Author Archives: Wil Catlin
0 CRES Stats Report | Week Ending September 26
34 spaces hit the market as available in the last 7 days, equating to 200,000 SF
Only 8 spaces (over 1,000 SF) came off the market 83,000 SF
Boston’s “Seaport District” is an 8.7mm SF market with some of the world’s top companies (Fidelity, Amazon, VERTEX, State Street to name a few). Today’s availability rate here is a whopping 21%! That equates to 1 of every 5 buildings being vacant
The availability rate stayed about the same as last week at 12.0% equating to 14,900,000 SF.
0 Foundation Kitchen Leases 5,723 SF at The Graphic Lofts in Charlestown
Charlestown, Mass. – Foundation Kitchen, a shared culinary workspace, co-founded by husband and wife team, Ciaran Nagle and Tara Novak, has signed a 5,723 square-foot lease to open a new culinary production and dining destination at The Graphic Lofts in Charlestown MA.
This new location, located directly across the street from the MBTA’s Orange Line Sullivan Square Station, will feature a café, wine bar, and food stalls which will be open to the public seven days a week. The space will also feature an ongoing roster of cooking classes, special events, and culinary pop-ups served from a shared kitchen. Foundation Kitchen is scheduled to open in the first quarter of 2021.
The lease for Foundation Kitchen was negotiated by Stephen Pleines from Eastern Land Company on behalf of the tenants, and Joe Wagner from Boston Reality Advisors on behalf of Berkeley Investments, which owns and developed The Graphic Lofts.
Berkeley has long recognized the value of placing innovative food and beverage concepts in rapidly growing neighborhoods. Young Park, president of Berkeley Investments, is credited with introducing Barbara Lynch to the Fort Point neighborhood in 2008 by offering the company’s FP3 residential building as home to Drink, Sportello and Menton. Likewise, Park persuaded the award-winning culinary team of Row34 to bring their seafood restaurant to Berkeley’s loft rental project at 381 Congress Street in the same neighborhood. Park says, “The addition of Foundation Kitchen to The Graphic Lofts and the community of Charlestown is a home-run for everyone involved. The concept is one that will appeal to multiple audiences who are essential to the neighborhood including residents, nearby workers and commuters. The unique concept meets a variety of needs in the market, and we know it will be incredibly popular when it opens.”
Kevin Longo, Berkeley’s Asset Manager, also adds that the Foundation Kitchen model is a well-suited amenity for the building and its residents: “It will bring the community together by offering a unique hyper-local food and beverage experience with ever changing options from a diverse group of talented small businesses. It’s the type of concept that excites our residents and community members, and perfectly supports their urban lifestyle.”
From a food and beverage standpoint, plans call for Foundation Kitchen to offer breakfast, lunch and dinner menu items, along with craft beers and wine, either to-go, or for in-restaurant dining through their cafe and wine bar. Owner Ciaran Nagle says the market and location are prime for this type of carry-out dining option, especially for those that reside above Foundation Kitchen in The Graphic Lofts, and those that live nearby in Hood Park and Charlestown. He says, “The impacts of COVID-19 have put more focus on carry-out and at-home dining, and our business model was set-up perfectly for that well before the pandemic adversely impacted the restaurant community. Given this shift and increased demand for more healthy, local grab-and-go dining options, takeout and delivery have skyrocketed in popularity, as customers seek creative alternatives to cooking at home night after night.” Nagle says Foundation Kitchen members will offer creative culinary packages like family-style meals, curated make-at-home meal kits, farmers’ market delivery services, and wine-and-food pairings.
Those who choose to dine in Foundation Kitchen’s Food Hall will experience indoor and outdoor spaces that take their design cues from the local neighborhood, “which is rich with creativity and innovation,” says Kevin Cromwell of Cromwell Consulting, a food service consulting firm that helped design and layout the space. “Our goal was to create an environment that allows quality culinary entrepreneurs a place to flourish.”
