/2 OFFICE EXPANSION IN FORT POINT: A CASE STUDY OF ADAPTIVE REUSE IN AN INDUSTRIAL DISTRICT by BRUCE ANDREW WILLIAMS A.B., Harvard College (1983) SUBMITTED TO THE DEPARTMENT OF URBAN STUDIES AND PLANNING ON MAY15, 1987 IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE OF MASTER IN CITY PLANNING at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY May 1987 Bruce Andrew Williams 1987 The author hereby grants to M.I.T. distribute copies of this thesis in permission to reproduce and to whole or in nart. Signature of Author 5epartment ot Urban Studies and Planning Certified by Lynne B. Sagalyn. Accepted by Thesis Supervisor ( Philip ClaV/ Chairman Department Graduate Commitee MASSACHUSETS INSTITUT' OF TECHNOLOGY JUN 0 8 1987 LUBAr 5 OFFICE EXPANSION IN FORT POINT: A CASE STUDY OF ADAPTIVE REUSE IN AN INDUSTRIAL DISTRICT by BRUCE ANDREW WILLIAMS Submitted to the Department of Urban Studies and Planning on May 18, 1987 in partial fulfillment of the requirements for the Degree of Master in City Planning ABSTRACT A district of Channel area conversion to million square buildings once warehouses and industrial lofts in the Fort Point of Boston has undergone rapid and substantial office use during the past five years. Almost one feet of space is now available for offices in used for storage and manufacturing. This thesis first examines the process of change in the Fort Point district over a period of twenty-five years, from the last efforts to nurture industrial development to the recent development boom. The recent adaptive reuse of the district is not an isolated event, but was prefigured by two decades of activity among public sector planning organizations and private land owners. Secondly, the implications of reuse are addressed by evaluating the evolving role of the district in the context of the city of Boston. The increasing role of the district as a location of inexpensive office space in converted buildings is found to fulfill an important niche in Boston's economy. The nature of the buildings themselves, the pattern of ownership, and the regulatory process has allowed the district to be an important resource in allowing this expansion. Thesis Supervisor: Lynne Sagalyn Title: Asst. Prof. of Planning and Real Estate Development ACKNOWLEDGEMENTS I am grateful to process. all the people who helped me through this long My classmates in the department have become close friends over the last two years. This last stage of our experience, in which we shared the joys and agonies of completing a thesis, only heightened my appreciation and respect. Anniken Kloster, in particular, was always there to cheer me on when it felt like the project would never be complete. Lynne Sagalyn, my advisor, was patient and knowledgable. Her thoughtful reactions, questions, and advice were invaluable in focusing my investigation. I only regret that I did not heed more of her good advice. I owe my greatest debt of gratitude to Westley Spruill, who helped to make this experience bearable. His patience and gentle support were unlimited. I hope that this is a debt I will have the opportunity to repay in the years to come. TABLE OF CONTENTS Chapter One Chapter Two Chapter Three Chapter Four Appendices Bibliography Interviews Introduction The Process of Change The Evolving Role of the Fort Point District Conclusions: The Impact of Reuse 22 50 LIST OF FIGURES MAP l Fort Point District Context MAP 2 Site MAP 3 Fort Point Adaptive Reuse MAP 4 Fort Point Arts Community CHAPTER ONE INTRODUCTION: ADAPTIVE REUSE AND THE FORT POINT DISTRICT Preamble At the intersection of Congress and State Streets in downtown Boston, pin-striped men and women shadow of one forty story building to the next. towers crowd the street, to the rush from the extraordinary monuments in expansion economy. The intersection Boston's financial is of glass and granite Boston's considered district, in Office the service heart of the parlance of local real estate brokers it is the "100% corner" against which all other locations are measured. Further along Congress buildings and over an Fort Point quite Channel. different. expressway, a past bridge more tall leads over On the far side, the environment is Solidly originally constructed materials and manufacturing Street, to finished economy, built brick store and goods of fill the buildings, process New the raw England's landscape. Today, however, many of these industrial structures house office workers. This district, and others like it, are finding new as uses the post-iqdustrial pervasively molds land use. economy ever more The process of reuse in this industrial district is the subject of my investigation. Adaptive Reuse Ten years ago, the architect Raynor Warner wrote about adaptive reuse, maintaining that it represented become that tolerable"; buildings left forces could social functions. a demonstration behind be by "a truth of the simple fact changing economic and rehabilitated for contemporary Warner also wrote: By the time <this book> goes into its second printing, what is now tolerable may become self-evident. We are so quick