0 Why Go To The Office? Few Want To — Some Need To

By Liz Neisloss | WGBH | July 20, 2020

Downtown Boston’s office buildings loom over urban canyons, now echoing with the occasional complaint of a seagull. It’s the third phase of reopening in the state — which allows offices to fill to 50 percent capacity — and these buildings are mostly empty because their usual occupants are staying away.

“I park underneath the Prudential Complex. It’s the second largest garage north of New York City. It’s a ghost town,” said Wil Catlin, managing director of Boston Realty Advisors.

Catlin, who heads the company’s downtown office leasing team, estimated that the majority of workers in Boston’s “urban core” — 82 million square feet of office space — haven’t returned.

“On a good day,” he said, his own Back Bay office is “maybe 18 percent” full.

Catlin said he thinks many workers are deterred by fear of coronavirus exposure during the commute.

“People might feel safe in the office at the Prudential Complex, but they don’t feel safe getting to the office. So that usually is the part that creates the most amount of anxiety for the commuter,” Catlin said. “They might be commuting on the commuter rail. They might be commuting on the subway. They might be commuting on a bus. That’s the fear.”

And once at the office building, there’s no more squeezing in the elevator like in the old days. Catlin described the process for a typical large downtown building.

“So if there’s four people to an elevator, each person has to face the wall,” he said. “It is a cumbersome amount of time just to get in the elevator and then just to get upstairs.”

But what if work can’t be done from the kitchen table? The greater Boston area has many scientists — what companies call “building-dependent workers” — who have had to return to their labs, for example. But even there, routines have changed.

Mandatory mask-wearing is just the start of the changes at Agios Pharmaceuticals in Cambridge. Inside the lobby, a security guard with a clipboard runs visitors through a brief health questionnaire to ask about any recent rides on public transport or exposure to anyone with COVID-19. Employees can use an app to self-report when they come in. All entrants then lean into a stand for a quick temperature check and a pump of disinfectant for their hands. Once through those steps, it’s one person at a time in their lobby elevators.

Agios develops medicines to treat cancer and rare diseases, and the majority of their employees are based in Cambridge, where lab scientists represent just over 10 percent of the workforce.

“We’re running experiments in support of the discovery of those medicines. And so in order to run those experiments, we need to be in the building. And those are really a critical part at the core of what we do as a company,” said Agios Chief People Officer Melissa Mclaughlin.

Before entering the lab, as always, rubber gloves go on, along with lab coats and goggles. Since masks are now required, the goggles are now anti-fog. But lab scientists are used to protective gear and precautions. The most dramatic change here is in how much time they can spend in the lab.

On a recent day, Bo Wang sat alone at the lab bench in what’s known as the “wet lab.” Wang is researching potential therapeutics for leukemia. He can now only work a half day at a time and leaves by noon so there’s no contact with the next shift. Wang says he feels safe at work, but he wishes he could stay longer.

“It limits the work we can do, but also I miss seeing the other people, seeing my friends and colleagues. I’m only seeing half of the people, unfortunately. So that’s probably hard, hard for our communication and science exchange,” Wang said.

In an adjacent cell culture lab, there are multiple stations, but researcher Gabrielle McDonald is solo. She’s studying the activity of genes as part of her cancer research. To an outsider, it appears to be work suited for one, but employees here describe research — which requires collaboration — as a “team sport.”

“It’s very different to have just me by myself or me and one other person. So, it’s really quiet. It’s hard to get used to. I kind of miss having other people around,” McDonald said.

As soon as they finish their allotted shifts, these scientists have to leave the office and continue work from home. Collaboration has shifted online.

“If you’re coming in to run an experiment in the lab, you come in and you run the experiment. You may write up that at home, you may do meetings when you get home to talk about the experiments. So really, what needs to happen at the building should happen,” McLaughlin said.

Outside of these specialized labs, the Agios offices are mostly empty. If employees can do their work from home, it’s still the preferred approach.

