The DL Report - Fall 2015 (1)

NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY

Featured Article

Intelligent Machines and the Future of Work

As seen in NAIOP Development Magazine

By Dale Dekker, AIA, AICP, Dekker/Perrich/Sabatini

How will artificial intelligence and robots impact commercial real estate?

THE FUTURE IS COMING sooner than you think.

Climate change, extreme weather, rising seas, drones, driverless cars and trucks, 3-D printing, global unrest, space junk, terrorism, drought, fracking and, now, artificial intelligence (AI) and robots all will have big impacts on commercial real estate (CRE) in years to come.

Peter Sondergaard, head of global research at Gartner Research, predicted at the technology consultancy’s 2014 annual symposium that “… one in three jobs will be converted to software, robots and smart machines by 2025.” Others estimate that as many as half of the jobs in the U.S. will be performed by robots and AI machines by that year. A 2014 study from the Pew Research Center asked 1,896 experts if “networked, automated, artificial intelligence (AI) applications and robotic devices [will] displace more jobs than they have created by 2025?” Half of those polled said robots will add more jobs for humans than they will displace, while the other half said the opposite. These results suggest that the potential implications of AI on employment, the workforce and CRE are not yet clear.

Other key findings from the Pew study provide the following insights: • Reasons to be hopeful: People will adapt to these changes by inventing entirely new types of work, and by taking advantage of uniquely human capabilities.

• Reasons to be concerned: The nation’s education system is not adequately preparing students for the work of the future, and its political and economic institutions are poorly equipped to handle the hard choices that will have to be made.

The Big Question The “big question” in this scenario, then, is what will 33 to 50 percent of the workforce be doing in 2025 if its current professions have been supplanted by AI? One can only begin to speculate about the future impacts on CRE. Robots can work 24/7, 365 days a year. Will this drive demand for more space, or less? How will suppliers, supply chains and warehouse distribution systems adapt and change? Will it become more competitive for industry to bring manufacturing back to the U.S., once the cost advantage of cheap labor disappears and supply chain reliability and the cost of transportation from far-away lands are factored in?

Consider how driverless cars and trucks — which should increase the efficiency of the transportation system — will impact human behavior and infrastructure design. How will they affect land use patterns based on moving people long distances between work and home? Will millions of people continue to commute each day? What will happen when a manufacturing facility that previously employed 1,000 people can be managed and operated by 70, with robots cranking out products 24/7?

How will these changes impact the ways people design, build and rebuild cities and workplaces?

Continue reading >

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY

Event Recaps

Leadership Lunch + Learn @ 101 Seaport Submitted by Chloe Louise Bouscaren of CBT Architects.

On Wednesday, Nov 9th NAIOP hosted a Leadership Lunch and Learn at 101 Seaport Boulevard, the new home for PricewaterhouseCoopers, a multinational professional services network. PwC relocated 3000 employees from 125 High Street to Boston’s Seaport District. Shawn Hurley, the Executive Vice President and Regional Manager of SKANSKA USA Commercial Development hosted NAIOP on the building’s 7th floor, the only space that has yet to be leased. Shawn was joined by Charley Leatherbee, VP of Development, Levi Reilly, Director of Development, and Patrick Sousa, Manager of Development, who all played important roles in the success of this high-profile project.

The newly constructed 17-story, 440,000 RSF, LEED Platinum state-of-the-art office building was developed

by SKANKSA USA Commercial Development Team in Boston. Highlights included a chilled beam mechanical system, triple glazing curtain wall, 300 underground parking spaces, world class retail by WS Development, expansive views of the harbor and Seaport, conference and training centers, and virtually column free floorplates. 82% of the building is occupied

by PwC, tenants Red Thread and Skanska will be joining them soon. NKGF’s Dave Martel and Bill Anderson are responsible for the leasing and deal negotiation.

Located on what will be the new Seaport Square Green, 101 Seaport connects directly to Fan Pier Park, creating a continuous public space that reaches Boston Harbor and connects to the Harborwalk Grand civic lawn to support active recreation and public events.

QUICK PROJECT STATS

SKANSKA is also currently working a neighboring 17-story office tower, 121 Seaport, as well as Watermark Seaport, a 300-unit residential complex both on neighboring parcels.

Project Duration 26 months

For those who have yet to hear Shawn’s presentations on SKANKSA’s developments in the Seaport and beyond, his confidence and presence is unparalleled.

Shawn has an innate way of making an audience feel comfortable and that day, we all felt we were part of something big. SKANSKA is clearly making development history in Boston and Shawn and his group are leading that charge the titans of the real estate industry. Hats off gents.

