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!  

CEO TAMARA SMALL TESTIFIES IN SUPPORT OF NAIOP LEGISLATION REGARDING UTILITY ACCOUNTABILITY

On Tuesday, July 9 NAIOP CEO Tamara Small testified before the Joint Committee on Telecommunications, Utilities and Cable in support of NAIOP bill H. 2861, An Act to Encourage Predictability in Utility Connections. Introduced by Representative Thomas Golden of Lowell, the legislation is targeted at addressing the frustrations the commercial real estate sector has expressed for years regarding the lack of transparency and predictability for utility connections at development projects. If passed, the bill will ensure that commercial customers, as well as new connections and relocations of existing connections, are included in the service quality standards.

NAIOP CEO Tamara Small testifying before the Joint Committee of Telecommunications, Utilities and Cable July 9,2019

Currently, when utilities request a rate increase, they are “graded” based on how they perform under the Department of Public Utilities’ Service Quality Standards.  Customer satisfaction, response times for service outages, and repairs and maintenance are some of the criteria considered under M.G.L. Chapter 164 §1E.  However, utilities are only judged based on their performance with residential customers, not commercial customers.  In addition, only existing connections, and not new connections, are included in the service quality standards.

“As we saw with the gas moratorium and lockout last fall, new utility connections are absolutely critical for economic growth,” testified Small. “Small business owners could not open their doors, companies could not relocate to new office space, and tenants who had signed leases for new apartments did not have a place to call home.”

NAIOP believes that by including commercial projects, the relocation of existing connections, and new connections in the review process, we will have greater transparency and accountability in the regulation of our utilities statewide. NAIOP will continue to advocate for the passage of this bill so that future real estate development projects could benefit from the proposed change.

A Great Start for Economic Development Under the Baker/Polito Administration

BakerGovernor Charlie Baker and Lieutenant Governor Karyn Polito just filed the administration’s Economic Development bill with $1 billion to be invested over the next five years into economic development, housing and job training across the Commonwealth.

A core principal of this legislation is to take various existing programs and make enhancements to them so that they become more widely used, more effective, recapitalized, and more user-friendly:

  • MassWorks ($500 million proposed capital authorization): Reauthorizes a capital grant program that provides municipalities and other public entities with public infrastructure grants to support economic development and job creation.
  • Brownfields Redevelopment Fund ($75 million proposed capital authorization): Moves funding for the state’s Brownfields Redevelopment Fund to the capital program, providing a reliable long-term funding stream for a fund that is the Commonwealth’s primary tool for facilitating the redevelopment of contaminated properties.
  • Housing-Related Tax Increment Financing: Supports housing production in town centers by reforming a seldom-used local-only smart growth tax incentive program, removing onerous regulations, and allowing communities to set their own affordability requirements.
  • Housing Development Incentive Program (HDIP) Reform: Supports the development of market-rate housing in Gateway Cities by allowing credits to support new construction, and by raising the formula that sets housing development incentives.
  • I-Cubed Reform: Reforms the I-Cubed infrastructure program by removing unnecessary program requirements (such as eliminating the per-municipality cap on the number of projects that may participate and raising the aggregate limit of funds from the I-cubed program that may be used in any one municipality from 31% to 50%) building flexibility into the program, and aligning program requirements with the demonstrated project pipeline.
  • Economic Development Incentive Program (EDIP) Reforms: Builds accountability in the state’s primary job-creation incentive program by strengthening the link between the issuance of tax credits, and job creation that would not otherwise occur; adds flexibility to the incentive program by eliminating obsolete formula-driven incentive categories, and by creating a new Extraordinary Development Opportunity designation.

In addition, the bill creates two important provisions:

  • Site Readiness Fund ($25 million proposed capital authorization): Advances regional job creation by creating a new fund for site assembly and pre-development activities (including site assessment and cleanup) that support regionally significant commercial or industrial development opportunities.
  • “Starter Home” Zoning: Incentivizes the creation of smaller, denser, and more affordable single-family homes by creating a new starter home option under the Chapter 40R smart growth housing program. These projects will also allow the municipality to be eligible for school reimbursements under Chapter 40S.
  • Parking Management Districts: Aligns local parking policies with broader economic development priorities by enabling municipalities to opt into creating demand-based parking fees, and allowing parking fees to support capital improvements in designated districts, like downtowns.

In addition, there are new programs with a Massachusetts Innovation Initiative, Workforce Development, and Economic Competitiveness.

We are very supportive of the bill, which contains many of NAIOP’s priorities. This legislation will be one of NAIOP’s top priorities for the remainder of the legislative session.

Housing Costs May Cost Us Our Young Talent

This post originally appeared in the Boston Business Journal on November 20, 2015.

ApartmentsIn the coming years, the Massachusetts economy may be at serious risk. The Commonwealth’s most valuable resource is its educated, skilled talent. Maintaining that resource is essential for continued economic growth. However, there is a threat which is making that goal harder and harder to achieve. Massachusetts has one of the highest housing costs in the nation – a significant barrier for talent recruitment and retention. Without an adequate supply of workforce housing, Massachusetts may soon lose that talent to other, more affordable, markets.

The UMass Donahue Institute’s Population Estimates Program concluded that the state’s population will increase by nearly 300,000 over a 20-year period. Good news, but the population of Massachusetts grew only by 3.1 percent between 2000 and 2010, while the U.S. population increased by 9.7 percent. Of concern, the study also projects an increasingly older population for the state.

Though a good portion of Massachusetts’ growth is driven by a net natural increase (number of births greater than deaths), a larger share of the growth is attributed to net immigration. Looking more closely, there is a net domestic outflow of residents (more people moved out of Massachusetts than into it from other parts of the U.S.), offset by a large number of international immigrants.

This is occurring during a boom time for the Greater Boston region, while the rest of the country, with a few exceptions, is still working its way out of the recession. Another way of looking at it is that, for the past few years, there have not been many job opportunities attracting our younger workers away from the state.

It was not that long ago that most of the country was experiencing stronger job growth than Massachusetts. As documented in a 2003 University of Massachusetts/MassINC report, Mass. Migration, over 200,000 more domestic residents moved out of Massachusetts than moved into the state between 1990 and 2002. And then, between 2002 and 2004, that imbalance became worse.

Fortunately, at that time, foreign immigrants helped to offset these population losses, but they frequently arrived with lower levels of education and skills than those who were leaving. Those departing tended to be younger, better educated, and more likely to be employed in a knowledge-intensive industry.

These trends will have substantial workforce and business implications and should be a call to action. The costs of both rental and for sale housing have been accelerating, reaching record highs. More and more young individuals and families are being priced out of the market. In some cases, the problem is restrictive zoning, other municipalities are shunning any housing that increases the school population, and in some markets, the cost of construction makes workforce housing uneconomical.

The solutions may be difficult, political, and costly, but without action at the state and local levels, the future of the Massachusetts economy is at risk.

Bullet Trains for Boston?

photo
It’s an interesting time to think about investments in infrastructure, as the state legislature’s major transportation bill is now being finalized. As I experience Japan’s modern, expansive train system, I wonder what a bold transit plan for our Commonwealth, and the greater region, could do for our economic future?

For example, imagine a “bullet” train that travels, at least, 150 miles/hour (certainly, a far cry from our aging T fleet.) After years of hunting for an economic solution to our western region, what could a 30 minute commute between Boston and Springfield mean? Talk about an economic development engine that could also open up affordable housing alternatives!