Town of Reading

Strategic Economic Development Action Planning

Public Meeting

Wednesday, April 1, 2015, 6:30 – 9:00 pm

Sponsored by the Town of Reading and the Metropolitan Area Planning

Council (MAPC) with funding provided by the Massachusetts District Local

Technical Assistance Program and Town of Reading resources

Agenda

7:00 – 7:05 pm: Welcome and Introductions

7:05 – 7:20 pm: Goals for Tonight and Overview

7:20 – 7:50 pm: Retail, Office, and Residential Market Potential in Reading

7:50 – 8:55 pm: Design and Density Preference Discussion and Keypad Polling

8:55 pm: Next Steps and Next Meeting

Town of Reading

PROJECT GOALS AND

OVERVIEW

5

MAPC and the MetroFuture Vision

5

Project Goal

Produce a Strategic Economic Development Action Plan

for the Town, which will include a focus on how four

regionally significant priority development areas (PDAs)

can be built out to support local and regional housing

and economic development goals

PDA_1: Downtown 40R District – Potential Expansion

PDA_2: South Main Street

PDA_3: New Crossing Road Redevelopment District

PDA_4: 1 General Way

• Market analysis identifying potential for retail,

office, housing, and mixed use at the regional PDAs

• Alternative development scenarios analysis for

each regional PDA that will estimate potential

additional square feet of commercial floor area,

dwelling units, etc.

• Action Plan for the four regional PDAs that identifies

potential suitable development types, findings from

the market analyses, and policy and planning

recommendations to facilitate redevelopment of the

PDAs – delivered by June 2015

Project Scope

Local Partners

Our local Advisory Committee, which is providing early

input on components informing the Action Plan, includes:

• Town Manager Bob LeLacheur, Assistant Town

Manager Jean Delios, and Community Development

Administrator Jessie Wilson

• Selectman John Halsey; Selectman Kevin Sexton,;

members of the Economic Development Committee

including Karl Weld, Meghan Young-Tafoya, and Jack

Russell; and Lisa Egan from the Reading-North

Reading Chamber of Commerce

• Town staff identified local priorities for development

and preservation. Town then identified the specific

development types they thought each priority

development area could be suitable to accommodate.

oOptions: mixed-use: infill; mixed use: master

planned; multifamily; commercial: medical/office;

commercial: retail, entertainment, hospitality;

commercial: industrial

• MAPC assessed suitability of PDAs for accommodating

different development types using available data

Identifying Priority Development Areas: The North

Suburban Planning Council Priority Mapping Project

Data used to examine each PDA’s suitability to

accommodate different development types

1) Travel choices: proximity to CR, MBTA, and RTA bus

service; percent of non-auto commutes, interchange

proximity

2) Walkable communities: sidewalk availability,

walkscore, bike/ped lanes and paths, high traffic

roadway proximity, walkable schools, block size

3) Open spaces and 4) healthy watersheds: rare species

priority habitat, core habitat and critical landscapes,

agricultural land use, undeveloped land, developable

land, aquifer recharge areas, surface water supply, 100

and 500 year flood zones

Data used to examine each PDA’s suitability to

accommodate different development types

5) Current assets: number of businesses, population and

employment density, inverse population and employment

density, sewer service areas

6) Growth potential: recent and proposed developments,

additional housing units, additional employment, 40R

districts, 43D districts

2

PDA #1: Proposed 40R Expansion Area

This nine-acre area consists of 46 parcels and is

adjacent to the current 40R District. The Town would like

to expand the 40R zoning to include these parcels.

PDA #2: South Main Street

This 26-acre area consists of 82 parcels

located south of the downtown. The Town

wishes to enable mixed use in this area to

allow for more retail and residential and

to facilitate streetscape and road

reconfigurations that will enhance the

street for pedestrians and bicyclists.

PDA #3: New Crossing Rd Redevelopment District

This 5-acre area consists of four parcels and includes

vacant lots, derelict buildings and sites with industrial uses.

The area is zoned for industrial use. The Town is interested

in pursuing a change in zoning to facilitate other uses.

PDA #4: 1 General Way

This 20-acre area is one large parcel with a mix of

single-story commercial uses and ample parking. The

Town is interested in facilitating a more vibrant mix of

uses and structures of different densities in this area.

Source: MassGIS, Reading Assessor’s data

Land Use by Type

Source: 2013 Reading Assessor’s data

Zoning

Transportation Assets

Source: MassGIS, Reading Assessor’s data

Floor Area Ratio

Source: 2013 Reading Assessor’s

data

Building Value per

Square Foot Source: 2013 Reading Assessor’s

data

Tax Revenue Per Parcel

Source: 2013 Reading Assessor’s

data

Improvements to Land Value Ratio Source: 2013 Reading Assessor’s data

Questions?

