Tag Archives: Cambridge

COVID 19 Update: Eviction Legislation Before Senate, Clarity on Construction Moratoriums and Other Issues Affecting CRE

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Construction Moratoriums and Guidance

In recent days, there has been a great deal of confusion over construction moratoriums at the state and local level. We hope the following summary, which reflects the latest information, provides some clarity.

State: On Tuesday, March 31, the Baker-Polito Administration updated the construction related guidance in response to the COVID-19 pandemic. The new guidance limits “essential” construction to housing and critical infrastructure activities. Under the revised list, private nonresidential construction is not considered essential (unless it falls within one of the specified exemptions). As of noon, April 1, only housing projects (including mixed use with housing, infrastructure projects and construction related to COVID-19 can proceed. On April 2, the state updated the FAQ page to answer questions on this issue. The state also issued supplemental guidelines to limit COVID-19 exposures on construction sites and additional guidance outlining the enforcement of COVID-19 safety guidelines. It specifically states that “for all private projects the primary enforcement responsibility rests with the city or town.”

Local: Boston, Somerville, Cambridge, and numerous other cities and towns have issued a halt to all construction until further notice. Companies should maintain the crews necessary to make sure sites are “safe and secure.”  On April 5, Mayor Walsh asked that even if a job is one of the few that is allowed to move forward under current guidelines, companies should consider shutting down. In addition, effective April 2, Cambridge issued its own construction guidance

Commercial and Residential Eviction Moratorium Legislation

On Thursday, April 2, the House passed H. 4615, An Act providing for a moratorium on evictions and foreclosures during the COVID-19 Emergency. The bill provides eviction moratoriums for both commercial and residential tenants. The bill is now before the Senate, where a vote is expected on April 9.

Property Tax Update

As part of Chapter 53 of the Acts of 2020, the municipal relief bill signed by Governor Baker on April 3, municipalities are allowed to extend the due date of quarterly taxes to June 1st.  
 
The City of Cambridge announced it is extending the due date for Second Half Real Estate and Property Tax bills until June 1, 2020. In addition, interest and other penalties on late payments made on Excise Tax and water/sewer bills with due dates after March 10, 2020 will be waived if payments are made before June 30, 2020. It is our understanding that this applies to both residential and commercial.
 
The City of Boston has extended the due date for property tax bills in Boston until June 1st to give residents more flexibility during the ongoing public health crisis caused by COVID-19. It is our understanding this only applies to residential.

BPDA Covid-19 Response

The BPDA is postponing all BPDA-hosted public meetings regarding Article 80 development projects and planning studies until further notice. While projects will continue to be reviewed internally by BPDA staff, the public review process for both Article 80 development projects and the BPDA’s planning studies is on hold until public meetings can be resumed. If you are a landlord or tenant of the BPDA’s housing program, please visit the BPDA’s housing page for information and resources. As the BPDA’s response to Covid-19 continues to evolve, please check this page or follow @bostonplans on Twitter for updated guidance.

COVID-19 Massachusetts Relief Fund

On April 6, Governor Charlie Baker and First Lady Lauren Baker announced the launch of the COVID-19 Massachusetts Relief Fund. It is designed to support organizations assisting Massachusetts’ most vulnerable residents, frontline health care workers, and other essential service providers.  Donations are needed and encouraged.
 

COVID 19 Update: Governor Signs Bill Tolling Local Permits and Other Issues Affecting CRE

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Governor Signs Bill Tolling Municipal Permits

Today, Governor Baker signed H.4598, An Act to address challenges faced by municipalities and state authorities resulting from COVID-19. This bill addresses many challenges faced by local governments throughout the Commonwealth during this time and includes language that addresses the tolling of local permits and is supported by the Mass Municipal Association, NAIOP MA, and the Home Builders & Remodelers Association. The language, found in Section 17 provides necessary relief to cities and towns that, due to disruptions caused by the state of emergency, are unable to timely process and hear permitting applications. At the same time, these changes balance the needs of residents and developers by ensuring that their current permits are no impaired by the emergency declaration. 

House Passes Commercial and Residential Eviction Moratorium

On Thursday, April 2, the House passed H. 4615, An Act providing for a moratorium on evictions and foreclosures during the COVID-19 Emergency . The bill enacts eviction moratoriums for both commercial and residential tenants. The bill now moves to the Senate.

Small Business Administration Clarifies Paycheck Protection Program

Late yesterday, the Small Business Administration (SBA) issued an interim final rule that provides additional guidelines and requirements for its Paycheck Protection Program (PPP) aiding small businesses affected by the COVID-19 crisis. The interim rule provides increased clarity on several key issues. It specifies underwriting expectations and allows lenders to rely on borrower documentation for loan forgiveness without verification – if the borrower attests that it has accurately verified the payments for eligible costs. This provides increased protection for lenders should borrowers misrepresent information. Additionally, the guidance states that after seven weeks, lenders may request that SBA purchase the expected forgiveness amount of PPP loans. It also allows banks that are already certified as 7(a) lenders to begin approving loan applications with SBA delegated authority starting today, April 3.