to adapt to changed circumstances that we may not recognize how much has changed" (Warner, 1978; p vii) He was right. in urban In 1987, development. reuse is an accepted fact Examples of the reuse of schools, factories, churches and a myriad of other building types are is extensively catalogued. architecturally and rather than It economically, to destroy them or to proven possible, re-use buildings, let them lie fallow and decaying in a landscape of neglect. The mere fact that buildings can to new be successfully adapted economic lives is now so ubiquitously apparent as to be banal. The reasons that this change took Changes in place are multiple. taste among both architects and the citizenry led to the belief that history is worthy and emulation, in stark modern movement of the more so, of preservation contrast to the anti-historical preceding generation. But even economic changes allowed this aesthetic impetus to be 1970's realized. and The early impact 1980's of inflation during the increased the cost of new construction, favoring the re-use of existing structures. Federal tax changes, in 1976 and more profoundly in 1981, allowed deductions of rehabilitation expenses, increasing the attraction of reuse. Yet, we may not see the forest for the trees. the success cumulative of individual impact on institutionalization urban of reuse view, and use, the cities. placement The examples existing of reuse is their development. has changed built the way we environment zoning tax code encourages, and often mandates, to possible and profitable, development game have shifted, a very of our the federal reuse on a much greater scale than has been experienced before. is The of preservation incentives and directives everywhere from local re-use Beyond and our the Because rules of the cities develop in different way than they did in the decades before Mr. Warner wrote his book. The reality is that with new. The growth. is no longer synonymous re-use of buildings and entire districts is significantly altering the pattern of urban growth and land use, structures. shifting at Districts marginal, inimical least some once considered growth to existing economically to the needs of the modern city, have seen their fortunes reversed. Once they were barriers to growth, which had to be cleared of existing structures to allow development and growth. They are now a resource, reservoirs of available, adaptable space. Industrial Districts; a Resource for Growth A prime in the example of built space as a resource is found industrial districts of older cities. These districts are typically comprised of multi-story, densely packed warehouses and manufacturing lofts built late nineteenth and early twentieth centuries. in the They are physical remnants of a defunct spatial arrangement of the economy, in which many manufacturing functions were centralized near the hub The markets, and warehousing labor, and at of rail and port facilities near the urban core. original declined functions precipitously of since these the first districts half of have the century, because the advantages for their centralization were suburbanization greatly eroded by the of the population and the development of an auto-based transport system, as well as by changing modes of production. Boston, for instance, largest single for one manufacturing employment In was the sector of the economy in 1950, accounting fifth manufacturing was of all jobs. By 1985, employment in less than half of the 1950. At 42,500 jobs, it is now only the fifth largest job category. 1 In cities around the nation, industrial districts have found new uses expansion. Soho Francisco, the as sites in for New office York, South of Market in San Fort Point Channel in Boston are just a few of many, examples. The buildings of these districts, although they vary greatly by age in general particularly The solid structures, and and residential goods, Volumes of adaptable can attractive undivided handle any warehouse plans. or use, are to adaptive reuse. original meant to easily floor and original handle machinery contemporary uses. loft space present Most importantly however, the centrality of these districts makes them attractive to reuse by virtue of their location alone. This location is of increasing importance, because concomitant to the decline of manufacturing, office sector has greatly expanded its role. of Boston, the sector all in jobs employees. the office city, This figure the approximately in fact, now constitutes has job is a any largest In the case fifty percent of approximately 300,000 substantial increase from 170,000 office the of or the urban jobs in 1950. percentage Boston, concentration of major American city surveyed by the I It is led by services; government; finance, insurance and real estate; and retail, in that order. These figures are quoted from Hamer's 1973 study, updated by the BRA research department. BRA, but the same phenomenon of office growth and manufacturing decline repeats in city after city. Based on the twin facts of an expanding and a steadily declining office sector manufacturing