Turn to page B1 for Banker & Tradesman’s monthly coverage of all things commercial real estate.
THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS
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County close-up: Essex Spotlight: Essex
IN PERSON
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As executive director of the Black Economic Council of Massachusetts, Segun Idowu has managed to find a silver lining in the coronavirus pandemic: It has brought diverse organizations together to assist business owners during the crisis.
WEEK OF MONDAY, JULY 27, 2020
COMMERCIAL REAL ESTATE BY THE NUMBERS
51.6 acres Major developers have made at least 51.6 acres of covered land plays in recent weeks. See Steve Adams’ story on this page. Source: The Warren Group
2.8 million square feet Newton has 2.8 million square feet of Class A and B office space. See Jay Fitzgerald’s story on page B1. Source: Newmark Knight Frank
$7 billion
P AT I E N T C A P I TA L
LAND DEALS REFLECT CONFIDENCE IN
BOSTON’S STAYING POWER
Greater Boston saw almost $7 billion in commercial real estate transactions so far this year. See Steve Adams’ story on this page. Source: Real Capital Analytics
5 years It could take five years for the Boston hotel sector to regain its momentum. See the column by Rachel Roginsky and Sebastian Colella on page B6. Source: Pinnacle Advisory Group
1 million square feet Mark Development is proposing a 1 million-square-foot development in Newton. See Jay Fitzgerald’s story in page B1. Source: Mark Development
$11 billion $11 billion has been spent nationwide on office properties in Q2. See Steve Adams’ story on this page. Source: Real Capital Analytics
400 There are plans to add 400 beehives to the Hobbs Brook Waltham campus. See Sam Schaefer’s column on page B4. Source: Hobbs Brook Management
0 percent Newton saw no increase in the total value of its commercial properties between 2008 and 2018. See Jay Fitzgerald’s story on page B1. Source: Camoin Assoc.
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.
Covered Land Plays Bet on Long-Term Value BY STEVE ADAMS BANKER & TRADESMAN STAFF
F
ood wholesalers, a construction material manufacturer and a suburban athletic club are all living on borrowed time on sought-after local real estate parcels eyed for major developments. The recent sales of properties including the 19-acre Widett Circle in South Boston and 26-acre Alewife Park in Cambridge
set the stage for new commercial clusters to take shape in emerging development hotspots. Such covered land plays, in which investors acquire a site with existing tenants, can be attractive to developers waiting to assess how COVID-19 affects future real estate demand and uses while still receiving a steady stream of rent. But they come with their own set of risks, ranging from unknown permitting outcomes to uncertain outlooks for future uses. “Do you take down a building that’s got cash flow, or do you keep it?” said Carlos Febres- Mazzei, managing principal of Boston-based developer Quaker Lane
Capital. “It depends on the profile of the investor, and where they see the [future] rents. That can be very subjective.”
Long-Term Upsides
Recent high-profile redevelopment site deals totaling over $283 million in South Boston, Watertown and Cambridge follow a steady stream of acquisitions in similar neighborhoods such Allston-Brighton and Somerville’s Union Square, where industrial and manufacturing companies have sold their longtime home bases to institutional investors envisioning higher rentpaying uses such as lab space. Continued on Page 7
THE HOUSING SCENE
PERSONAL CONNECTIONS
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How to Create a Video Tour By Lew Sichelman | Special to Banker & Tradesman
Residential Real Estate PAGE 3
COVID-19 Showcases Challenge of Building Digital Loyalty By Diane McLaughlin | Banker & Tradesman Staff
Banking & Lending PAGE 9