0 Tenants Returning to Boston Offices Will Find A Strange New World

By Dees Stribling | Bisnow | April 27, 2020

Most Boston commercial space is now empty, but the time is approaching when many or most workers return, perhaps in shifts or only a few days a week.

Property managers are already trying to sort out the transition, speakers on Bisnow’s health and safety in property management webinar Thursday said. The details of bringing people back into commercial space in an orderly and safe way aren’t clear. One thing is clear: It won’t be easy.

Most space in Downtown and in Cambridge is empty, with commercial occupancy below 5%, though occupancy is higher than that in a few pockets, such as life science space, Lincoln Property Co. Vice President of Property Management Scott Rickards said.

“We’re planning for re-occupancy at some point after May 4,” Rickards said. “Could be sooner, we hope. We’re fielding an increasing amount of questions every day from tenants about what they can expect.”

Personal responsibility is going to be critically important to making re-occupancy work, Rickards said.

“We all know people who go to work sick, and that’s what we really can’t have,” he said. “Every company has to be responsible for its employees, and every individual responsible for themselves.”

The focus now, EBI Consulting Director of Environmental Health & Safety Karla King said, is how company policies can evolve to address the future re-entry. Some companies have specific issues, such as those needing to deal with COVID-19 cases at their buildings, while others are simply trying to devise forward-looking planning.

“We’re working closely with some of our clients, evaluating current housekeeping and programs and getting an understanding of high-touch and common spaces,” King said.

In the case of a building with a suspected COVID-19 case, each instance is evaluated based on when it happened and how isolated the space is, King said. Then her company works with the client to identify or evaluate a cleaning company, looking closely at its cleaning products and protocols.

Even without a COVID-19 case, tenants who plan to return need to formulate detailed plans, King said.

“What PPE are people going to be bringing or wearing to the office, mandated by state or federal officials, or by their own choice?” she said. “Where are they going to dispose of their PPE?”

Boston Realty Advisors Managing Principal Wil Catlin, who moderated the webinar, asked whether some landlords will have stricter requirements regarding PPE than others.

“At some level, there needs to be baseline standards,” he said.

PPE use will vary according to the use of the space and how much common space there is, King said, adding that common areas and high-touch spaces are going to be the biggest areas of concern for property managers.

“That’s one thing to communicate to tenants: the importance of everyone controlling their space,” King said.

Property managers can’t be responsible for the cleanliness of every specific desk or other personal area, King said, since it is largely out of their control. Instead, they will be more concerned with common spaces, such as gyms, cafeterias, restrooms and reception areas.

Catlin also asked about security procedures in a post-pandemic environment, specifically how buildings will handle front desks and check-ins. Technology is a longer-term answer to security, Rickards said, and some Class-A buildings probably already have the tech in place to go touchless.

“There are some apps that work with security systems so that your phone has a unique identity, and you can walk into the building, and it knows your app,” Rickards said.

But most Boston real estate doesn’t have that kind of sophistication yet, he said. In many small lobbies, social distancing won’t even be possible.

“So there will be a lot of workarounds, and that’s going to extend the need for PPE,” Rickards said. “You’re going to need to have a mask on, and maybe gloves. Can we come up with a way to show an ID so that no one else touches it? It might be a rudimentary as the security guard doing all the writing. It’s going to be complicated.”

0 Boston’s TAMI Office Market Requires Quick Turn-around

Office space at WeWork in Boston Seaport on Atlantic Ave.

Credit: Bisnow

Two years to three months. This is that the lead time TAMI [technology, advertising, marketing and information] tenants are working with when they are in-market, looking for office space. Given this, Landlords needs to offer spec suites for immediate occupancy to accommodate the market opportunity.

Here’s a remark from Colliers International Executive Vice President Kristin Blount in Bismpw, on the velocity of current real-estate transactions:

“Tenants used to be in the market way far in advance of a lease expiration or their renewal notice time period,” [Colliers International Executive Vice President Kristin Blount] said. “Because their business is changing more rapidly than before and the newer kind of TAMI [technology, advertising, marketing and information] tenants make up a lot of growth, the speed to market and need to move quickly is something that is really important to them.”

Additional information is available on Bisnow’s website, here.

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0 Modern Office Tenants Redefine how Commercial Buildings are Measured

Building Owners and Managers Association International logo

Credit: Boma

Why are office building measurements getting redefined? In short, buildings are creating more common areas and outdoor amenities to accommodate today’s tenancy. The changes put forth this past October by the Building Owners and Managers Association (BOMA) International are designed to account for the way young talent is seeking out and utilizing outdoor space – like rooftop terraces, balconies, etc.

From Seeking Alpha:

“The 2017 standard really reflects the changes that are happening in the marketplace,” BOMA International Chair Rob Brierley told VTS. He’s also an executive vice president at Colliers Boston. “There has been such an increasing demand for well-appointed exterior amenities like balconies, covered galleries and finished rooftop terraces. If the tenant is taking advantage of it, the rationality is they should also now include it as part of the rentable square footage… It’s a more clear and accurate representation of how tenants are actually using space.”

“Over the last decade, the amenity packages that folks are asking for is changing so quickly,” Brierley added. “Today if you don’t have a roof deck or patio, you’re definitely at a disadvantage in many ways…. The reality is if you go out to any building that has a patio or roof deck, everybody’s using it. It’s not just the millennials. It really has been an extension of their respective offices, which is one of the reasons this change has occurred.”