Dave Madson, director of workplace for design firm CBT, is familiar with the challenge of getting employees back to the office during a pandemic.

“For those that have started to go back, it is very slow and deliberate,” Madson said, “It really is quite a sparse and slow return.”

And until social distancing is no longer required, most companies won’t be able to fit more than 50 or 60 percent of staff in the office at a time.

“The idea of every person on a staff coming in at the same time until there’s a vaccine — it’s probably not going to happen for nearly every company. I think that would be quite difficult to achieve with the current guidelines and rules in place,” Madson said.

Madson looks at floor plans to see what measures are needed to create “a safe environment,” he said. Not surprisingly, this includes creating signage, estimating room capacities and knowing where sanitation stations are needed.

“One of the most onerous parts of this is really air filtration and fresh air ventilation that’s in many of these high-rises. That isn’t something where they can simply just turn up the fans or open the windows,” Madson said.

For now, it seems, whatever the work, there’ll be no gathering at the water cooler for office gossip. In addition to the physical changes at offices, Madson said, communication with staff and putting in place COVID-era rules are essential.

“There’s a lot of education that needs to happen,” Madson said, ”to make sure everybody is on the same page and what you can expect when you do come back to the office.”

The return to the office, he said, is “a sort of psychological experience” that workers need to prepare for.

0 Boston Construction And Design Efficiency

 

 

 

 

 

 

Boston, like many markets across the US, has been pushing for a more efficient and innovative way of developing. Technology is evolving, design solutions are being explored and the way we construct developments has evolved as a result. How are construction leaders and designers keeping the net-zero energy building goal by 2030 in mind? Can mass timber provide a solution that works across the market? What are design leaders doing to propel efficiency-based construction forward?

Join Bisnow and BRA’s Wil Catlin on July 23 along with Generate CEO John Klein, Consigli Construction Company Project Executive Matthew Tonello and Placetailor Director of Strategy Colin Booth for a discussion on how construction and design innovation is creating a more efficient Boston and what that means for developments tomorrow.

Our content will touch on:

  • New construction methods are being explored to maximize energy efficiency. What are these methods and how are they being used to create new developments?
  • How can mass timber be used to help create more sustainable developments?
  • Sustainability implementation has been largely driven by technology. How are designers and contractors utilizing technology to create more sustainable solutions?
  • How can investment potential and cost-savings be determined prior to breaking ground on a sustainable development project? What is the comparable value?
  • Net-zero energy building by 2030 is an initiative that has been widely supported by the industry. How do we get there and what resources are available to accomplish it?

Register HERE.

0 ‘We Were Way High’: Reality Of Phased Office Comeback Falls Short Of Landlord Expectations

Dees Stribling | Bisnow | July 14, 2020 

Office space has been open in Massachusetts since Phase 1 of the commonwealth’s reopening plan went into effect on May 25, but office workers and their managers aren’t rushing to return. That doesn’t mean they never will, just that the uncertainty is still too strong.

During the early days of the pandemic closures, the expectation was that reopening, when it occurred, would be a series of relatively quick steps up, Oxford Properties Group U.S. Head of Office Chris Mundy said on Bisnow’s Boston Office Update: Subleasing, Retail and the Evolving Market webinar last week.

Those steps would begin at perhaps 25% of pre-pandemic occupancy and then move up to 50% and 75%, Mundy said.

“Candidly, we were way high,” he said. “There’s really been caution among the office tenants in coming back.”

In Boston, the current total at Oxford Properties’ portfolio is about 5% of pre-pandemic occupancy, according to Mundy, who said the Canadian pension fund-owned Oxford saw similar numbers in New York and Washington, D.C. Rent collection for those offices is almost 100%, however, he added.

Uncertainty is the guiding factor in workers staying away, and it is still weighing heavily on forecasts for office owners like Oxford.

“There’s a lot of speculation about what the impact of the pandemic will be, but there’s a wide range of [possible] outcomes, so it is hard to make long-term decisions,” Mundy said.