Town of Reading

MARKET ANALYSIS FINDINGS

Interview Highlights

Retailers

• Most retail businesses were doing well.

• Not a lot of retail turnover & low vacancy in

downtown.

• Rents are competitive.

• Downtown parking is confusing.

• Town could be more business friendly and further

streamline business permitting process.

• Residential would be good for business.

Interview Highlights

Commercial Brokers

• Potential for additional small professional offices

downtown.

• Potential for limited new office development.

• Market for retail is mostly small local stores.

• Strong regional retail and office competition.

• Reading has strong community/demographics.

Residential Brokers

• Single Family (or alternatives) Market is strong

• Demand for well-located multi-family housing

Town of Reading

RETAIL ANALYSIS FINDINGS

Retail Trade Area

Primary Trade

Area

Ten Minutes

Secondary Trade

Area

Fifteen Minutes

Retail Gap Analysis

Downtown and Mixed-Use Oriented Industry

Groups NAICS

PRIMARY

TRADE

AREA

SECONDARY

TRADE

AREA

10-minute

drive time

15-minute

Drive Time

Furniture & Home Furnishings Stores 442 X X

Electronics & Appliance Stores 443 X X

Building Materials, Garden Equip. & Supply 444 X 1

Food & Beverage Stores 445 1 2

Health and Personal Care 446,

4461

2 1

Clothing & Clothing Accessories 448 X X

Sporting Goods, Hobby, Book and Music Stores 451 X X

Miscellaneous Store Retailers 453 2 3

Food Services & Drinking Places 722 1 11

Total N/A 6 18

Retail Market Opportunities

• Fill in downtown vacancies

(Quizno’s, Walgreens)

• Concentrate majority of new retail

in downtown and Northern end of

South Main Street corridor.

• Focus on restaurants in downtown

to elevate the area as a dining

destination.

• Opportunity for some additional

retail with greater residential

density.

Source: Reading Shop the Block

Town of Reading

OFFICE ANALYSIS FINDINGS

Office Outlook

North 128/Mass Pike Suburbs

Supply (million s.f.) 10.9 SF 20.1 SF 89.0 SF

% Class A 47.10% 58.20% 58.80%

Average Asking Rent $20.43 $28.99 $20.99

YoY Rent Growth 3.10% 3.20% 2.00%

Total Vacancy 15.60% 10.30% 18.80%

YoY Change (ppts) -2.1 -3.1 -2

Historical Average (%) 17.20% 14.60% 17.70%

Total Absorption 171,875 199,241 572,428

as % stock 1.60% 1.00% 0.60%

Historical Annual Average 136,819 326,246 770,050

Total Availability 18.70% 14.20% 21.60%

y/y Change (ppts) -0.73 -1.64 -1.12

Historical Average (%) 19.50% 16.80% 20.10%

Source: Jones Lang LaSalle, Office Outlook, Boston North Q3, 2014

NAICS Industry Projections

Industry

Employment

2012

Employment

2022

Change

Level

Change

Percent

Information 15,931 17,902 1,971 12.40%

Publishing Industries (except Internet) 8,648 10,402 1,754 20.30%

Telecommunications 3,289 3,176 -113 -3.40%

Data Processing, Hosting and Related Services 1,798 1,874 76 4.20%

Finance and Insurance 13,195 14,059 864 6.50%

Credit Intermediation and Related Activities 6,234 7,052 818 13.10%

Insurance Carriers and Related Activities 5,349 5,464 115 2.10%

Real Estate and Rental and Leasing 4,612 4,857 245 5.30%

Real Estate 2,927 3,272 345 11.80%

Professional, Scientific, and Technical Services 52,593 63,647 11,054 21.00%

Professional, Scientific, and Technical Services 52,593 63,647 11,054 21.00%

Management of Companies and Enterprises 5,924 6,577 653 11.00%

Management of Companies and Enterprises 5,924 6,577 653 11.00%

Administrative/Support/Waste Management/Remediation 23,499 24,872 1,373 5.80%

Administrative and Support Services 22,446 23,581 1,135 5.10%

Waste Management and Remediation Service 1,053 1,291 238 22.60%

Educational Services 46,877 51,021 4,144 8.80%

Health Care and Social Assistance 51,021 62,116 11,095 21.70%

Total 213,652 245,051 31,399 14.70%

Office Market Opportunities

• Small professional offices in

downtown and South Main Street

Area

• New office space as part of new

development on larger parcels at

One General Way or New

Crossing Road

• Build to suit would be greatest

potential at One General Way

• Large office tenant supported by

regional market but strong

competition.