Likewise, Rashmi Ramaswamy, lead architect of SHED Studio, and designer Jack Cochran, were inspired by The Graphic’s industrial elements and the important work that Ciaran and Tara are doing to support diverse, local entrepreneurs. They both thought about the establishment’s namesake – a “foundational” kitchen – and created a space that celebrates the building’s architecture, while also connecting guests to the places and landscapes where food comes from. Ramaswamy and Cochran agree: “With abundant plantings, a warm, atmospheric mural, and exposed brick and massive wood beams, the marketplace will unite the public and global cuisines together to create a space that’s both transportive yet also very much part of the history and evolution of Charlestown.” All of the parties involved are committed to creating a space that follows COVID-19 CDC and State of Massachusetts health guidelines.
In addition, as a family-owned-and-operated business, Owner Tara Novak says Foundation Kitchen will fill a void by providing a space that’s inspiring to other small to mid-size food companies. “We presently have one boutique shared commercial kitchen located in Union Square, Somerville and we’re excited about this new location opening in Charlestown,” she says. “This shared kitchen concept is licensed for shared-use food production, and multiple other businesses may operate from our new kitchen at The Graphic. All member companies working out of our space have their own licenses, insurance, and certification, and either work from their own designated studio space or from their own pre-scheduled space within the shared kitchen.”
Foundation Kitchen already has close to twenty members who cite multiple reasons for using shared kitchen space including the lack of commercial kitchen space in the Boston metro area, the cost of incurring long-term leases, and the large overhead costs associated with a commercial kitchen facility. Novak adds, “We take care of all of those elements by providing a facility where companies can come in and focus on their core business – making and selling food that customers enjoy and appreciate. We also work very hard to curate a community of like-minded businesses within our facilities, creating a place where owners and employees can network, while supporting, mentoring, and motivating each other.”
Adam Dziki of Wild Fox Pierogi, a Foundation Kitchen member since 2017, looks forward to being a part of the new space at The Graphic when it opens in early 2021. Dziki says, “Wild Fox serves delicious cuisines inspired by our Polish and Portuguese heritages. We’re also a family owned business and we look forward to offering lunch and dinner options that are packed with flavor, including our signature ‘Bigger than Babcia’s’ scratch-made pierogi, as well as soups, sandwiches, salads, and more.”
0 The CRES Stats Report | Week Ending September 18
Fall is starting in Boston and the market is back to shedding space, post Labor Day. 23 spaces hit the market as available in the last 7 days, equating to 225,000 SF
18 spaces (over 1,000 SF) came off the market 230,000 SF
Broker incentives increasing!; in a bid to drum up activity, many buildings are offering $1,000 showing bonuses and some offering 3.0% fees (which add up when doing larger deals in expensive buildings)
The availability rate creeped up again to a new high of 12.0% equating to 14,900,000 SF.
0 Amazon plans to hire over 650 people in Mass., mostly in Stoughton
Amazon.com is again hiring in Massachusetts.
The Seattle-based e-commerce giant (Nasdaq: AMZN), already one of the largest employers in Massachusetts, is expecting to add more than 650 full-time and part-time jobs in the area, according to spokesperson Stephanie Cortez. She added that Amazon has hired for 15,500 full-time and part-time jobs in Massachusetts.
The majority of the new positions will be based in Amazon’s fulfillment center in Stoughton, according to Cortez. Amazon also has fulfillment centers in Holyoke, Everett and Fall River.
“I think that’s just an area that we have noticed that we’re able to meet our customer demand and can really focus in on serving in the greater Boston area within Massachusetts,” Cortez, a New York City-based public relations manager with Amazon, said about Stoughton.
Cortez added that the new roles are part of Amazon’s operations network and its delivery partners, so they are not corporate roles. Pay starts at $15.25 per hour with opportunity for bonuses and career advancement.
The local hires are part of an international hiring spree for more than 100,000 jobs throughout the U.S. and Canada in Amazon’s fulfillment and logistics network. The additional recruiting effort is not related to competitor Walmart Inc. (NYSE: WMT) launching its own membership program later this week, according to Cortez. Instead, it has to do with the upcoming holiday season.