sector, the conversion process currently occurring in many industrial districts is a foreseeable, even inevitable move to fill a In vacuum. this industrial districts deterministic on the view of growth, edge of downtown lie in the path of expanding office sector, which in the case of Boston has more than doubled in square footage since 1970 (BOMA, 1987). vertical, Although with traditional added financial demand has much of space this growth concentrated district, the sheer has been within the volume of steadily-pushed the zone of office towers and office jobs outward. A Case Study of Office Expansion In studying the industrial area, Boston, this significantly route to the process the of Fort change Point in Channel a particular district in initial view was not contradicted, refined. What current status developing office but was I discovered is that the of the district as a node has not been direct or immutable. It is characterized by cycles of investment and activity, conflicting plans, and alternative possibilities. complicated by patterns of ownership and access. It is It is enriched by stake. The the variety manifest of actors destiny I with interests at first presumed is moderated by a closer study of the case. Yet, a pattern of change can be traced back decades before the current explosion added almost one million in conversions, square feet of office space to the city's total inventory of thirty-five feet in just the which has past five recent, and most powerful years. million square This is the most development, but the district has not developed simply as an extension of the financial district; it is also a residential, institutional, and cultural district as well. The goal of this study is to decisions and actions taken by the to understand arrived at determine sort through major actors involved how the process of reuse has unfolded its how present the state product of the today, and and further to this conversion process actually fits into the urban system. It is my contention that development has particular characteristics definition of adaptive reuse. both a the reality of because Adaptive building's perception of that building's utility. in a story in this district of the very reuse changes function and the The reuse process district like Fort Point, therefore, is largely the of changing perceptions of what a declining industrial district can be in the life of a city. This change in perception may gradually occur with the incremental addition of abruptly through reuse projects, the success of a is evolutionary may happen prototype, but it is crucial to understanding the process. process or In essence, the rather than revolutionary. the process of reuse unfolds, the As potential of remaining buildings is highlighted, and this potential changes over time. There is no clean slate that easily transform with a and often opposing uses fabric over a period a city new vision. coexist or developer can Rather, different within of transition. the same urban Therefore, at the same point in time the district can have many identities. Fort Point, for instance can be called an office node, an artists' community, a manufacturing district. in perception, The change and in fact the perception of change is a strong motivating factor in the reuse of the district. In the case study I attempt to trace both the physical and perceptual which changes by relating the unfolded in the study century. at the according to district. These development in the district is influences, factors, the last quarter In the second part of the study I analyze what the process has produced looking area over chain of events but including diverges not models suggest that following one according ownership, 13 various models of to location, a set of number and of timing. Neither is the process complete; district is renovated, more has been what for decades. could happen is Not while much remains substantially of the as it only what has happened, but important to understanding the importance of adaptive reuse in Fort Point. II'Ijl f505TOW HAKV'Ofk r-1 F--"-FORT POINT CHANNEL AREA Description and Context The study area is a fifty acre parcel of land and buildings on the east side of Fort Point from downtown part of Boston. (see map 1) South Boston, but residential neighborhood by rail Two bridges link it to the Congress Streets. The it Channel, across Geographically it is is removed from the yards and vacant land. city, crossing Northern at Summer and Avenue bridge makes another connection just north of the district. Approximately six million square feet of built space is contained in the warehouses and industrial lofts of the district. These buildings, few larger than 100,000 square feet, are closely packed along narrow streets and old rail spurs in bisecting cross roughly streets. rectilinear grid broken by Five to Seven story industrial and mercantile buildings line these main thoroughfares of Summer and to downtown. Congress Streets, Summer is surrounding streets which connect the district actually up to a story above on a viaduct, originally constructed