3 min read December 2022 — Catherine Rollins is the Boston/New England director of the Urban Land Institute (ULI). She spoke with Invest: about the factors that make Boston a robust real estate market despite the Sun Belt’s clout in recent years. “There are those macro forces no one can predict but because we have such a unique set of assets, specifically anchored by our academic institutions, world-class hospitals, globally leading lifes sciences market, great attributes geographically and more, those core attributes will continue to provide a very long runway for continued economic growth in the area,” she said.
What have been some highlights for the Urban Land Institute this year?
We have about 1,400 members in Boston and the New England region now and they are very active. It’s a collaboration that provides professional networking that is outward-facing in sharing best practices and sharing resources with the wider community. The past year has been interesting, given the uncertainty, but we are pleased to have begun returning to normal. We have returned to in-person meetings, which have been successful. That has been a huge win. For the upcoming year, one of our priorities is focusing on housing attainability. The availability and cost of housing is an issue of economic competitiveness here, especially when considering companies’ abilities to grow and relocate here and attract the workforce they need. We have a broad initiative to move the needle forward on this issue in the public policy realm, using our member network and outside stakeholders. Our work around diversity, equity and inclusion in the commercial real estate space is another of our top priorities.
What would you say are some unique aspects of your district within the ULI?
This is a bit of a supposition but given our location in Boston in the heart of a globally acclaimed academic environment, we have an interesting component of folks from an academic background. I believe our membership has a greater concentration of academic folks than others given our location.
How have you observed shifts in demand from members?
A lot of our members are looking for input from their network, through us, about return to work policies and the future of working in the offices, which is certainly reflective of the time we are living in.
What are the biggest questions in urbanism today?
In Greater Boston, where folks want to live and the housing they are looking for is a main discussion. Our academic institutions and innovation clusters benefit from a certain degree of density and having folks living and working in close proximity. There is a lot of conversation about how to keep that energy and facilitate discussions on major issues around that, including transit and mobility. It’s top of mind not only for our residents and government officials but academic institutions, businesses, environmental activists and more. These issues are interwoven. The ultimate question is how to grow an urban area that folks want to be in.
What is the state of Boston’s residential and commercial real estate markets?
While the market has cooled a little bit in the past few months, the prospects are still fantastic. ULI put out its emerging trends report for 2023 a few months ago and it identified the Greater Boston market as a Top 10 market in the United States regarding general real estate prospects. What is notable is that we were the only market in the northern part of the country to make that Top 10 list; everything else was in the South. We are doing well overall, with quite the runway on different residential and commercial prospects. We are not immune from macro forces at play; cost of capital is a major issue for everyone right now, and it plays a part in deciding to bring new projects through the pipeline or putting existing projects on pause. There is tremendous demand for new residential. Depending on what happens with the larger global climate, we are very well positioned.
What opportunities do you see amid market volatility?
Interestingly, I have heard recently that our hotel market is poised to do well, which I find fascinating. Business travel is not driving it; there is leading demand from individuals and group tourism that could cause our hotel market to flourish going forward. I am still very optimistic about our other sectors, as well. Life sciences has a long runway left, given the emphasis on health now. We may see a recalibration as things settle but given our position with the education and medical sectors, that will remain a major opportunity going forward.
How does ULI utilize new technologies in operations and membership interactions?
I would say we are not dissimilar from other organizations but I have noticed that a lot of our membership seems to appreciate the opportunity to participate in discussions and network both in person and virtually. Particularly for our folks who tend to be very busy, allowing them to participate in a committee meeting virtually is huge. This shift has allowed us to really meet folks where they are and remain relevant.
What environmental and social trends are affecting the real estate space today?
There is certainly a progressive climate where many are concerned about long-term social benefit in terms of the environment and folks in the lower-income spheres. We are seeing greater emphasis in public policy on decarbonization, resilience and home affordability. Even when it isn’t a requirement, our members are looking to show leadership and innovation in those areas in the types of products being produced. This is driven by social impact investing. With the major focus on ESG for many sources of capital, I believe there is great synergy among many folks in our market looking to do innovative work and contribute socially and environmentally.
What is your outlook for the near term at ULI and for the regional economy?
My outlook is very positive. There are those macro forces no one can predict but because we have such a unique set of assets, specifically anchored by our academic institutions, world-class hospitals, globally leading life sciences market, great attributes geographically and more, those core attributes will continue to provide a very long runway for continued economic growth in the area. I would say the same about ULI and our membership; it’s very stable and our members are very committed to the organization and understand the value of participation.
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