Banker & Tradesman: July 25, 2022

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Turn to page B1 for Banker & Tradesman’s monthly coverage of all things commercial real estate.

ANNIVERSARY BY THE NUMBERS

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R E AA LL EES ST T F AI N A INA CL I IANLF OI R NM F A O TRI M A TSI I O RE AA T ET E& & FIN NC ON NN C E S 1I 8N7C2 E

County close-up: Essex Spotlight: Lynn

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As Jim Regan looks back at his long tenure leading Marlborough-based Digital Federal Credit Union, he describes one of the credit union’s big accomplishments during that time as “a relatively quiet effort.”

IN PERSON

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WEEK OF MONDAY, JULY 25, 2022

COMMERCIAL REAL ESTATE BY THE NUMBERS

An MBTA Orange Line train pulls into Wellington station. As demand for housing and life science space rises, Medford officials are tapping into a long-ignored potential development site.

DORMANT FOR DECADES

30 percent Construction costs are up at least 30 percent by some measures. See Scott Van Voorhis’ column on page 3. Source: Symes Assoc.

28 acres The city of Medford is seeking proposals for a 28-acre air rights development. See Steve Adams’ story on this page. Source: City of Medford

6.4 percent

WELLINGTON AIR RIGHTS SET FOR LAUNCH

Multifamily building permits are down 6.4 percent in Greater Boston. See Scott Van Voorhis’ column on page 3. Source: Census Bureau

250,000 square feet The size of a recently approved Medford lab building. See Steve Adams’ story on this page. Source: City of Medford

0.47 percent Boston’s vacancy rate at the end of June was 0.47 percent. See Scott Van Voorhis’ column on page 3. Source: Boston Pads

1,000 The total number of units in active 40B projects in Medford. See Steve Adams’ story on this page. Source: City of Medford

80 percent Boston’s vacancy rate has dropped by 80 percent in one year. See Scott Van Voorhis’ column on page 3. Source: Boston Pads

1.5 percent Medford claims it has hit the Chapter 40B 1.5 percent “safe harbor” threshold. See Steve Adams’ story on this page. Source: City of Medford

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.

Medford Eyes 28-Acre Transit Hub for Revenue Growth BY STEVE ADAMS BANKER & TRADESMAN STAFF

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looming $8 million budget deficit was a wake-up call to Medford officials about the need to expand the tax base through real estate

development. City officials are looking at long-neglected opportunities to expand the commercial base, starting with air rights development rights for 28 acres at the MBTA’s Wellington Station. The city will

issue a request for information from private developers in late summer. Mayor Breanna Lungo-Koehn said the city will seek projects that include a large housing component, along with retail and other commercial space. “That could be almost a small city in itself. We definitely want to play a part as far as the affordable housing crisis is concerned,” she said. “We see it as being a destination where nobody even needs a car to get around.” Elected in 2019, Lungo-Koehn said Medford is trying to shed its reputation as being a difficult place to do business for real estate developesr. The administration is negotiating with developers of three

long-stalled apartment projects that would total more than 1,000 units. City Hall departments that oversee planning, housing production and economic development have been consolidated to improve lines of communication. And a pending draft comprehensive plan could lead to the first citywide rezoning since the 1960s. The search for additional property tax revenues comes amid a fractious budget debate between Lungo-Koehn and the City Council’s progressive majority elected in 2021. The mayor has proposed a $3 million Proposition 2 ½ override in November, while councilors have argued for a $12 million increase. Continued on Page 7

COMMERCIAL INTERESTS

WORKFORCE WORRIES

Census Data Shows Drop; Expect Supply Crunch

Some Lenders’ Boom-Era Strategies Make Furloughs Moot

Builders Put the Brakes on New Housing By Scott Van Voorhis | Banker & Tradesman Columnist

Commercial Real Estate PAGE 3

Mortgage Layoffs in Mass.? Some Firms Say No By Diane McLaughlin | Banker & Tradesman Staff

Banking & Lending PAGE 9


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