Office workers who can work at home have adapted to the new reality, and until the coronavirus pandemic is under control, they don’t see any reason to work in an office — and their bosses don’t either.

That is true even in a state like Massachusetts, where the number of COVID-19 cases has flattened, as opposed to the spikes in places like Arizona or Florida. In early July, new cases in the Bay State totaled fewer than 100 many days, compared with well over 2,000 new cases per day during much of April.

Also, since mid-April, the seven-day average for the positive coronavirus test rate is down 94%, and the three-day average of hospitalized patients was down 84% Monday, according to the Massachusetts Department of Public Health. Earlier this month, the commonwealth rolled out Phase 3 of the reopening of the state’s economy. That phase isn’t about office space but allowed some kinds of retail, such as movie theaters and health clubs.

The reluctance to return to office space directly affects central business district retail and restaurants, which need office workers, but also students and tourists, Boston Realty Advisors Managing Director and partner Whitney Gallivan said. Boston is going to have a lot fewer of all of those for an uncertain while.

“Every retailer that we talk to, and every landlord that we speak to, is doing something different,” Gallivan said, adding that landlords are trying to keep the tenants they have if at all possible.

“The bottom line is that they’re trying to work together,” she said. “If you have to refill a vacant space, there’s not much activity out there. Some, but not enough to let these tenants go.”

Retail rental payment has been between 40% and 60%, with properties leasing to grocery stores and pharmacies toward the upper end of that spectrum, Gallivan said.

Though there are a number of possible outcomes to the current situation, and uncertainty is the norm for now, it is also probably a mistake to believe that all of the adaptations to the pandemic will be permanent, such as a majority of workers working at home full time, Mundy said.

He told the story of a tech tenant whose CEO was considering giving up on office space and going 100% remote, which would have been a loss for Oxford Properties. But it also would have meant a loss in cohesion for the company’s workforce, the CEO came to realize.

“The CEO started to share the idea with his senior team, and one of his top lieutenants said, ‘That’s great, I’m moving to Idaho.’ The CEO said, ‘I don’t know how I feel about that,'” Mundy said, and he rethought his plan.

Different aspects of the pandemic probably will stay, however, especially in the retail world, such as takeout windows or the convenience of having items brought out to one’s car, Gallivan said, noting also that online platforms are going to get stronger.

“It may be hard to go back to [having] to walk into the store, take my kid out of the car and go pick this up,” she said.

People will want to keep the alternatives they’ve gotten used to during the pandemic.

Surviving retailers and restaurants will come out of this period a stronger business, Gallivan said, since they will have learned practices that help the consumer.

0 Landlords and commercial tenants negotiate delicate deals with high stakes

By Tim Logan and Janelle Nanos | Boston Globe 

It’s a tale of two cafes, and a story that’s playing out all over town.

Nir Caspi owns Cafe Landwer, with locations in Cleveland Circle and Audubon Circle. Both opened in the last three years on the ground floors of new residential buildings. Both were doing well serving fine coffee, kebabs, and Israeli breakfast specialties before COVID-19, Caspi said, but business has suffered since the virus brought the economy to a crashing halt. He is confident one will survive. The other has been in limbo.

That’s largely because Caspi’s two landlords have taken different approaches to the crisis.

It is a delicate dance, with high stakes for all. Over the last four months, many restaurants and retailers have been engaged in seemingly endless negotiations with the owners of the buildings they occupy. Rent typically accounts for an enormous chunk of tenants’ fixed expenses, and with revenue scarce, they can’t pay it. But landlords have bills to pay, too — including mortgages, and property taxes — and some are accountable to investors. For them, it’s a matter of weighing a desire to be flexible with tenants against the need to meet financial obligations.

The fate of an entire generation of small businesses could be at stake in this fraught balance, the kind of places that collectively employ thousands of people and often help form the fabric of their neighborhoods.

