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June 15, 2023

Electrification Is Creating A 'Tectonic Shift' In Boston's Commercial Real Estate Sector

Trammell Crow Discusses 1M SF Affordable Housing & Mixed-Use Redevelopment Along Soldiers Field Road June 27

In Boston's race to meet climate goals and electrify its buildings, developers and utility companies alike are facing immense pressure to move properties away from fossil fuels and onto the grid.

With an energy grid that has been built up over the course of many decades, pushing an influx of new developments and older buildings onto it to meet the goal of 100% electrification is a challenge that landlords and developers are now facing as ambitious climate goal deadlines approach. 

Experts speaking Tuesday at Bisnow's Boston Smart Buildings and Sustainability event at 501 Boylston St. shared their challenges in moving buildings toward complete electrification in cities like Boston and Cambridge that have set strict emissions requirements. 

Electrification Is Creating A 'Tectonic Shift' In Boston's Commercial Real Estate Sector

"I think that what we need to do as a private sector is say, 'Hey, there is a tectonic shift going on, right?'" Remap CEO Nick Casal said at the event.Casal said that with this shift, it can be challenging for a developer to plan out how to achieve full…

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Alexandria Sells 5 Boston-Area Lab Buildings To TPG Joint Venture

Alexandria Sells 5 Boston-Area Lab Buildings To TPG Joint Venture  

Alexandria Real Estate Equities has sold five life sciences properties in the Boston area, including one of the first buildings it developed in Cambridge.

The REIT sold two buildings in Cambridge and three in Waltham to a joint venture of Alloy Properties — the life sciences portfolio company of TPG Real Estate Partners — and Anchor Line Partners, the buyers announced Wednesday. The firms didn't disclose the sale price, and the deals haven't yet appeared in property records. 

The five properties total 425K SF across two of the region's largest lab clusters. The Cambridge portfolio consists of 780 and 790 Memorial Drive, and the Waltham portfolio consists of 225, 266 and 275 Second Ave. The acquisition will mark the second life sciences portfolio in Waltham and the first in Cambridge for Alloy. The…

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Chef Marcus Samuelsson's Recipe To Help Minority-Run Businesses Flourish

Chef Marcus Samuelsson's Recipe To Help Minority-Run Businesses Flourish  

A paltry 3% of businesses in the U.S. are owned by African Americans, a statistic that has prompted a celebrity chef to throw his weight behind an initiative aimed at changing the type of leases minority-owned retailers and restaurateurs sign to help them get off the ground and thrive.

Many minority-owned businesses  experienced  a  surge in support after the murder of George Floyd in 2020, but the barriers to scaling up are still high, and the economic realities of a looming recession, a tough lending environment and skittish retail landlords are not kind to fledgling businesses.

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Even Lease Language Is Going Green: How Cost Of Compliance Has Become Another Negotiation

Even Lease Language Is Going Green: How Cost Of Compliance Has Become Another Negotiation  

Building owners and managers across the country are racing to upgrade buildings to meet increasingly stringent emissions restrictions and rising demand for sustainable office space. But meeting those targets requires collaboration between operators and tenants. 

Enter the green lease.

“It’s very difficult for a building to meet a performance standard if the tenant and landlord aren’t working together,” said Marla Thalheimer, senior director of business engagement at the Institute for Market Transformation, or IMT, a nonpartisan nonprofit focused on building sustainability. “The need is becoming essential.”

Green leases have been around for more than a decade. But the increasing number of local emissions laws, such as Local Law 97 in New York City, have made the use of, and negotiations around, such agreements more frequent and ultimately more vital.

There’s also significant unmet demand for such space;  JLL estimates there’s 23M SF of LEED-certified office space, not close to meeting the 310M SF occupied by the top 20 office occupiers, who have 2050 net-zero carbon emissions targets.  Getting there is expensive. The split incentive issue, where tenants benefit…

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