0 Boston Neighborhoods and Beyond

 

 

 

 

 

 

 

As markets across the U.S. adjust to the new normal, developers and investors are looking for development opportunities outside of major cities, and Boston is no exception. Neighborhoods like Newton or Waltham are seeing a surge of investment during the pandemic. Why now?

Join Bisnow, Patrick Mulvhill, SVP of Leasing at Boston Properties, Ginger Dhaliwal, co-founder & chief product officer at UpFlex, Jay Hirsh, CEO of Jumbo Capital Management and Stephen Murphy, partner and principal of acquisitions at Campanelli highlight development and investment in Boston’s suburban markets and whether or not this migration will last.

Questions to be discussed:

  1. What are the reasons to look to the suburbs right now for development and investment opportunities?
  2. How does transit support demand for potential developments currently underway?
  3. Where can investors receive the largest returns and which asset class?
  4. What are tenants looking for in these emerging areas?

How are suburban schemes funded and scaled?

Watch webinar HERE.

0 CRES Stats Report | Week Ending August 7

CRES Stats Report | Week Ending August 7

Interesting stats from the past 7 days: sublease & direct – in all cases temp space excluded,  in Mass Ave to the Seaport, South to North Station

  • 35 spaces (over 1,000 SF) hit the market as available equaling 235,000 SF, much more than last week and one of the highest in the past 4 weeks;
  • 11 spaces (over 1,000 SF) came off the market (62,000 SF) which has been consistent over the past month;
  • The vacancy rate in ALLSTON/BRIGHTON is 10.9% and the availability rate is 13.0%, MUCH better than many other areas of the city (albeit this is a relatively small office market);
  • The total availability STAYED ROUGHLY THE SAME at 11.2%.  I think there is a gap in the data (in addition to the lag in information bubbling to the surface) with deals happening on shadow space and relets that are not “visible” to the brokerage community.

0 CRES Stats Report | Week Ending July 31

CRES Report Week Ending July 31, 2020

Continuing the trend 43 spaces (over 1,000 SF) hit the market as available equaling 180,000 SF, much less than last week, but typical for many of the weeks over the past 4 months;

13 spaces (over 1,000 SF) came off the market (56,000 SF) which has been consistent over the past month, many of these spaces are merely going to direct available from a previously listed sublease;

Quarter To Date net absorption is -139,000 SF and Year To Date absorption is -985,000 SF.

The Office VACANCY RATE in Cambridge (“ride the Red Line from Alewife to Kendall”) is 5.5% with 3.9% sublet availability, for a TOTAL AVAILABILITY of 9.4%.

0 CRES Stats Report | Week Ending July 24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Office stats from the PAST 7 days: (sublease & direct – in all cases temp space excluded) in Mass Ave to the Seaport, South to North Station

  • 39 spaces (over 1,000 SF) hit the market as available equaling 300,000 SF, a 4X increase over the last week;
  • 14 spaces (over 1,000 SF) came off the market (~57,000 SF) averaging only 4,000 SF per suite;
  • Charlestown’s (21 buildings, ~2.4mm SF) vacancy rate is 16.8% and it’s availability rate is 17.7%
  • There is currently 2,800,000 million square feet of sublease space available in the subject area;
  • The total availability STAYED ROUGHLY THE SAME at 11.2%.

 

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 Boston Co-Living Update

 

 

 

 

 

 

Finding an affordable apartment in a convenient location in Boston can be a challenge. Co-living has appeared on the CRE scene as an affordable alternative to the traditional multifamily set up, but many remain unfamiliar with this concept. However, as Boston’s workforce presence grows and the demand for affordable apartments in central locations rises, it’s time for co-living to be taken seriously.

While developers can see co-living’s potential to provide returns, several questions about the future of this unique concept remain. Are shared spaces the next solution for affordable housing? Will the pandemic impact interest in this housing alternative? What does this mean for new development and mixed-use options?

Join Bisnow on June 30 along with Arx Urban Principal Benjie Moll, Kin CEO Britt Zaffir and Common Director of Real Estate Charlie Boutwell for a discussion moderated by Boston Realty Advisors Founder & Senior Partner Jason Weissman on co-living and what it means for Boston multifamily.

Our content will touch on:

  • How does co-living present a long-term solution for affordable housing options in the inner city?
  • How will co-living open the door to multifamily investment for young professionals?
  • How might co-living evolve in response to the pandemic? Will density be more of a focus?
  • What amenities are owners offering co-living properties?
  • What is the leasing landscape for co-living? Are Boston residents responding to this option?

There will also be plenty of time for questions.

Register HERE. 

0 Modular Housing For The Future

 

 

 

 

 

 

Join Bisnow tomorrow, June 23 along with ICON Architecture Associate Principal and Practice + Design Team Leader Kendra Halliwell, GreenStaxx Director of Business Development Hans Hawrysz and Berkeley Investments Development Project Manager Paul Goodwin for a discussion moderated by Boston Realty Advisors Managing Director and Senior Partner Will Catlin as they explore modular construction, what it could mean for Boston and how recent developments can innovate housing moving forward.

Our content will touch on:

  • What does modular construction mean for the bottom line, project timeline and consistency? Why are some missing the mark?
  • What solutions does modular present for TOD and affordable housing?
  • How are leaders overcoming the challenge of limited manufacturing options and supply chain?
  • How does modular construction compare to traditional methods? What are the advantages?

What is the investment return potential for modular developments in comparison to traditional projects?

Register HERE.