Project Cost $290M

PwC Employees 3,000 (20% more people in 12% less space) Design Firm Jacobs Engineering Group Read this entire article and see more photos on the blog.

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY

Cocktails + Conversation: The Rebirth of Public Food Markets Submitted by Katie Grimes of Red Thread, and Sarah McGillicuddy of Acentech.

With its mission to provide fresh, healthy food to consumers of all income levels, nourish our community, and educate the public about food sources, nutrition, and preparation, the Boston Public Market was home to NAIOP’s Developing Leaders and guests on Thursday, November 12th to discuss the Rebirth of Public Food Markets.

The panel was comprised of Elizabeth Morningstar, CEO, Boston Public Market; Amy Prange, Vice President, Colliers International; Lauren Shurtleff, Senior Planner, Boston Redevelopment Authority; and moderator Yanni Tsipis, Senior Vice President, Colliers International. They shared insights into their vision to repurpose and re-energize the public and privates spaces that make up 100 Hanover Street.

The Public Market is a permanent, year round venture that features fresh, locally sourced products from over 35 vendors within New England. What makes this market unique is its unwavering commitment to local agricultural partners making the Boston Public Market the only completely locally sourced, year round market of its kind in the United States.

So while an avocado or citrus you may never find in Boston’s Public market you can buy in confidence knowing you are getting the freshest ingredients amiable while simultaneously supporting our local economy!

Vendors have the opportunity to take on a one year lease; the purpose of these short term agreements was to give the public market an opportunity in its infancy to identify successful vendors, patterns, as well as provide opportunity for new partners, and keep the market diverse and fresh.

Elizabeth was quick to remind the audience that in the winter months, using only locally sourced ingredients, will test the vendors and the market.

However, through innovation, such as renting their space for corporate events and providing fun cooking classes the Boston Public Market is thinking one step ahead.

Given the site’s precarious location as the ground floor of a mixed use building and underneath the building – highway ventilation towers, a portion of the Haymarket MBTA Station (green and orange lines), a parking garage, and office space occupied by the RMV a cohesive and copasetic project team was critical. The loss of basement made the drainage and utility components of the project a logistical puzzle that the project team collaboratively solved with the best results!

In an effort to showcase Bostonian’s commitment to revitalize the old market, guests were taken back in time with images of the 1800’s and 1950’s. Where once Interstate 93 was neighbors to the Boston Public Market now stands the Rose Kennedy Greenway, MBTA, Haymarket and Massachusetts Registry of Motor Vehicles. In addition to learning that vendors will rotate year after year to ensure the authenticity of the Boston Public Markets’ mission, there is no basement within the space and there is one, count ‘em, one loading dock.

QUICK PROJECT STATS Designer/Architect Architerra General Contractor Lee Kennedy Co Inc.

Speaking to the potential concerns raised by the adjacent external Haymarket vendors prior to the launch of the Boston Public Market, Elizabeth Morningstar was delighted to report that the Haymarket actually performs better with greater sales volume with the BPM in place than without it.

Additionally, Elizabeth was cautiously optimistic to report that at present the Boston Public Market is outperforming its anticipated revenue goals.

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY Developing Leader Spotlights What is your favorite building or development project in Boston?

The revitalization of Downtown Crossing. Although not one particular project, my favorite development project is the area’s transformation inclusive of multiple projects of which I have enjoyed being a part of.

What would we find playing on your radio in your car or on your phone?

A mix of everything from Steve Windwood to Steel Pulse.

How do you commute to work and how to you pass the time during your daily commute?

Train or drive. Listen to NPR and WBZ 1030 to get up to speed on what I missed overnight.

Matt Godoff

Director, Asset Management Synergy Investments

People would be surprised to know that...

I love to cook and have a passion for the grill.

Learn more about Matt > What upcoming NAIOP events are you most looking forward to?

The holiday party December 10th and the ski trip in January.

What advice would you give to new members of NAIOP? Take advantage of the many opportunities to network with industry colleagues and get involved in a committee. The committees afford you the venue to help influence the organization and meet more people.

If you could learn to do anything, what would it be?

Tough question. There’s a lot I would like to learn. How about, how to get a deal on a condo in this crazy market?

Derrick Goodwin

What is your dream vacation location?

My dream vacation would not be one location, but many. Probably island hopping throughout the Caribbean or South Pacific Ocean.

Business Development Manager Margulies Perruzzi Architects Learn more about Derrick >

Lauren Vecchione Vice President Colliers International

What motivated you to get involved in Commercial Real Estate?