“It can be a really touchy thing,” said Ann Earhart, co-owner of retail brokerage firm Boston Urban Partners. “There’s no one-size-fits-all here.”

Just ask Caspi.

At the Cleveland Circle cafe, his landlord is National Development, a prominent Boston builder that developed the South End’s Ink Block and other big projects that blend uses such as housing and retail. When the state urged people to stay home and ordered nonessential businesses to close, National came to him right away, Caspi saidIt offered a deal that allowed him to pay rent based on a percentage of sales instead of a fixed amount. He kept the cafe open as a result and has been taking a steady stream of orders throughout the pandemic.

“From day one they’ve been reaching out and asking us how we’re doing and how they can collaborate,” he said. “They’re taking the initiative to help me from their side and not waiting for me to beg for mercy.”

Caspi said his dealings with his landlord at Audubon Circle, which is a small, family-run real estate operation, were more challenging. When the shutdown began, he tried opening for takeout, but made only a few hundred dollars a day because the college students who frequented the cafe had departed. So he shut down for several weeks until outdoor dining in Massachusetts resumed. All the while, talks with the landlord, Chestnut Hill-based developer Dan Yu, were tougher, and more intermittent than those with National Development. Caspi said Yu encouraged him to apply for funding from the federal Paycheck Protection Program. Caspi did, and received some money. But as the months dragged on, Caspi worried about finding terms they could both agree on.

Last week, Caspi said, he finally reached a tentative agreement with Yu, who did not return messages from the Globe.

“I can understand he has a mortgage and he wants to pay the mortgage as well,” Caspi said. “We need to find the right way for both of us.

These types of talks are taking place all over Greater Boston as the pandemic and related economic crisis drag on. With their futures intertwined like never before, tenants and landlords are trying to sort out a changed relationship on the fly. Brokers and others involved in these rent discussions say the variables involved in reaching an arrangement are many.

How successful was the retailer before the crisis? How leveraged is the landlord? Is the store in a larger office or apartment building — where retail rent is a smaller piece of the bottom line ― or is it a storefront location where rent revenue is critical? Most important, and hardest to know: When might business return to normal?

“It’s so tenant specific. It’s really landlord specific, too, in terms of what a decision will be,” said Whitney Gallivan, managing director of retail at Boston Realty Advisors. “No one knows how long this might last.”

Some landlords, especially larger ones with deep pockets, are leveraging their size and resources to help tenants ride out the downturn.

WS Development, which owns shopping centers such as The Street in Chestnut Hill and Marketstreet in Lynnfield, is coaching vendors on how to build their own marketing campaigns. It also launched “Storefront Stories,” a social media campaign that highlights business owners and workers as their stores reopen.

“It’s a peek into their lives,” said Lindsay Binnette, director of field marketing at WS. “A way for people to share what they’re excited about in reopening.”

Samuels & Associates, which in recent years has redeveloped a huge swath of the Fenway neighborhood, is converting plazas into outdoor seating for restaurants in its buildings, and helping tenants navigate new permitting processes at City Hall. It has three people working full-time on lease negotiations with 70 or 80 commercial tenants, said president Joel Sklar. The goal is to reach deals that make sense for everyone — including Samuels and its lenders.

“These are really complicated discussions,” he said. “It’s got to be balanced and it’s got to be a partnership. That’s what we keep hitting on over and over.”

Samuels also operates several million square feet of office and apartment buildings in the Fenway, so while retail rents are important, they’re a relatively small piece of the firm’s financial pie. The company used to own more traditional shopping plazas — it built Dorchester’s South Bay in the 1990s — and Sklar acknowledges the math for the large mixed-use projects it oversees these days is quite different.

“We probably have more flexibility than a shopping center that’s 100 percent retail and probably has 80 or 90 percent of its tenants asking for rent relief,” Sklar said. “That’s a really big issue in the retail world, and not one with an easy solution.”