to allow trains to cross underneath. It proceeds through the district to connect the area to the rest of the South Boston industrial waterfront. Warehouses crowd Congress Street. out along the narrow side streets north of South of Summer, more warehouses string Midway Street along one edge of the district. They frame a twelve acre vacant parcel stretching the banks gap in of Fort Point Channel. the district, dense brick although a and number out to This is the only major granite of fabric of the small vacant lots are scattered throughout the study area. At the edge of the district, near the Congress and Summer Street bridges, the district is only a few minutes walk away from South public transit merges where lines converge. the beginning of which Station, the into district the commuter rail and South Station also marks of Financial tall office towers, District, Boston's In the interior of the study area, particularly amid the central office district. stretch of warehouses along much further away, Midway street, the city is both physically and psychologically. Vast vacant lots surround the district on two sides. The Fan Piers to the North and the Commonwealth Flats and the Penn Central Railroad properties to the east district apart. Only Gillette Company's vast district is there any on one its southern story contiguous set the flank, where factory adjoins the developed land, but needless to say, the contrast is still strong. On the South Boston expanses, there are other large seafood beyond the vacant Waterfront, points are restaurants of activity. at located A few Pier heads overlooking Boston harbor, near to the center of Boston's remaining Pier. commercial fishing Commonwealth waterfront, was Pier, once a also shoreline, South Boston passenger terminal and is now a industrial lies the South Boston although the city on development. Further down uses predominate, and beyond residential district is both the central at the Boston Fish the convention center and office the fleet neighborhood. Thus, self contained, set apart from and industrial neighborhoods, surrounding residential and it is not totally isolated and without context. A History of Trade and Industry The Fort once Point district tidal flats. began to fill the warehouses, In area to lofts, and is constructed 1837, the Boston Wharf Company create port Each one around constructed distinct medallion, emblazoned with construction. facilities. The other mercantile buildings were built in a concentrated period century. on what were the turn of the by Boston Wharf has a BWC and the year of The warehouses were only part of a vast transportation complex on the South Boston waterfront. Located between pierheads and a system of rail yards, the district served to store and process inland or out to sea. leather, and sugar, the products before mercantile they were shipped Particularly important were wool, goods central city. to the Necco Confectionery Company) was one fortunes of a (the New tenant, leaving England its name on one of the streets of the district. With the decline of the regional manufacturing economy in the 1930's, the point declined. By along the Fan Piers nearby rail entire area's the 1950's, was replaced yards had fallen into elaborate system of transport The district shifted from constructed to manufacturing, Still tied serve, a break bulk the great port complex by a parking lot; the disuse as well. linkages had The broken down. the import/export role it was to warehousing, to role as more and manufacturing, general light wholesaling functions. the buildings housed garment, leather, and printing industries, which replaced sugar and wool as the major businesses of the district. A Constant Pattern of Ownership The Boston Wharf Co, which originally and built filled the land most of the buildings has remained as landlord of three-quarters of the area. The rest was parceled out among a number of separate owners during the early years of century the by originally granted Brewing Co. Most Wharf ownership roughly in (see map warehouse to was property Co., of the which was goods, and in the hands of Pabst properties are clustered A few store dry originally the triangle 2). Wharf title to all filled land in the area. Jordan Marsh built a another Boston the under non-Boston along fort Point Channel, defined by Congress and Summer are scattered in with the rest of Boston Wharf's holdings. This with few changes, to the present. pattern has continued, - ---- ~ SOUTH STON -*e I SATN{ PROPOSED CENTERSOT TRANSPORTATION FEDERAL SERVE wRESURNI SOUTH POSTALANSW f1 - Fo ; Rr O0N HA N tSEE\ FA CNSaritTH SE - ANTHONY5 PIER ... .... Bo~~~--oH ~ BUIT P Om.........BUIL -- / B0 W~l 1 INIORF PFVPOY-ACN c:I OW0 SE 1TE ANVACNPIE SIT SIT CHAPTER TWO THE PROCESS OF CHANGE STAGE ONE: An Inner CitU Industrial District The 1960's marked an era of Under the leadership of Ed Logue great change in Boston. Mayor John Collins and Director of the new Boston Redevelopment Authority, vast districts of the sponsored urban city were targeted renewal, and were stripped of buildings for federally