I was a finance major at Providence College, going into my Senior year and was looking for a finance internship in Boston. I reached out to my now boss, Ron Perry who is President of Colliers to see if he would make a few introductions for me. He ended up asking me to intern with Colliers that summer (then Meredith & Grew). I didn’t know anything about commercial real estate and thought it would be a good experience to learn about a different industry. I spent the summer shadowing Kristin Blount, Senior Vice President at Colliers who quickly became a mentor to me and someone I knew I wanted to be like and work with. I ended up getting a job offer from Colliers a year after I graduated.

What business tips or advice can you share with others?

Always be authentic and trust your instincts.

What is your favorite restaurant or bar in Boston?

Il Panino in the North End. They have the best food!

Learn more about Lauren >

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

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Leader Profile

Steve Marsh

Managing Director MIT Investment Management Co.

Steven Marsh is the Managing Director of Real Estate for the Massachusetts Institute of Technology Investment Management Company and currently serves as the 2015 NAIOP Massachusetts President.

Besides being the 2015 NAIOP Massachusetts President, what are some achievements in your career that you would like to highlight?

I have been very fortunate to serve two incredible institutions during my career at Children’s Hospital and MIT. I have personally witnessed so many friends and family struck with personal tragedies like cancer, brain disease or injury, or other devastating challenges. Places like MIT and Children’s Hospital are making extraordinary progress in eradicating these human challenges.

They represent hope for all of us. I have been privileged to help support these great institutions through my real estate and investment activities over the past 30 years.

How do you decompress after a long day at work?

When I can, I love taking long walks with my wife.

It’s a great way to catch up, stay healthy, and eliminate the stress.

Which project are you most proud of?

I am fascinated by the concept of clustering talent to enhance collaboration and innovation. It’s the surest pathway to helping solve the world’s most difficult problems. I first saw it at Children’s Hospital where clinicians and researchers would regularly exchange powerful ideas over coffee in the lobby that would lead to great discoveries. In the last 16 years at MIT, I have had the opportunity to work with others in planning and implementing a growing innovation cluster surrounding campus.

It is a constant work in progress, but I am very excited to move forward with our newest mixed use development in the heart of Kendall Square that will knit the entire innovation district together. Once again, it’s the same powerful exchange of ideas that occurred at the Children’s Hospital coffee shop, just this time it is at a much more impactful city scale.

Anything else you’d like to add?

I am very excited about the Developing Leaders program at NAIOP. It is wonderful to see so many young and talented people create extensive networks early in their careers. Our Developing Leaders are making life long relationships and learning from each other along the way. Keep up the great work, meet all of your colleagues, learn everything you can, and then make a positive impact!

What is your all-time favorite place that you’ve visited?

I have been fortunate to travel much of the world in my business and personal life. I’ve been all over the United States, and have seen much of Europe and Asia. I never tire of exploring new places, but I’ve discovered that my “favorite places” are the ones I shared with my family or friends. Hiking, biking, and exploring vineyards throughout Napa and Sonoma was a recent favorite. I’m hoping to repeat it soon in Tuscany.

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

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Crane Watch THE DISTRICT BURLINGTON Building 700, Burlington, MA Projected Completion: January, 2017 Size: 54,000 sq. ft. of new office space Summary: A significant office space addition has begun at to building 700 at The District Burlington, where state-of-the-art workspace will be constructed at the front of the building and at the terminus of the main campus drive, which will give the end of the street enhanced definition and improved presence.

Developer: National Development Architecture and Interior Design: Elkus Manfredi MEP Engineer: RDK Structural Engineer: McNamara/Salvia Landscape Architect: CRJA Landscape Architects Construction Manager: Cranshaw Construction Leasing Broker: Jones Lang LaSalle “Our work at the District Burlington is taking an existing property and flipping it around 180 degrees to transform it into an urban-style destination that you wouldn’t typically find in the suburbs. We look for opportunities where we can create the most value instead of just investing in the next hot neighborhood and riding the wave. And not only do we make sure these properties are performing financially; they also have to be managed day to day “ – Andrew Gallinaro, National Development ONE SEAPORT SQUARE Buildings B&C, Boston, MA Projected Completion: Mid 2017 Size: 1.1M sq. ft.

Summary: The design includes a unique mix of residences, shops, restaurants, cultural and office space.

Specifically this will consist of 832 apartment units, 250,000 sq. ft. of retail, and 775 parking spaces. It is a place for people to live, play, and work and it is the largest urban redevelopment project in New England.