Indeed, many landlords aren’t being as flexible. About 50 percent of members of the Massachusetts Restaurant Association and the Retailers Association of Massachusetts said in recent surveys that their landlords have been unwilling to adjust rents. Given the state of the economy, that’s an unrealistic stance, said RAM president Jon Hurst. Even national retail chains only paid 68 percent of their rent in June, according to real estate data firm Datex Property Solutions.

“There needs to be a repricing,” he said, meaning lower monthly payments.

Tenants, especially major ones, can also play hardball. National chains such as The Cheesecake Factory and Starbucks have demanded rent breaks, or halted payments altogether during the pandemic. The Gap Inc., stopped paying rent when many of its mall stores closed in the spring, prompting lawsuits from two of the nation’s biggest mall operators — Simon Properties and Brookfield Property Partners — seeking tens of millions of dollars.

But many tenants and landlords say having a good working relationship — ideally, one that predates the pandemic and will outlast it — is essential to figuring out how to survive. John Pepper, cofounder of Boston-based burrito chain Boloco, said he has spoken for hours with landlords at his seven restaurants, trying to navigate a new world in which both parties’ business models have been upended. He’s noticed one consistent thread.

“The smaller the landlord, the more personal the conversation,” Pepper said. “We’re in a place where we need to figure this out together.”

That has also been Charlie Talanian’s experience. The longtime Newbury Street landlord, whose tenant base includes hair salons and small clothing stores hit hard by the coronavirus shutdowns, has logged a lot of time on the phone, trying to work out rent agreements. These are small-business people, Talanian said, just like him. Most have never skipped a rent payment, and they don’t want to now ― they just need time to rebound.

“So it’s, ‘Can you pay half? Can you pay a quarter?‘ ” Talanian said. “We’re all in this together and let’s assess the damage when we get to the other side. I can’t be successful if I don’t have tenants.”

0 Coworking Company Workbar Expanding to Boston’s South Shore

Coworking – Some are expanding while others are giving backspace.

By Connect Boston | June 26, 2020

Boston-based coworking company Workbar is expanding to Boston’s South Shore.

The firm will open its 10th area location at 101 Accord Park in Norwell on July 1. The 10,000-square-foot location is being developed by JEI Ventures. The space will be housed in an office building on Route 3.

Workbar currently has locations in Back Bay, Downtown Boston, Burlington, Arlington, Needham and Salem. The company has attempted to make members feel safe during the COVID-19 pandemic by adding sanitation stations as well as adding more private office space as compared to a mostly open floorplan.

0 Boston Office Update: Subleasing, Retail & The Evolving Market

 

 

 

 

 

 

The Boston office landscape, like many markets across the U.S, still has a lot of uncertainty. Occupancy is lower than expected, retail and restaurant tenants in office assets are being hit hard and subleasing is spreading. How are owners responding to the needs of a shifting market? Are they bailing tenants out financially? To what degree is office occupancy being impacted moving forward? What is being done to plan for the unknown?

Join Bisnow on July 9 along with Oxford Properties US Head of Office Chris Mundy and Boston Realty Advisors Managing Director and Partner Whitney Gallivan for an update on the Boston office market, where it is today and what it means for tomorrow.

Our content will touch on:

  • Are owners offering financial support to retail tenants?
  • Subleasing is on the rise nationwide. What does the rise in subleasing mean for the state of the office market today? Are your tenants doing the same?
  • What occupancy rate is the Boston market seeing and how does Boston compare to the other markets in the U.S?
  • How does the slower-than-expected return to office properties shape plans going into the fall? Will there be extensive interior changes or installations for more measures to ensure social distancing?
  • Coworking is heavily in question given the limited demand and inevitable decrease in density. How are coworking tenants faring and what kind of conversations are being had?

There will also be plenty of time for questions.

Register HERE.