significant tracts of land for redevelopment. The Fort Point district was relatively unique in escaping any form of government downtown and recipients intervention. entire of Major portions of the residential neighborhoods were the planning studies, clearances, rehabilitation, and other forms of government attention. In many respects, the lack of action in the Fort Point district reflects industry. a Stimulating was a much greater stable, lack if of urgency Fort Point declining; district never reached higher and the buildings dealing with rebirth of the mordant downtown concern. slowly in were was relatively vacancies in most of the than 15% well (BRA, 1967; p4), maintained by the Boston Wharf Co. In the 1965-75 Plan for Boston, district for new illustrating its the BRA targeted the light-manufacturing development, even idea with a sketch showing mid-rise towers rising along Fort Point Channel. The plan exists only as a vision of what the entire city might be like in ten years. The BRA part of the plan however, that never took any action realizable. the existing The plan to make this does recognize, structures were no longer attractive for industrial development by proposing a new form to take the place of the brick warehouses. In 1967, the BRA organized program for industrial space prepared in anticipation an in -house marketing in Boston. The of industrial displacement by urban renewa 1 and highway construction in the city. Of the 1,400,000 Point total. district, Much of property along a A street was a vailable significant this space other parts of square feet identified, approximatel y 250,000 square feet Fort study was in the s hare of the city was located- in Boston Wharf at the margins of the district, but properties along Congress and Summer Streets showed vacancies as well. This planning uses in marketing efforts industrial Economic (EDIC), to the district. advocate of The program in specifically joint the extent of encourage industrial Even the agency created to be the development Development a represents study and with had another focus. Industrial the BRA Corporation in 1972 on industrial land needs in Boston, concluded that the small floor plates and multi-story buildings were not tenable for contemporary policy makers plants to and future sought the to city, identification of large industrial needs. lure high-tech and thus open and assembly focused parcels Public on further the from the urban core. STAGE TWO: The Imminence of Change Public Sector Plans The BRA/EDIC "change" study area, of along 1972 with labeled the Fort Point waterfront, a leather district, and other industrially zoned areas in the inner city. According to the study, these change districts were to be studied for zoning reclassification, but there is no indication that this was ever done. This designation marks the expectation for uncovered. the future Clearly, the changed over during the time, but 1970's, first this of official the perception of change in district that I the district had as expansion picked up in Boston area of change -- both the warehouse district and the vacant expanses surrounding it -- became a city planner's and developer's dream of manifest destiny. With every high-rise added to the crowded downtown, the emptiness of the Fort Point landscape became cruder contradiction. In the mid-seventies, an ever office the South Station Federal Reserve tower was built on sprouted towers steps the from in Boston side of Street only Summer Fort the new area; Channel. Point Growth, surely, would eventually leap the narrow boundary of Fort Point Channel. BRA plans, however, did not forecast that major office towers would cross over Planning studies the channel. new office development in the area. discourage major BRA reacted discouraging office construction, the market which over-built downtown percent vacancy rate by 1977. study of the same construction should the Fort Point Channel stated that "should market next few occur within Clearly, the over-building to an peaked with a fourteen The year also over demand increase In of years, new office the core of downtown." downtown was not yet a concern. The BRA started several projects that recognized entire area. framework for During action long-range physical planning the the on growth Private plans the South hotel/residential developer interest. Boston waterfront, They forecast that the new development for complex for the 1970's, the BRA assembled a including the warehouse district. area could support potential and rehabilitation. development on the Fan of a major Piers confirmed The major problem was lack of access. problems were the choke development. bridges Current from point access downtown, downtown and throttle new through South Boston Public Transit locations are periphery. To improve access from nearby highways, a technological fix in the form of a new access road could was limited to three aging or residential neighborhoods. located only on the that Transportation Northern Avenue bridge and a seaport were deemed essential elements. These local improvements were tunnel/depressed