Source: Loopnet.com

Town of Reading

RESIDENTIAL ANALYSIS FINDINGS

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

20-34 35-54 55-64 65+

Household Projections by Age of Householder 2010 - 2030

2010 HHs 2020 HHs 2030 HHs

Household growth will drive housing demand

• Over 1,900 additional households projected by 2030. • Senior households will grow significantly (+75%) • Young professional-aged households (+20%)

• Seniors and Millennial housing preferences align

Growing rental demand?

Reading is a majority ownership housing market.

2012: 81% owners, 19% renters

Since 2000, slight shift towards more renter households.

Driven primarily by younger households

2000 2013 Change

# % # % # %

Owner Occupied 7,165 83% 7,430 81% 265 4%

Rental Occupied 1,523 17% 1,734 19% 211 14%

Total 8,688 9,164 476 6%

Condominiums increasingly popular

Condominium development up.

Over 450 more (net) condos 2000-2015

Single family up, but down as total % of properties

Limited land available for development

Source: Mass DOR, Division of Local Services *2009 latest year data is available

Single Family Multi Family Condos Apt

# % # % # % # %

2000 6,440 78.8% 395 4.8% 649 7.9% 29 0.4%

2015 6,528 76.7% 350 4.1% 1113 13.1% 36 0.4%

Change 88 -2.1% -45 -0.7% 464 5.2% 7 0.0%

Parcel Counts by Property Class

Home sales and prices at all time highs

Condominiums

# of sales up 256% since 2008

prices up 33% since 2008

Single Family

• # of sales up 42% since 2008

• Prices up 21% since 2008

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Sales Prices: 2000 to 2014

1-Fam Condo All

0

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Sales: 2000 to 2014

1-Fam Condo All

Broker Comments

• Single family is in highest demand

• Schools a big draw, but student population

projected to decline

• Condo market is strong and growing

• Upscale with 2 beds most in demand (small

households)

• People tend to move away once kids are out of school

• Some older people downsizing leave Reading

because don’t like location of condos in town

• Many feel existing condos on the outskirts

Broker Comments

• Commuter rail station a draw for those looking in

Reading

• Little new single family construction

• Anything affordable is highly desirable

• Rentals come and go quickly = demand for more

• Current inventory is older, with few exceptions

(Haven Street)

Residential Market Opportunities

• High Opportunity for residential town wide

– 950 potential total units (town wide) over next 5-10

years (based on MAPC household projections)

• Majority of new unit development will likely

continue to be ownership units

• Limited vacant land limits single family construction

• Most development will be infill/redevelopment

• Strong demand for housing in or near downtown

– Seniors not interested in downsizing to outskirts of town

– Younger HHs prefer walkable environments

Study Areas Residential Opportunity

Priority Development Areas: 5-10 years

• Up to 410 Units

- Multifamily: 300 units

- condominiums and rentals

- Single-Family (Alternatives): 110

Town of Reading

PRIORITY DEVELOPMENT AREAS

1-B

1-A

Retail

• Concentrate first on filling vacancies

-Health & Personal Care/

Specialty Grocery/Used

Merchandise

Restaurants

• Potential to Draw In a More

Regional Customer Base on Main &

Haven Street.

Residential

• Multi-Family Development At Site

1-B & Multi-Family Infill throughout

1-A

Office

• Small Office Space for Professional

Services on Upper Floors of Mixed

Use Developments.

PDA#1: Downtown 40R

Potential Expansion

Market Opportunities

Retail

• Redevelop underutilized

retail parcels into mixed-use

with residential above.

• Phase new commercial as

more residential is added

over time.

Residential

• Focus new Multi-Family in

north end of corridor to

benefit from proximity to

train station.

Office

• Small professional office

spaces in north end of

corridor.

PDA #2: South Main Street

Market Opportunities

PDA #3: New Crossing Road

Redevelopment District

Market Opportunities

Residential

• Multi-family development

supportive of nearby

commercial.

• Single-family alternatives

(row houses) as part of a

larger project.

Office

• Industrial nature of site may

allow for more creative mix

of office flex space as part

of development

Office

• Build to suit office space

Residential

• Multi-Family & Single

Family Alternatives

Mixed-use area

• Live-Work-Play: today’s

workers prefer walkable,

mixed-use environments

PDA #4: 1 General Way

Market Opportunities

Questions?