0 8TH ANNUAL WALK FOR INDEPENDENCE (VIRTUAL)

 

 

 

 

 

 

 

 

 

 

Congratulations to The Carrol Center on their very successful Virtual 8th Annual Walk For Independence, raising $130,000 through the hard work and thoughtful commitment of many people.  Everyone at Boston Realty Advisors is humbled to have had the opportunity to support the Center this year!

ABOUT THE CARROLL CENTER FOR THE BLIND

ESTABLISHED IN 1936, the renowned Carroll Center for the Blind has been serving those with vision impairment for over eight decades; the organization is known nationally as a premier Vision Rehabilitation Center. Located just outside of Boston on a sprawling campus in Newton, Massachusetts, they proudly serve ALL ages and ALL stages of vision loss.

With the ongoing promise of improving the lives of people with vision-related problems, The Carroll Center for the Blind has pioneered many innovative services allowing people who are blind or have low vision to learn the skills to be independent in their homes, in class settings, and in their work places. Their services include vision rehabilitation, vocational and transition programs, assistive technology training, educational support, and recreation opportunities for individuals who are visually impaired of all ages. For over 80 years, the expertise of Carroll Center staff has provided help for thousands of blind and visually impaired persons with diverse opportunities for success and independent living.

0 Modular Construction Acolytes Think A Rebrand Is In Order

By Dees Stribling | Bisnow | June 30, 2020

New materials and digital technology are making modular construction a more efficient construction option than before, but there are still obstacles to its growth and acceptance. One of those is the term “modular” itself. The construction method needs a rebrand, experts say, to ditch some old and incorrect connotations.

“With the term modular, there are preconceptions of a double-wide going down a highway: less than attractive, subpar housing,” CON Architecture Practice + Design Team Leader Kendra Halliwell said on Bisnow’s Modular Housing for the Future webinar last week. “We’d like to get away from that with a rebranding. Perhaps saying ‘off-site’ or ‘volumetric construction.’ Anything that can be built in a factory counts as off-site.”

Moreover, “modular” barely does justice to how sophisticated the process can be, she said. In off-site construction, new digital tech is being applied to different facets, such as the design of the off-site components — the modules, the logistics of their delivery to the site, and the coordination of putting them together on site.

The acceptance of modular construction in the United States is still sluggish, even as it has been accepted in other parts of the world, such as Japan and Scandinavia. But with construction labor in short supply and the need for housing at all-time highs in Boston, the time and cost efficiencies offered by digitally enhanced modular construction, or whatever it could be called in the future, would help overcome those problems.

Modular construction can reduce construction costs as much as 20% and project time as much as 50%, compared to standard construction methods, according to a 2019 McKinsey & Co. report, “Modular Construction: From Projects to Products,” which also serves as a guide to the role that modular can play in the future of construction.

The technique has caught on in other parts of the world, but a misperception of low quality still lingers around modular — falsely, the report says.

“The construction industry as we know it now hasn’t changed in hundreds of years,” Halliwell said. “It’s incredibly inefficient. Off-site construction is a way to build more efficiently. We could take care of this housing shortage if we could disrupt this industry, and change the way we work and the way we build.”

The other speakers joining Halliwell on the Boston-centric webinar cautioned that off-site construction isn’t a panacea for the ills plaguing construction in Boston or many other American cities, but rather a useful tool to improve the industry.

“Off-site construction is not necessarily a silver bullet for costs, schedules or supply considerations,” Berkeley Investments Development Project Manager Paul Goodwin said. “Still, it’s something that has a lot of promise to address a lot of different issues.”

Building components in a factory instead of on an open-air construction site helps control costs and schedules and can make a more sustainable and consistent product, he said.

“Can it do all of those things for all projects?” Goodwin said. “No. It needs to be assessed on its merits on a project-by-project basis.”

With off-site construction, the opportunity exists to apply the principles of mass production to the Boston housing industry, GreenStaxx Director Hans Hawrysz said. The key principles for going forward with the technique are standardized design, integrated production, replication and continuous improvement.

