was in many ways unexpected, CRE rose to the challenges faced by our communities, our colleagues, and our friends and family. While it is hard to know what 2021 has in store for us, we here at NAIOP know that CRE will continue to evolve and endure.  

COVID-19 Update: Governor Announces Statewide Rollback to Step III, Phase 1 Reopening; Workplace, Office, Retail and Restaurant Guidance Revised; DPH Releases Updated Return to Work Guidance

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The Baker-Polito Administration announced several actions yesterday and today in an effort to contain the recent COVID-19 case rise in the Commonwealth.

Governor Announces Statewide Rollback to Phase III, Step 1
This afternoon, Governor Baker announced a statewide rollback to Phase III, Step 1 in the Commonwealth’s Reopening Plan. In the Executive Order, Governor Baker also announced updates to the the protocols governing workspaces, restaurants and indoor dining, and office capacities. These requirements will go into effect on Sunday, December 13.

Changes in this update include but are not limited to:

  • Gyms, stores, offices, and church capacity will be reduced to 40%.
  • The maximum indoor capacity for private gatherings remains at 10 people, while the maximum outdoor capacity for private gatherings will now be 25. The full revised gatherings order can be found by clicking here.
  • Restaurant table capacity will be reduced to 6 persons and total dining time will be limited to 90 minutes.
  • Restaurant diners will be required to wear masks unless actively eating or drinking.
  • Workers will be required to wear masks in all common areas and meeting rooms even where 6ft. social distancing guidelines can be maintained.
  • Employers are asked to allow remote work and telecommuting where possible.

Sector specific guidance will be updated to reflect these changes this week. All information related to Massachusetts’ Reopening Plan can be found by visiting mass.gov/reopening.

DPH Releases Revised Return to Work Guidance
On December 7, 2020, the Department of Public Health revised its return to work guidance, which outlines when workers should quarantine or isolate, and provides guidance on when isolation can end. The guidance also outlines qualifying circumstances that could potentially shorten a strict quarantine period.

An earlier posting of this update incorrectly indicated that restaurant capacity would be decreased to 40%. The post was updated on December 8, 2020 @ 5:25pm.

NAIOP Massachusetts Honors JLL, Federal Realty, Bulfinch, VHB and Boston Urban Partners at Virtual Impact Awards 2021 Leadership Announced

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2021 Leadership Announced

Needham, MA – Last night, NAIOP Massachusetts, The Commercial Real Estate Development Association, held the 2020 Virtual Impact Awards. The event was a celebration of NAIOP’s member companies that positively impacted communities across Massachusetts in response to the pandemic and responded to social and economic injustice.

Several local commercial real estate companies were honored, including Federal Realty Investment Trust, who was recognized in the Community Outreach category for its partnership with Mass General Brigham, Battelle and the City of Somerville to bring a mask decontamination system to the Greater Boston Area. JLL was recognized in the category of Landlord Support & Commercial/Residential Property Management for its digital campaign geared toward landlord and tenant clients. The ongoing program included providing compelling content on topics that help landlords and tenants navigate the current real estate environment including re-entry tools, business planning resources, research reports, and webinars. In the category of Employee Engagement, Bulfinch was honored for implementing new strategies to keep its team safe, healthy, connected and engaged. Since the pandemic began, Bulfinch held over 70 virtual meetings, check-ins and team events for employees, including wellness activities and virtual volunteering.

In addition, VHB was recognized in the Diversity, Equity and Inclusion Response category for its employee resource group, VHB IDEAL (Inclusion, Diversity, and Equity Alliance), which is focused on promoting an integrated approach to awareness, inclusiveness, openness, and diversity at VHB. Finally, in the Individual Impact category, Boston Urban Partners was honored for its unique Family Meal Series, six episodes of live stream cooking classes with local, award winning chefs that benefitted No Kid Hungry, a campaign designed to end childhood hunger.

The evening began with a brief Annual Meeting, where the Chapter named its 2021 Board Management Committee, led by Chair (and 2020 President) Leslie Cohen of Samuels & Associates and President Tom Andrews of Alexandria Real Estate Equities. Joining Cohen and Andrews on the Committee are Past Chairs Douglass Karp of New England Development, Ed Marsteiner of National Development and Sara Cassidy of AEW Capital Management, as well as President-Elect Jessica Hughes of Tishman Speyer, Treasurer Patrick McMahon of Federal Realty Investment Trust, and Secretary Kirk Sykes of Accordia Partners.

NAIOP Massachusetts also announced the 2021 nominees to the Chapter’s Board of Directors. William Kane of BioMed Realty, Katy O’Neil of Suffolk Construction Company, and David Madan of Boston Investmentsjoined the Boardwith terms expiring in 2023. James F. Carlin of Crosspoint Associates, Dennis Clarke of Cummings Properties, Abby Goldenfarb of Trinity Financial, Bryan Koop of Boston Properties, Maura Moffatt of Synergy Investments, Chad Remis of Oxford Properties Group, Kimberly Sherman Stamler of Related Beal, and James Tierney of JLL were all reappointed for three year terms.

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About NAIOP

NAIOP Massachusetts, The Commercial Real Estate Development Association, is the leading organization for developers, owners, and investors of office, research & development, industrial, mixed use, multifamily, retail, and institutional real estate in the Commonwealth. NAIOP advocates for policies that advance the commercial real estate industry while providing outstanding education and networking opportunities. For more information, visit www.naiopma.org.

Press Contact: Anastasia Nicolaou (nicolaou@naiopma.org)

Office Space: Dead on Arrival or a New Frontier?

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

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

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

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

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

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

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

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

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

Tenants Discover Downsides 

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

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

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

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

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

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

Embrace Office Innovation 

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

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

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

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

SJC Supports NAIOP Position in Sudbury v. MBTA

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

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

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

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

Optimism Colors Shifting Views of Development Market

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Biotech Could Benefit From Open Office Space

Written By: Colin A. Young

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

-END-
09/15/2020

COVID-19 Update: Governor Baker Extends Eviction Moratorium

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

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

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

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

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Governor Baker Announces Phase 3 Start Date

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

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

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

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

Governor Baker Amends State Permit Tolling Order

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

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

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

SJC Releases Updated Order Regarding Court Operations

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

DPU Begins Energy Relief Plan for Commercial and Industrial Customers

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

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

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