The Economic Development Advisory Board sat down with realtor Chuck Joseph on Tuesday to learn more about the current real estate environment and how it can inform the town in developing economic strategies going forward.
Joseph, an owner of RE/MAX Executive Realty in Hopkinton, joined the EDAB in place of Hopkinton Chamber of Commerce member Nick Slottje, who was unable to attend Tuesday’s meeting. Joseph began his comments by providing an overview of the town’s commercial history and an assessment of its current residential capacity.
“From a residential standpoint, we’re pretty much built out unless we start doing some density changing and zoning,” said Joseph.
Joseph expressed concerns about home values being negatively affected by the tax rate and the town’s need for workforce housing. He also spoke about the current pace of the real estate market.
“[It’s] the slowest I’ve seen it,” said Joseph. “It’s just people that have frozen in place — economic uncertainty, low mortgage rates and no place to go.”
Members questioned Joseph on trends in the commercial real estate market and what selling points the town can use to attract new businesses.
“What we’re really talking about is how do you get something that’s a little more valuable, and what is that going forward?” member Finley Perry explained.
“If you’re going to move the needle at all, it’s going to be [Interstate] 495 commercial,” said Joseph. “Smal businesses love being near 495.”
He offered the opinion that shared space manufacturing centers in town, particularly on South Street, could be a viable approach. Joseph noted that Paul Mastroianni, a local real estate developer, recently built what he described as “industrial condos” on South Street. The commercial spaces sold out before the building was finished, he said.
Julia Chun, the town’s sustainability, economic development and equity project manager, backed up Joseph’s points. “These manufacturing businesses that need the flex space I think [are] probably our strongest hold at the moment,” she said, adding that the town’s office space is close to capacity.
The board also sought Joseph’s feedback on qualifications for a proposed economic development position. The role would be funded through the town’s new meal tax, which has generated $200,000 in revenue since implementation in January.
“Your economic development officer has to be so plugged into the commercial market,” stressed Joseph.
Chun added later in the meeting that the real estate knowledge needed in the role would help offset her current capacities. “The need I’m seeing that I can’t cover is that go-to person who already has the real estate connections,” she said.
Board member Parker Happ brought up issues with the institutional and political systems in town that prevent it from moving quicker on “fiscally advantageous” commercial options. “If we could have a mechanism to move quicker on the other things, I think that could … allow us to take advantage of market opportunities,” he said.
“The biggest obstacle you have is the political obstacle right now,” Joseph said.
For those of us who were not in the room where it happened, could someone explain exactly which “institutional and political systems” are preventing us from moving quickly on these commercial opportunities? TIA