“Buildings are no longer constructed on-site,” he said. “More and more, they are assembled. The more you do it, the better you get, and the more productive you get. It reduces cost and increases profitability.”

The quality of off-site manufacturing of construction components is also better than that of traditional construction, Hawrysz said. Quality control and inspections are much easier, and the process is also more sustainable.

The off-site process is suitable for more than just low-rise properties, Goodwin said. High-rise structures built using the process exist, made of both steel and wood. The tallest modular building in the country was built in Brooklyn by Forest City, before it was acquired by Brookfield. The tallest in the world, two 40-story apartment buildings in Singapore, opened last year.

“We’re looking at a project now that’s a steel-and-concrete high-rise,” Halliwell said. “Each project is a little different.”

The process also needs an integrated team to make it effective, Hawrysz said. Since it involves a manufacturing process, the construction team needs a lot more coordination upfront.

“That also eliminates some of the rework down the road,” he said. “Much of rework is caused by imprecise documentation, so everybody needs to get together upfront.”

As many possible advantages as off-site represent, there are also challenges beyond the connotations of calling it modular, the speakers said. From the perspective of an owner, for example, there is some risk of having to rework an off-site component, Goodwin said.

“If you aren’t confident that things are designed and constructed the way that they are intended to be, then on-site rework is a real risk — and more laborious and later in the process,” he said.

Another challenge for the off-site process is while it can be much more efficient in the time it takes to build, getting access to the manufactured materials in a timely way isn’t always a given, Hawrysz said. That is especially a consideration in New England, where building material supply is constrained compared to other parts of the country.

0 Microsoft stores in Mass. to permanently close

Microsoft is stepping out of the retail game with plans to close its stores.

Microsoft (NASDAQ: MSFT) lists a total of 72 stores in the United States, with three mall locations in Massachusetts: Boston’s Prudential Center, the Burlington Mall and the Natick Mall.

By Drew Hanson | Boston Business Journal | June 26, 2020

Microsoft Corp. is closing its physical retail stores around the world.

The Redmond, Washington, technology company said Friday it would permanently close all of its stores, with the exception of locations in New York City, London, Sydney and its hometown. Those stores will be reconfigured as “experience centers.”

Microsoft (NASDAQ: MSFT) lists a total of 72 stores in the United States, with three mall locations in Massachusetts: Boston’s Prudential Center, the Burlington Mall and the Natick Mall.

The company had not reopened any of its Microsoft Store locations since the onset of the Covid-19 pandemic in March. Retail employees will move into roles serving private consumers, small businesses, education and enterprise customers, according to Microsoft’s announcement. They will work remotely or out of corporate facilities.

With the closure of the stores, Microsoft said there would be a renewed focus on online sales.

“We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere. The evolution of our workforce ensured we could continue to serve customers of all sizes when they needed us most, working remotely these last months,” Microsoft Corporate Vice President David Porter said in a statement. “Speaking over 120 languages, their diversity reflects the many communities we serve. Our commitment to growing and developing careers from this talent pool is stronger than ever.”

The permanent closures will result in a pretax charge of about $450 million, according to Microsoft. It will be recorded in the current quarter, which ends June 30.

0 The Future of Office Amidst Covid-19

 

Wil Catlin was a panelist on a recent  webinar discussing the future of office amidst COVID19 from both asset management and acquisition standpoints.

Key topics include:

  • Flex-space and Space-As-A-Service feel highly relevant, yet how can they survive new health requirements?
  • Will tenants downsize and relocate to minimize costs? Or will they create grand offices that are branding exercises to draw people back together?
  • What are asset management teams doing to protect portfolios in this C-19 environment?
  • What solutions are available for elevators?
  • How much will operating costs increase?
  • How are sector benchmarks or metrics shifting to meet the new Covid-19 reality?
  • In future, will an employer’s location matter less, and if so, what does that mean for the office sector?

If you missed it – check out the webinar recording here.