appended central to artery the plan third that harbor was first conceived during Governor Sargent's administration in the early 1970's. Obtaining funding infrastructure transportation improvements planners support for these major has in been the the city focus and of state administrations ever since. Also in the 1970's, the BRA mandate continuous (BRA, 1977; p.11). formulated public access to the channel frontage This idea later expanded Harborpark, a continuous linkage waterfront. Because waterfront are could be development. a program to all implemented of the entire downtown non-marine conditional under to become uses on the city zoning, this idea incrementally through new Both the represented waterfront They plan and the public walkway transportation a vision quite forecast of the different the entire from and the Boston contemporary reality. transformation industrial district South of a declining surrounding acres of vacant land into an active, accessible part of the city. These programs have taken years to reach implementation, but their presence have helped to shift the perception of the area from a landscape of decline to a landscape of renewal. Although the focus utilizing the vast Point Channel, of planning was directed toward tracts any of large recognize the role of the vacant land planning across Fort process warehouse district. had to The BRA Fort Point planning study of 1977 also directly addressed the existing with buildings of considerable the Fort ambiguity. Point district, but In a seeming attempt to cover all the bases, it encourages: upgrading of existing industrial loft space for office, light-manufacturing and wholesale trade; rehabilitated residential industrial development buildings, in new and and protection and enhancement of existing jobs and uses. The forecast is essentially reactive; it seeks to accommodate significant physical upgrading and reuse of the district minimizing the impact on the present users. while BRA planning studies offer no implementation policies for these complicated use directives. district, which (waterfront was M-4 (manufacturing) industrial) Manufacturing is The zoning remained the most of the and W-4 unchanged. open of these two classifications, allowing most uses as of right, limiting only multi-family conditional uses. housing and approval of a variance Appeal. In the Boston, development. as by the variance Zoning Board of process is a major the BRA uses to gain approval power over The zoning of the majority of the district, therefore, did little to enforce the policy advocated by planning documents. The that presents the facilities Conditional uses require review by the BRA and instrument that parking document vision of a multi-use district was never reflected in the laws governing redevelopment. Maintaining the existing zoning, while ineffective in mandating uses in the district, did help protect existing buildings, because the floor area ratio of four specified in the zoning is exceeded by most of the existing buildings. The use strictures outlined highlight the official policy. design or jeopardy Many in planning document interpreting elements social imperatives; of what should occur in the of a any plan plan as fit urban they may present a vision without recognizing the difficulty of implementation. difficult In politically the private market it would be to regulate use of existing structures as selectively the plan suggests. Rapid change is controversial, but in the potentially the city's 1977 report, and own interest, highlighted lay in maximizing tax revenue while minimizing public cost. at their destabilizing The reutilization of buildings "highest and best use" would be the best way to accommodate that directive. Despite the policies outlined BRA did consider Fort office growth. downtown firms In Point as the were to Industry Survey, assess six emerging or locations for their Fort Point channel received the largest negative was considered situated to clients and access Office possible response of seventy percent. area 1977 Study, the a possible recipient of 1979 asked potential office areas as firm. 2 in the to the "perceptionally, MBTA. its The report notes that the aesthetically undesirable, poorly other businesses, The distance report from also South and with poor notes that Station was greatly exaggerated". (BRA, 1979; p 70) 2 The six areas are Broad Street, the Waterfront, South Station, North Station, Midtown, and Fort Point Channel. Private Sector Positioning While the public sector framed policy and lobbied for new infrastructure, private actors nature of the began to change the district. During the 1970's, substantial shifts took place, but very little was physically evident or widely noticed until the end of the decade. In 1972, the purchase of Boston Wharf Co., by Town and City Properties, a British transportation and real estate conglomerate, was a perception of the operating as a major indicator district. publicly purchase by Town and of Boston the changing Wharf had ceased held company in 1960, but the City heightened the expectation of significant