Good morning friends, 

This is not a good time to own office buildings in our inner-western burbs.

And it’s certainly not the right time to be creating new office or lab space.

There is 4.3 million SF of vacant office space in the Route128-West submarket, plus another 1.5 million SF of available sublease space.  And it’s trending the wrong way, according to CBRE. 

Lab vacancy is worse, which may eventually add pressure on the office market as some owners will try to lease their lab space as office.

Which is why this happened this week

Northland Investment Corp appeared before the Newton City Council’s Land Use Committee this week (video) to propose modifications to its mixed-use project along Needham Street in Newton.

The Newton company’s new plan calls for eliminating nearly 200,000 SF of office space—not because they want to—but because there is absolutely no financially prudent or feasible way to move forward.

Instead, the focus of the already under-development 23-acre project will be on housing, retail and restaurants.

Northland’s proposed changes would:

• Reduce the number of buildings from 16 to 11.

• Shrink office space from 200,000 square feet to just 5,000 square feet.

• Reduce parking and adjust shuttle service to reflect the sharp reduction in office space.

• Add 22 residential units, bringing the total to 822 homes.

Land Use Chair Andrea Kelley opened Tuesday’s meeting by reminding the committee that they can only impose conditions on Northland’s proposed revisions, not reopen the entire project for review.

While the committee raised various questions, the one that seemed most critical to Northland’s success was whether councilors believed Northland’s evaluation of the office market was accurate.

Among the skeptics was Council President (and candidate for mayor) Marc Laredo, who stressed that he supported the project the first time and worried about lost commercial tax revenue.  Laredo also wondered if the property’s proximity to I-95 made the property more leasable for office than Northland was suggesting.

That’s despite Northland’s attorney Alan Schlesinger noting earlier in the meeting that among 22 office buildings within three miles of the site, the average vacancy rate is 31%, totaling over a million square feet of available office space.

Plus, knowing how many hoops Northland had to jump through to win approval the first time  (including more than three years of discussions, followed by a divisive referendum), going back before the city council again had to be the very absolute last thing the company wanted to do.

The discussions resume on March 25.

Could Bulfinch’s former Muzi property be next?

The Needham Observer is reporting this morning that the Bulfinch Companies could possibly be looking to follow Northland by rolling back plans for its 10-acre lab/office project at the former Muzi Motors property along I-95 at Highland Avenue

“Given limited activity in the market for suburban lab and office space, Bulfinch is exploring all options for the development of 557 Highland Ave., including a mixed-use possibility conceptually envisioned as a village-style community, complementary to both the neighborhood and town,” Robert Schlager, president of The Bulfinch Companies tells the Observer’s Peter O’Neil.

Schlager stressed that no request to change the project has been submitted.

Bulfinch purchased the 10-acre site in late 2021. As with Northland, the company endured a grueling battle and fierce neighborhood opposition to obtain its special permit in 2022.

Do I need to say this?

Both Newton and Needham wouldn’t be looking at the loss of millions in commercial tax revenue if Northland’s and Bulfinch’s projects weren’t delayed by years of public hearings and dragged-out deliberations.

Inaction has consequences, folks.

Grab bag

• At least two of the three candidates running for one open seat on the Wellesley Select Board will participate in a virtual business-focused debate hosted by the chamber on Feb.19 at 11 a.m. Candidates Michael Tauer and Odessa Sanchez have agreed to participate. The third candidate, Kenny Largess, tells us he’s considering whether to participate. The election is March 4.
  
  
• Newton’s Planning and Development Board voted unanimously on Monday to recommend the rezoning of 386-394 Watertown St in Nonantum. This 13-unit mixed-use development will now go before the Land Use Committee in the coming weeks.
  
  
• As of this past Sunday (Feb. 2)., accessory dwelling units under 900 square feet can be built by-right in single-family zoning districts across Massachusetts. The Healey administration estimates the law could lead to between 8,000 and 10,000 ADUs over five years.
  
  
• Newton’s Valentine Craft Crawl on Saturday (Feb. 8) invites participants to create heartfelt gifts and cards while exploring ten of the city’s creative businesses.
  
  
• The BC Heights spoke to two business operators who are opposed and one who supports Mayor Ruthanne Fuller’s proposal to convert a portion of the Newton Centre triangle parking lot into a public plaza.
  
  
• Congrats to Needham resident Mike Bello, the Boston Globe’s deputy city editor, who will receive the prestigious Yankee Quill Award for his personal impact on the betterment of journalism.
  
  
• Babson College is developing a 1–2-day program to help small and medium-sized businesses leverage AI for efficiency and innovation. Share your input and get a 20% discount by taking this brief survey.
  
  
• Congressman Jake Auchincloss is holding a Telephone Town Hall tonight (Thurs). to discuss the latest developments in Congress and answer constituent questions live. Join in at 866-756-5916.
  
  

Wellesley Square train station upgrades near completion

The MBTA has nearly completed work to make the Wellesley Square commuter rail station more accessible to individuals with disabilities, reports Bob Brown at the Swellesley Report.

New mini-high platforms will allow for level boarding at two cars of the train, with assistance from operators. The platform will be formally open in the spring.

The Wellesley Square project was made possible after Congresswoman Katherine Clark secured a $500,000 federal accessibility grant last year.

Still needing to be done and funded:  Accessibility upgrades at the Wellesley Hills and Farms stations.

Newton man joins mayoral race, makes housing top priority

A long-time Newton resident jumped into the race for mayor this week, pledging that his top priority would be to lower housing costs by constructing more housing.

Unfortunately for housing advocates in the Garden City wishing for a candidate to challenge City Council President Marc Laredo (who has strong support from the housing-resistant crowd in Newton), Josh Kraft is running for mayor in Boston, not Newton.

Kraft spent most of his life in Newton but moved to Boston in 2023.

So far, Laredo is the only declared candidate for mayor in Newton. Mayor Ruthanne Fuller is not seeking re-election.

Thanks for a wonderful Winter Celebration

Finally, it was wonderful to see 100-plus old and new friends (including state Reps. Steve Owens, Amy Sangiolo, and Greg Schwartz) at last night’s Winter Celebration at William James College.

We’re grateful, as always, to our title sponsor, The Village Bank, as well as our hosts at William James and caterer, Better Life Food.

We’ve just added a free evening networking event to our calendar (scroll down) and will be announcing many more events in the upcoming days.

And that’s what you need to know for today,  unless you need to know how snowflakes get their shape.

Be back soon.

Greg Reibman (he, him)

President & CEO

Charles River Regional Chamber

617.244.1688

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