Writer: Eleana Teran
2 min read November 2023 — As transformative trends reshape Boston’s real estate landscape and its impact on the region’s quality of life, industry leaders shared insights on the evolving challenges and opportunities at the Invest: Boston 2023-2024 Launch Conference.
Presented by JD Chesloff, president & CEO of Massachusetts Business Roundtable and moderated by Joe O’Malley, principal at LGA, LLP, the panel, titled “Building Bay State: Greater Boston’s changing real estate landscape and how the built environment impacts workforce and quality of life,” included insights from Peter Evans, executive vice president and managing principal at Hunneman; Kate Dineen, CEO of A Better City; and Gregory Janey, CEO of Janey Construction Management. These leaders shared their insights on the transformational trends and challenges facing Boston’s real estate sector.
Chesloff opened the session by highlighting the state’s competitive edge in technology, innovation, and education. Highlighting the economic challenges, he noted, “Massachusetts is expensive for living and doing business. CNBC ranked us 49th for business costs and 47th for living costs mainly due to housing prices.” He stressed the need to balance economic growth with the management of living costs.
The conversation delved into the complexities of the real estate market, particularly in the context of post-pandemic shifts. Evans outlined the state of downtown Boston’s office market, expressing concerns about high vacancy rates and the slow return of the workforce to offices. “We’re seeing an all-time high vacancy rate of just under 18%, about 50% of the workforce is returning to offices daily,” he said, highlighting the need for patience and innovation in revitalizing the commercial real estate sector.
Similarly, Janey brought attention to the diversity of projects in Boston’s construction landscape. “We’re seeing more projects of diverse nature because of the diverse use. Mixed-use projects are becoming more prevalent,” Janey observed, highlighting the evolving nature of construction projects in response to market demands. He also discussed the variety and scale of upcoming projects. “The size hasn’t really changed, we’re seeing more projects of diverse nature because of the diverse use,” he noted, pointing to a trend towards mixed-use developments and the need for flexibility in project planning.
Dineen brought to light the pivotal role of transportation and infrastructure in shaping the real estate landscape. Discussing the Downtown Residential Conversion Incentive Pilot Program, she stressed the significance of such initiatives in facilitating housing projects in downtown Boston. “Transportation access and infrastructure are also critical. The city is advocating for improved transit services vital for transit-oriented development,” Dineen explained, tying the success of real estate development to the efficiency of public transportation systems.
The discussion also touched upon the socioeconomic impacts on communities relying on a thriving downtown. Dineen remarked on the necessity of creative thinking within the business community to attract people downtown. “It’s really about activating our streetscapes, what kind of programming we’re providing, and policy decisions about the future of work and return to the office,” she said, underlining the interconnectedness of vibrant downtown areas, business activities, and community well-being.
As the conversation concluded, the overarching sentiment was one of cautious optimism. While the panelists acknowledged the challenges ahead, they remained hopeful about the region’s ability to adapt and thrive amidst change. As Chesloff put it, “Together, we can continue to make this city and state wonderful places to live, work, and do business.”
For more information visit:
https://www.maroundtable.com/
https://www.lga.cpa/
https://www.hunnemanre.com/
https://www.abettercity.org/
https://janeyco.com/
To watch the whole panel discussion, click Here!
https://www.youtube.com/watch?v=7I2hedRvSRE
https://www.youtube.com/watch?v=7I2hedRvSRE