0 Boston Harbor Cruises repositions itself as water shuttle

Alison Nolan. Boston Harbor

Image CreditL Boston Magazine

It doesn’t depend whether you are a regular in Boston or a tourist, getting around can be time consuming. Boston Harbor Cruises is positioning themselves to enhance their service offering by adding more water shuttle and taxi services throughout Boston Harbor. Most notably from North Station to the Seaport.

A lyrical snapshot from Boston Magazine describes the company, noting “Boston Harbor Cruises was founded in 1926, with a single boat rented by a West Ender named Matty Hughes, [Alison] Nolan’s great-grandfather. He offered sightseeing cruises along the Charles, coaxing his neighbors off the sweltering stoops of their apartment buildings for a cool trip up the river. The boat rides, which cost 10 cents, were a welcome treat on a hot day, even though the waters reeked of sewage and trash. Somehow, the filth didn’t stop Hughes’s new business from growing. He expanded his fleet and set up shop on India Wharf in the 1940s, adding tours to an even less desirable spot—the sludge-filled depths of Boston Harbor. If customers could brave the stench, they’d kick back while chugging past scenic landfills, including the one that used to be on Spectacle Island.”

Boston Magazine’s profile of Boston Harbor Cruises is available, here.

0 Evolving Office Real Estate Trend Shaping Boston Workspaces

Shared London office space

Credit: Bisnow

Some tenants now use a model where they lease less space and rely instead on on-demand conference room and meeting space. This model changes the square foot requirements per office worker, and has become a great resource for small to mid-sized office tenants.

From Bisnow:

These shared office spaces provide “temporary meeting space, conference rooms and event space to companies that would traditionally have leased or rented that space through their landlord. The goal is to offer employers a temporary solution on a need-by-need basis, giving office occupiers more flexibility to pursue cost-saving initiatives such as shrinking their square footage.”

One of the reasons these third-party space providers are gaining popularity within the industry is because they offer more than mere space — they provide hospitality services and create an experience that users would not otherwise get.

0 Boston Has Long Been an Innovation Hub

Boston has been innovating for centuries. Its prowess, formulated with the race to build the first underground community powered by electricity, laid the groundwork for innovation to come.

As noted by PBS, “it was Boston — a city of so many firsts — that overcame a litany of engineering challenges, the greed-driven interests of businessmen, and the great fears of its citizenry to construct America’s first subway.”


You can read more on this historical feat on PBS.org
.

0 Self-driving Cars Create Employment Opportunities for Individuals with Disabilities

Self-driving car in the street of Boston and Cambridge

Credit: Boston Herlad

Self-driving cars, who’s technology in part is being created and tested in Boston, will offer the nearly 2 million individuals with disabilities new employment opportunities.

From the Boston Herald:

In a study released by the Boston-based Ruderman Family Foundation last week, researchers found self-driving cars would dramatically improve the lives of disabled residents by making it easier and cheaper for them to travel — especially to and from a job.

“Approximately 2 million individuals with disabilities would have new employment opportunities,” the study said. “New transportation technologies have the potential to help those with disabilities enjoy the activities that those without disabilities take for granted.”

0 Boston Self-driving Cars Hit Roadblock

Self-driving car in Boston

Credit: Boston Globe

There is no easy ride for the self-driving car industry. Legislation is looking to dramatically put the brakes on this.

A recent Boston Globe article noted Representative Tricia Farley-Bouvier, a Pittsfield Democrat, and Senator Jason Lewis, a Winchester Democrat unveiled “a measure that would set statewide rules for the testing and use of autonomous vehicles…Among other provisions, the bill would mandate that all self-driving cars weighing under 8,500 pounds be zero-emissions vehicles, and require their operators to pay the state 2.5 cents for every mile they travel. Only freight and emergency autonomous vehicles could drive more than a mile without a passenger.”

Additional details on the battle between self-driving auto producers and state legislators is available on the Boston Globe.

0 Boston: The Footwear Capital

Converse office space in Boston

Credit: The Daily Astorian

The roster of footwear brands with a headquarters or significant presence in Boston is vast and celebrated:

  • Converse
  • Reebok
  • New Balance
  • Converse
  • Wolverine
  • Saucony
  • Keds
  • Sperry
  • Rockport
  • Clarks
  • Puma

From The Daily Astorian:

“These companies cluster because they’re primarily looking for talent. You want to be where the people are,” said Matthew Powell, a sports industry analyst for the NPD Group, a New York-based market research firm. “They’re also trying to stay close to their consumer. Millennials are clustering in large cities, so it’s a great way to be plugged into where your consumer is.”

The moves also affirm New England – historically the nation’s footwear-making region – remains a viable center of the industry, said Nate Herman, a senior vice president at the American Apparel & Footwear Association trade group.

0 Mass Leaders Head to Israel for Economic Development Mission

Gov Baker

Credit: BBJ

Greater Boston offers a platform that is unrivaled for emerging companies compared with other U.S. cities. 56 leaders from Massachusetts will be headed to Israel to promote Boston as the hub for business’ ecosystem. The leaders cover education, government, cyber security, digital health, venture capital and other business’.

According to the Boston Business Journal, “the summit is the marquee event of the Economic Development Mission to Israel Gov. Charlie Baker announced in September, his first overseas trade trip since taking office. By showing off two of the state’s thriving industries, the delegation aims to convince expanding Israeli tech companies to choose Boston as the location for their first U.S. headquarters.”

Additional information is available on the BBJ website, here.