“We’re really looking to gear up for the holiday season and visitation for high customer demand,” Cortez said.
The 650 new positions are separate from the 1,800 new Massachusetts roles that Amazon announced in April, according to Cortez. Cortez did not provide a breakdown of full-time versus part-time roles, but added that hiring has kicked off on Monday.
Separately, Boston planning officials last week recommended against an Amazon warehouse in the neighborhood of South Boston, citing planning guidelines for the stretch between the Broadway and Andrew Red Line MBTA stations that would not fit with the proposed warehouse renovation. Cortez declined to comment on the move.
0 The CRES Stats Report | Week Ending September 11
Similarly quiet week on its face to last week for additional added spaces as 29 spaces hit the market as available in the last 7 days, equating to 105,000 SF;
7 spaces (over 1,000 SF) came off the market ~18,000 SF
127– 129 Newbury Street has a new leasing company – BRA!
Just across the “Salt & Pepper” Bridge in Kendall Square/East Cambridge (a small – but powerful – 4.1MM SF market) the vacancy rate (again, for office) is 9.1%, with a paltry 320,000 SF of available space if you know the right people!
Shockingly, the availability rate SPIKED to 11.6% equating to 14,800,000 SF.
0 Brokerage CEO Advises Industry to Make the Technological Leap
By Connect Media | September 4, 2020
Boston Realty Advisors’ Jason Weissman says the future is now, and brokers in both the residential and commercial space need to be ready for it. “Silicon Valley is catching up to the real estate industry,” he writes in Fast Company.
He notes that over the past decade, more than $30 billion has poured into the proptech space, “a new generation of startups at the intersection of property and technology.
As the owner of the largest independent real estate brokerage and advisory firm in Massachusetts, I have been studying the brokerage industry for 25 years,” writes Weissman. “I’ve seen aspiring disruptors come and go. This time is different.”
Brokers and agents will need to make the technological leap, Weissman writes. In order to do so, “they need to recognize that every real estate transaction will ultimately begin and end online.
“Today, unicorns such as Zillow and Redfin are redefining and leading the consumer experience of search by creating new platforms for buying, selling, and renting homes,” he continues. “These tech companies are a wake-up call for real estate agents to reinvent or die.”
However, Weissman says it’s not all doom and gloom. “While proptech will ultimately bring all listings online, real estate agents are still critical for the most important part of the purchasing process: advisory service,” he writes. “If all politics is local, that is doubly true for real estate. Even the most tech savvy buyer or seller can benefit from the counsel of someone with market knowledge about individual neighborhoods.”
Further, Wissman observes, “The pivot from conventional practice to digital efficiency has created new business opportunities for real estate agents with sharp analytical skills who understand how to translate data into palatable information. While technology narrows the gap, proptech is still in its infancy, with a lot yet to learn.”
That being the case, Weissman cautions, “The real estate agents and brokerages who survive and thrive in the coming crunch will be those who embrace technology, not fight it.”
0 CRES Stats Report | Week Ending September 4
A very quiet week for additional added spaces, probably due to the end-of-Summer vacations, only 14 spaces hit the market as available in the last 7 days, equating to 43,000 SF.
4 spaces (over 1,000 SF) came off the market 18,000 SF.
Analyzing the data, there are 149 contiguous blocks of space in the subject area between 10,000 & 20,000 SF available. There are also 130 contiguous blocks of between 20,000 & 60,000 SF.
The availability rate keeps climbing, now at 11.5% equating to 14,100,000 SF available – a new high during the C19 period.
0 Will Silicon Valley put real estate brokers out of business?
A real estate CEO explains why traditional brokerages must “reinvent or die.”
By Jason S. Weissman | Fast Company | September 2, 2020
Silicon Valley is catching up to the real estate industry. Over the past decade, more than $30 billion has poured into PropTech, a new generation of startups at the intersection of property and technology.