development. Transactions among the properties along Summer twenty and non-Boston Wharf Co. Congress Streets increased significantly, from only one in the 1965-69 period to six in the first five years of the seventies. II) indicate speculation, because These transactions little renovation activity occurred. major new player, and new (see appendix Anticipation that a public investment increase the value of real estate in the area may would be the reason behind the increase. Town and City's development strategy focused on new construction in the twelve acre vacant lot to of Alternatives of a Summer convention Street. (see center/hotel or map a II) stadium (one the South of many proposed over to replace the years on this because the Development both proposed in 1976. however, discarded ultimately Boston Garden) were site was lack of solution to transportation access problems to such largescale uses, because the site was identified by and also the state as a possible route of the third harbor tunnel project. Town and City, therefore, development activity. company retained that period original one development these commercial to for become and Boston and Wharf (the waiting. presupposed and on also the on The public major new the nearby fan piers; waiting realities, manufacturing Yet at assessment was proposed not embark on major under new ownership) describe improvements, limited changes. Town & of investment infrastructure for Executives its name as did Boston tenants another reason Wharf let continue on with for somnolence on City's part, according to Robert Kenney at Boston Wharf, was major corporate reorganization of the parent company in the late 1970's. In 1980, yet another new player entered the scene, when Rose Associates, a national developer headquartered in Town New York, assumed and million dollar mortgage note to gain City's remaining six a minority interest in Boston Wharf Co. Rose Associates, which also owned an office South tower near Station in downtown Boston, brought market extensive of the local development The combination prefigured a more knowledge to the table. active role for Boston Wharf. A Cultural District While ownership shifted future, other and owners made plans for the changes significantly image of the district. altered the popular With no original instigation from the city, the district evolved as a cultural resource. began moving In the mid-1970's, artists in to loft buildings scattered throughout the district, living there illegally on commercial leases, the neighborhood. the first residents in Though the district lacked everyday services like markets and pharmacies, its loft space was affordable space was very and available. Comparable difficult to find in other Boston neighborhoods The Boston Wharf Company tacitly approved the official illegality; artists paid at rents, and provided a Neither did the city new market After end of commercial for industrial space. ever raise the issue, even when it became clear that people regulations. the high were living all, their residential conversion even if contrary to zoning own policy encouraged the zoning did not. In this respect the Boston experience is very different from the similar movement of Sharon Zukin artists in Loft Living. to Soho, described by There, a special exception to the zoning code was necessary to allow artists to live in loft space, and only in specific geographic areas. Boston the process was not because the sheer numbers of so contentious, people In perhaps involved are much smaller in Fort Point. Another unexpected development 1975, after spending years transpired looking for a new when in home, the Children's Museum (originally of Jamaica Plain) purchased the Allied Stores Warehouse, a six-story building facing Street Bridge. the building the channel unadorned brick off just off the Congress An earlier buyer had intended to a to convert furniture and interior design center, but was forced to sell a year later. The Children's Museum entered the area with some trepidation. The site is technically in South Boston, and in 1975 that neighborhood antagonism set off by was school busing. neighborhood is far removed Children's Museum could seen be from the relocation as embroiled part in The residential site, however; the committee of the racial felt downtown, the area with proper advertising. To the museum, convincing factor. the location and price were the Located adjacent to downtown and near public transportation, the site promised to be accessible to a broad range for the of children. The price of $1,000,000 entire 145,000 sq. feet was four million dollars cheaper an than alternative in offered the heart of downtown, and the warehouse space was highly adaptable to museum exhibits. The 1979 opening turning point district. in the the Children's Museum became a story of reuse in the Fort Point The activity and color surrounding the museum and its plaza facing rest of of the city. Fort Point Channel knit it to the It brought people and publicity to an area which had formerly been largely unknown but to the downtown workers who