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THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS
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County close-up: Hampden Spotlight: East Longmeadow
Mark Development is changing the landscape of Newton’s Washington Street corridor and set to accelerate the transformation of Boston’s Kenmore Square. The Wellesley real estate development firm founded by Robert Korff in 1990 is moving ahead with three major projects in Newtonville and West Newton.
IN PERSON
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WEEK OF MONDAY, FEBRUARY 10, 2020
BANKING AND LENDING BY THE NUMBERS
FA S T T R A C K
LAB DEVELOPERS
$361 million The volume of commercial real estate loans Eastern Bank originated in Q4. See Diane McLaughlin’s story on page 9. Source: Eastern Bank
LIV
BUILD AHEAD OF THE MARKET
Florence Bank launched a new marketing campaign with an ad during Super Bowl LIV. See Week on the Web on page 2. Source: Florence Bank
$55.691 billion The volume of commercial real estate mortgages originated in Massachusetts in 2019. See Diane McLaughlin’s story on page 9. Source: The Warren Group’s Marketshare Module
6.76 percent TD Bank holds 6.76 percent of the single-family mortgage market in Hampden County. See By the Numbers on page 6. Source: The Warren Group’s Marketshare Module
$20 million Many industrial projects in Greater Boston have required less than $20 million in financing. See Diane McLaughlin’s story on page 9. Source: CBRE
$6.86 million The mortgage, provided by The Village Bank, on second home on in this week’s Gossip Report. See page 9. Source: The Warren Group
9,600 The number of commercial real estate mortgages originated in Massachusetts in 2019. See Diane McLaughlin’s story on page 9. Source: The Warren Group’s Marketshare Module
$114 million Mass Mutual provided $114 million in mortgage financing for the purchase of the former Necco factory in Revere. See Week on the Web on page 2. Source: Atlantic Management
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.
Turnkey Spaces Seek to Establish New Clusters BY STEVE ADAMS BANKER & TRADESMAN STAFF
C
ommercial landlords trying to capture soaring demand from rapidly growing life science startups are increasingly building out lab space on spec in the hopes of catalyzing the next life science cluster outside of East Cambridge. The spec suite movement allows the tenant to avoid paying potential multimillion-dollar fit-out costs upfront, while
spreading slightly higher rents over the duration of the lease. Companies can spend more of their funding on scientist salaries, rather than real estate, as they conduct clinical trials and pursue FDA approvals. And landlords can make back their investment in building upgrades by luring life science companies that pay higher rents than office tenants, even attaining higher rents than comparable lab space in exchange for the ability to help a tenant expand their operations in weeks, not months when a wave of venture capital funding rolls in. “They are selectively building out spaces on a spec basis ranging from 3,000 to 30,000
square feet and everything in between,” said Eric Smith, a senior vice president for CBRE in Boston. “They’ve invested significant capital to accelerate the speed at which they can deliver space to companies, and they can be up and running in 30 to 90 days.”
On the Hunt for 5M SF
Developers including BioMed Realty, Related Beal and King Street Properties are all testing the demand for spec lab suites at properties in Boston and the suburbs. Life science companies are in the market for 5 million square feet of officelab space in Greater Boston, according to Continued on Page 7
COMMERCIAL INTERESTS
EARNINGS BOOST
The Horse Has Long Since Left the Barn
As Demand for Distribution Centers Explodes, Local Banks Compete with National Money
By Scott Van Voorhis | Banker & Tradesman Columnist
By Diane McLaughlin | Banker & Tradesman Staff
Crusade Against Pocket Listings Banks Find Openings Is Needed, and Far Too Late in Industrial Surge
Commercial Real Estate PAGE 3
Banking & Lending PAGE 9