Federal Realty Investment Trust’s new Miscela apartment tower at Somerville’s Assembly Row includes penthouse units on the 22nd through 24th floors with stone kitchen countertops and marble tile tub and shower walls. Photo courtesy of Federal Realty Investment Trust
Millennials now represent one-fourth of the total U.S. population and there is much research showing this group is focused on happiness through experiences rather than possessions or career success.
This translates into a multifamily trend for new residential buildings to be defined not from specific finishes and building amenities, but by the entire experience of living in a particular place. Other groups are adopting this outlook in the wake of our pandemic experiences, too. We are all looking for heightened enjoyment, more connectivity and less wasted time in our cars.
“Place” is as or more important than price, unit finishes and the amenity package. Renters are looking for convenience, connectivity to rapid transit (even if they do not intend to use daily), green space, desirable services, retail and dining options and easy access to the urban experience. All new rental apartments are expected to have the same basic components: stone countertops with backsplashes, plank flooring, stainless-steel appliances, a gym, a “club” room. The differentiators are now what a luxury apartment home offers in terms of access to better experiences and human connections.
At Miscela in Assembly Row in Somerville, we’ve seen a swift lease-up since launching last fall and we believe that renters are coming to us not only for a beautiful, fully amenitized building, but for the experience that is afforded by living at the heart of the Assembly Row neighborhood. Direct MBTA access to the city, a full range of dining options, essential retail such as grocery and pharmacy, fitness, green space, entertainment and varied discretionary retail all create a highly convenient lifestyle.
Yes, Miscela, and its sister building Montaje, features a number of outdoor spaces, a pool, roof deck, a private speakeasy and common area workspaces with perks such as snacks, large-screen TVs and coffee stations. But our number-one selling point is what is happening outside the four walls of the building.
Work-Life Proximity in First-Ring Suburbs
Where are the renters coming from? Lab development – especially in East Cambridge and Somerville – is happening at a rapid pace. The Greater Boston pipeline includes more than 20 million square feet of life science space under construction. And the market already added over 20 million square feet in the past 10 years. To fill the new space under construction, the Massachusetts Biotechnology Council forecasts 40,000 new positions will be created in the next 10 years. These employees want to live close to work, reducing commutes and increasing the time available to experience the city and their lives.
Unsurprisingly this same trend is occurring in the lab-office market. Employers recognize their employees have the same requirements and are paying a premium both to create a “place” by locating in desirable amenitized locations and to attract talent in this extremely tight labor market.
Patrick McMahon
As these lab buildings and office headquarters are established in East Cambridge and Somerville, the demand for an adjacent walkable neighborhood is surging. At Assembly Row, we are seeing a strong response to the mix of experiences. Both apartment renters and office tenants report preferences for new construction close to work and easily accessible to urban entertainment and culture.
Companies are focused on drawing people back to the office and to be successful, the experience for workers is critical. Many have relocated to new spaces in the last two years, and a large portion of the workforce is reassessing their entire environment from wake-up to work to leisure. COVID only catalyzed distaste for long commutes and as companies are shifting headquarters to first-ring suburbs, residential development must offer high-quality options in order to make return to work more attractive. After experiencing COVID lockdowns, workers don’t want to waste time commuting when they could be enjoying the rest of their life and finding more balance.
Residential developers will be well served to balance investments in the built environment with creative applications and partnerships to energize these buildings. Creating place is not just building apartments, but building community, experiences and dynamic environments.
Patrick McMahon is senior vice president of regional development for Federal Realty Investment Trust.