Cambridge Issues Construction Guidance for Still-Active Sites

On the evening of April 2, the City of Cambridge released guidance for currently active construction sites. The guidance does not change the types of construction activities covered by the existing moratorium, issued on March 18. All contractors undertaking construction projects that have received approval from the Inspectional Services Department or the Department of Public Works to work during the Moratorium shall follow the City’s COVID-19 Construction Guidelines, and are strongly urged to review the Commonwealth’s COVID-19 Guidelines and Procedures for all Construction Sites and Workers. Inspectional Services or Public Works Departments may shut down job sites that are found to be in violation of the City’s COVID-19 Construction Guidelines.Additionally, larger construction sites may require more elaborate reports and worker training plans.

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.

What the Future Holds for Cambridge, MA – The Innovation Capital of the World

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This blog post was submitted by Allyson Quinby, Account Executive at Solomon McCown & Company.

NAIOP Massachusetts’ “Cambridge: Ready, Set, Go!” breakfast event on February 15 featured a well-versed panel of real estate executives who spoke on “What’s new and what’s next for this hot market.”  Mary Lentz, McCall & Almy, moderated the expert panel that included Tom Andrews, Alexandria Real Estate Equities; Michael Cantalupa, Boston Properties; Shawn Hurley, Skanska USA Commercial Development; Steven Marsh, MIT Investment Management Company; and Thomas O’Brien, The HYM Investment Group.

View photos and event presentation slides.

Marsh noted how the world is changing every day, and that the U.S. along with many other superpowers such as China and India, continues to look for new ways to compete. For example, the U.S. aggressively leads the way when it comes to innovation, and as Marsh discussed, Cambridge has long been the epicenter of innovation productivity.

Due to Vertex’s move to Boston’s Seaport district, many in the real estate industry worry that the Cambridge market no longer holds the same stature it once did. However, NAIOP’s expert panelists assured us that we are in a natural state in Cambridge, and as stated by Cantalupa, “If you can afford to be next to MIT, you will be.” The lab market is steady, and many developers like Skanska USA Commercial Development are currently taking time to re-evaluate outdated space to create real estate opportunities that will fit all types of tenant needs in the future.

Home to two of the finest institutions of higher education in the world, Harvard and MIT, the panelists argued that Cambridge has gained and will maintain a prominent reputation. Companies in the life-sciences, technology, bio-pharmacology, education and innovation sectors, along with many startups, have found their homes in Cambridge. Due to the competitive advantage that comes with a Cambridge address, real estate firms have experienced a tremendous amount of success leasing space in this market. As the panelists noted, there is still an active demand and we continue to see new development activity in this market today.

Marsh and Andrews also spoke about the importance of proximity for lab space to MIT and other academic buildings. It is crucial that all facilities continue to collaborate, creating an environment that fosters innovation. Hurley also noted how mixed-use space needs to continue to be developed; it is important that we connect lab to retail and public spaces.

O’Brien discussed the next generation workforce and the need to build corporate and residential spaces that attract young professionals. His firm is developing the NorthPoint neighborhood, a mixed-use campus with flexibility – one that allows people to live and work in the same place.

Cantalupa and Hurley spoke on how real estate developers need to build flexible buildings that can adjust to market demands. Hurley noted how Skanska’s plan behind 150 Second Street was to deliver a Class-A, highly flexible property with a sustainable design that had features all tenants could enjoy. The building was also designed to accommodate either one or multiple tenants.

As stated by Marsh (and I agree), “Cambridge is special – it goes well beyond real estate” – and it is here that we want to continue the innovation story.

Note from NAIOP: Learn more about the dynamic Cambridge market by attending our 10th Anniversary Bus Tour, Big & Breaking in Greater Boston. Cambridge, along with Fenway, Longwood, Boston’s Seaport and Allston will be featured during this fast-paced and informative live market update bus tour.

Windshield Tour of Boston’s Four Hottest Markets

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What if you could get to know a key sector of the Greater Boston commercial real estate market in a half day?  How would you like to get in-depth insight and analysis on existing and proposed development projects, and the latest sales, lease, and development activity? 

You can do this on October 6th at the NAIOP Massachusetts Annual Bus Tour: “Markets in Transition: Today’s Projects and Tomorrow’s Opportunities.” 

Networking at NAIOP Bus Tour

If you never have participated in one of these tours, you are missing out on a great opportunity to understand what is happening in the market from the leading brokers in the area. The 2010 NAIOP Bus Tour will visit Boston’s Seaport area, Cambridge, North Inner Suburbs, and Waltham.  

You’ll be able to ask the experts questions, while networking with the region’s owners, investors, developers, brokers and real estate professionals. 

Contact Pauline Rand at 781-453-6900 ext. 4 or rand@naiopma.org or visit our website to register today.