"The Beat" | 135 Morrissey (Boston Globe Site) | Dorchester

Developers must know something we don't. The lab proposals keep coming in despite the market, among other indicators, suggesting that the Boston area is oversaturated with proposals.
 
@NorthshoreCity, what makes you think the market is saying Boston is oversaturated with proposals? If anything, I'd suggest the way to read the market is that developers proposing and building lab space shows there is significant demand, and that we are not oversaturated.
 
HenryAlan said:
@NorthshoreCity, what makes you think the market is saying Boston is oversaturated with proposals? If anything, I'd suggest the way to read the market is that developers proposing and building lab space shows there is significant demand, and that we are not oversaturated.
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40 million square feet has been proposed but not yet constructed. It's really an obscene amount. It's projected that up to 80% of these proposals will be curtailed, yet somehow they keep on coming.
https://www.boston.com/news/the-boston-globe/2022/11/15/bostons-lab-boom-is-hitting-the-brakes/

Again, all they have to do is substantially raise allowable height limits specifically for residentials and we'd actually be getting the most needed uses built around here. Instead, when the buildings are forced to be short and fat no matter the use, developers still see labs as the better bet for ROI. Every politician who rails against height while simultaneously begrudging the lack of affordable housing are FRAUDS, plain and simple, starting with Boston's mayor.
 
NorthshoreCity said:
Developers must know something we don't. The lab proposals keep coming in despite the market, among other indicators, suggesting that the Boston area is oversaturated with proposals.
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The other thing to consider is that linkage fees are going up quite a bit (although in a graduated fashion) over the next few years once the Boston Zoning Commission approves the changes. If you, as a developer, believe in the longer-term durability of the biotech sector then it makes a ton of sense to get your proposal in the door now and sit on your permits until the tenant situation improves, presumably in a few years.
 
Aprehensive_Words said:
The other thing to consider is that linkage fees are going up quite a bit (although in a graduated fashion) over the next few years once the Boston Zoning Commission approves the changes. If you, as a developer, believe in the longer-term durability of the biotech sector then it makes a ton of sense to get your proposal in the door now and sit on your permits until the tenant situation improves, presumably in a few years.
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I wonder if the assessment valve and property taxes go up immediately with the new zoning; whether or not the project starts? That would be good for the city as well I believe.
 
NorthshoreCity said:
Developers must know something we don't. The lab proposals keep coming in despite the market, among other indicators, suggesting that the Boston area is oversaturated with proposals.
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Or lab focused projects are the only projects developers can get financing for and they rather build lab developments than no developments. The real question is what do those that are financing these projects know?
 
BosDevelop said:
Or lab focused projects are the only projects developers can get financing for and they rather build lab developments than no developments. The real question is what do those that are financing these projects know?
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Doesn't the history of past real estate cycles suggest that developers and financiers always overshoot demand in any given cycle?
 
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