As the owner of the largest independent real estate brokerage and advisory firm in Massachusetts, I have been studying the brokerage industry for 25 years. I’ve seen aspiring disruptors come and go. This time is different.
It’s an open secret that real estate, the world’s largest asset class, has also been one of the slowest industries to adopt new technologies. In fact, a recent KPMG survey found that only 58% of real estate companies have a digital strategy in place. The current situation leaves the field wide open to innovation—and disruption.
Startups like Hemlane and Eden are streamlining property management services. Landis acquires homes as investment properties, then allows tenants to “rent to buy” when the company’s underwriting algorithms deem renters are qualified to purchase. Bowery automates the traditional manual process of appraising commercial properties with a data-driven platform and mobile app. As PropTech continues to infiltrate the real estate industry, the conventional brokerage community will need to embrace innovation if it wants to stay in business and remain competitive.
In order for brokers and agents to take the technological leap, they need to recognize that every real estate transaction will ultimately begin and end online. Today, unicorns such as Zillow and Redfin are redefining and leading the consumer experience of search by creating new platforms for buying, selling, and renting homes. These tech companies are a wake-up call for real estate agents to reinvent or die.
For example, StreetEasy and Matterport have reduced the friction costs of finding an apartment rental. A sophisticated renter can avoid an upfront fee and still find her dream apartment with ease. This experience is one example of many where we see real estate consumers embrace technology and the benefits that it offers.
The question, of course, is how far will tech get us? And is there still a role for people in this digital revolution?
The answer isn’t all doom and gloom for America’s two million real estate agents. While PropTech will ultimately bring all listings online, real estate agents are still critical for the most important part of the purchasing process: advisory service. If all politics is local, that is doubly true for real estate. Even the most tech savvy buyer or seller can benefit from the counsel of someone with market knowledge about individual neighborhoods.
The value of expertise, after all, is timeless. Davy Greenberg said it best in a viral tweet: “If I do a job in 30 minutes it’s because I spent 10 years learning how to do that in 30 minutes. You owe me for the years, not the minutes.” For now, there is no suitable replacement for the time-tested insights of brokers with access to hyperlocal data.
Be that as it may, technological progress is relentless. Real estate brokerages and agents should pay attention to this wakeup call or become obsolete.
The pivot from conventional practice to digital efficiency has created new business opportunities for real estate agents with sharp analytical skills who understand how to translate data into palatable information. While technology narrows the gap, PropTech is still in its infancy, with a lot yet to learn. As the tech editor Chris Nuttall wrote in the Financial Times, “For all our fears about artificial intelligence becoming far too clever—as it uses machine learning on huge data sets to give it superhuman powers—people are thankfully still pretty good at making AI look like an idiot.”
Despite the need for human dexterity, it is undeniable that the future of the real estate brokerage business will revolve around the instantaneous application of data. From leads to listings, we live in a digital world. Consequently, it’s imperative for real estate agents to combine their accrued market acumen with new technology in order to be a trusted resource and effective advisor.
We are at a crucial juncture within the history of the brokerage industry that will test the survival of every real estate agent. The rise of automation and artificial intelligence will continue to propel the growing dominance of tech-powered players. As a result, PropTech will likely drive down transaction costs and eliminate jobs. The real estate agents and brokerages who survive and thrive in the coming crunch will be those who embrace technology, not fight it.
Jason S. Weissman is the CEO of Boston Realty Advisors, the largest independent real estate services firm in New England.
0 CRES Stats Report | Week Ending August 28
FINALLY, the onslaught of new space slowed (a bit), but still totaled 39 spaces, with +258,000 SF hitting the market as available in the last 7 days, similar to the numbers in July & early August.
11 spaces (over 1,000 SF) came off the market (66,000 SF) but again, some of that is sublease space converting to direct.
Need 5,000 – 7,000 SF? No problem, there are 227 options for you in 126 different buildings. That’s a long day of touring!
Sadly, we easily crested 14,000,000 SF available now – a new high – equating to a +11.4% availability rate.