Developers: Boston Global Investors, The Berkshire Group, WS Development Architecture and Interior Design: Elkus Manfredi MEP/FP, LEED, Security & Tel/Data: Cosentini Associates, Inc. Structural Engineer: McNamara/Salvia Landscape Architect: Reed Hilberbrand LLC Construction Manager: John Moriarty + Associates Civil Engineer: Nitsch Engineering, Inc. “We really believe this project is going to change the face of Boston in terms where people want to spend their time. It will start the creation of a new shopping district in the city.” - Dick Marks, WS Development “The views from this project are second to none, and the design and construction will be the highest quality the city has ever seen. As the seaport matures, it will be in a better position competitively because of the retail and other uses under construction.” - John B. Hynes III, Boston Global Investors “The retail will add immeasurably to the living environment there. It’s the best location in the seaport.”

- Stephen Wood, The Berkshire Group

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY

Developing Leaders News

New DL Members RACHEL BANDI ALLIE BARRETTE SUSAN BRASH MARCUS CANTU ROBERTO CORDERO RICHARD CLARK MICHAEL D’ANGELO JAMES FEASEY JOANNE FRECHETTE LAUREN HARVEY TIMOTHY HARVEY JACKIE HUBER ASHLEY JENSEN SAM JOHNSON MATTHEW JONES KEVIN KAVANAUGH PAUL KELLY KAITLIN KINCAID MATTHEW KLEIN BENJAMIN KNOTT SEAN NAUGHTON JOSHUA ROSENFIELD JOSEPH PETRUCCI MICHAEL PETRUCCI IAN PICKRELL STEPHEN STEWART BART TOCCI MICHAEL VIDEIRA

Rockland Trust The Bozzuto Group WB Engineers Copley Wolff Design Group, Inc. CBRE/New England Dalton & Finegold LLP Michael D’Angelo Landscape Architecture Corning Optical Communications Visnick & Caulfield Associates, Inc. Colliers International Manafort Precision Cathartes Environments at Work Oxford Properties Group DiCicco, Gulman & Company LLP HSBC Bank USA, N.A. Janitronics Building Services Keller Augusta Partners AEW Capital Management Griffith Properties Synergy Investments Rose Realty Partners, LLC Structure Tone, Inc. Creative Office Pavillion John J. Flatley Co. Nordblom Company Tocci Building Company DiCicco, Gulman & Company LLP

DID YOU KNOW? Log in to the ‘My NAIOP’ section of the NAIOP Massachusetts website, to update contact information, add social media links, see upcoming committee meetings, pay bills, and more!

Next Meeting The next DL Committee meeting is Thursday, December 17 at Colliers International (160 Federal Street, Boston) from 8-9 AM. Click here to RSVP >

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NAIOP MASSACHUSETTS

FALL 2015 ISSUE

THE DL REPORT THE LATEST IN CRE FROM THE DL COMMUNITY

Upcoming Events DECEMBER 9 Government Affairs Roundup DECEMBER 10 NAIOP Annual Holiday Party DECEMBER 15 Power of Place: 2015 Annual Meeting Luncheon JANUARY 21

Hotels Disrupted

JANUARY 29

5th Annual NAIOP Ski Day

View all upcoming events >

Hot Off the Hill New Statewide Building Code - Listening Session this Month, Public Hearing January 12 On Tuesday, December 8 the Board of Building Regulations & Standards will hold a listening session where members of the public can express feedback on the draft.

NAIOP Representing Industry on DPU Task Force - Feedback Needed NAIOP is now representing the industry on a newly created Department of Public Utilities task force designed to discuss (and potentially reform) the current processes used by utilities to provide new services, specifically to commercial projects.

NAIOP Advocating for Changes to MassDOT Access Permit Regulations NAIOP was deeply involved in the development of the access permit regulations (720 CMR 13.00) back in 2007. Unfortunately, based on extensive feedback from NAIOP members, it appears that the regulations are not being adhered to in any consistent way.

NAIOP Stormwater Subcommittee - Meeting This Week NAIOP has created a stormwater subcommittee in response to the numerous stormwater issues affecting the industry.

Legislative Update - Informal Session Until January The legislative session runs from January 2015 - July 31, 2016, though the Legislature is now in informal session until January (only unanimous votes can move forward during informal session). Once 2016 begins, the Legislature will kick into high gear until the end of July.

Read entire Government Affairs Update >

Job Board Are you hiring?

Members can post jobs for free on the NAIOP Massachusetts Job Board.

Need a job?

The NAIOP Massachusetts Job Board is a free resource for all members of the CRE industry. You do not have to be a NAIOP Member to search or apply for positions.

Contact Rachel with any questions >

2015 Developing Leader Annual Sponsors

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