parked their cars on its periphery. It is probably not unusual that the Children's Museum is the first dramatic Fort Point development to district. The cautious in making as big a channel, heeding the quoted "location, location, location". museum does not suffer constraining boundaries, in the private market tends to be leap as much take place the one real across the estate dictum An institution like the the same market risks. the market Within follows the museum. It is hence attractive to see the Children's Museum as an exemplar for future reuse in other sectors. It is worth noting vacancy rates simply have proceed certainly in downtown postponed until engendered as however, that a helped to for office developers to In any case, of the lively shift the perception result of high Boston in the late 1970's may plans later. the period the difference Museum complex of the old warehouses and lofts lining the streets of the district. STAGE THREE: The Fort Point Development Boom In the 1980's, development Channel. After years caught up with Fort Point of planning studies and developer speculation, the renovation of buildings for new uses has reached a sustained level which has of slowing down. renovated so far presently not yet Seventeen properties during undergoing this shown signs have been fully decade, with renovation. seven more Renovations are particularly prominent along the main streets of Congress and Summer close to the bridges leading over the channel, but instances exist throughout the district. Residential Development One of the very first reuse Place condominiums, projects is encompassing Sleeper Street, one street in three from the the Dockside warehouses channel. on The eighty-eight unit project, begun in 1981 by Boston Wharf, has the distinction residential project of in being the Kenney terms it a success, were first offered, district. but sales problem, according to Kenney, the admits were was only market-rate Boston Wharf's that when units difficult. The major that rising interest rates locked many potential buyers out of the market, and thus many deposits were forfeited. The experience Soho, in New is entirely York City, opposite from the case of where upscale residential development followed in the path of artists. Fort Point, however, has never developed a street-scene of galleries and cafe's that would to residential between office help make the area more conducive development. buildings Children's Museum, proved projects. Dockside and a the poor back model Place, isolated wall of the for subsequent R rx WEINTIAL Reowm-C UsRaN1 R EsUovio VA~ EII ernn LIJ 0 FE-r 0 FICE" CURENT RNPIERo-U Fm PAKKIN6 FORT POINT ADAPTIVE RE-USE Office Development dominant The in activity As background has been added to the market. square feet one million By 1987, almost conversion to office space. to this rapid pace of conversion, two factors the vacancy rate in downtown plunged from 14% in 1977 to 2% in boom is development the class stand out: A office space 1981 and has remained in the single digits ever since; correspondingly, average office rents in the same space have more the decade than tripled in since 1977, from nine dollars to thirty-three dollars per square foot.(BRA, 1987) According to Miller Blew, managing partner of Bulfinch Development renovated Co., one in space constriction which of the this made active developers district, industrial it was structures of this on the downtown's margins particularly attractive to conversion. Large volumes of space in existing available at low cost, providing lower buildings were rent overflow for firms caught in the price-escalation bind. This was particularly true because the growth in office employment was due to the establishment small professional and service increased employment in the and employers. other very large growth. firms rather than from banks, buildings in industrial districts and expansion of insurance companies The relatively small could accommodate this A new other had factors an impact on the The inflationary cycle of the 1970's had driven process. up of number existing The availability of costs of attractiveness of historic credits, allowing tax 20% on renovation costs of the non- up to historic register the for conversion. (Warner, 1978, p6). existing properties deductions of the increasing buildings, than faster costs construction buildings of this district heightened The ability to syndicate these benefits this disparity. lowered risk to developers. Purely local factors played a role too. After years of lobbying, city and state officials felt more certainty that the new transportation infrastructure would become a reality, and coming years. in 1981 major The new development would occur in the nearby Fan to begin a long Piers proposal resurfaced period of planning studies and approvals. Likewise, that would improve access to the area were pushed by the State Department of Governor the massive of Transportation Dukakis in 1982, and traffic improvements with the re-election finally approved in a Federal highway bill in 1987. The BRA, conversion of significantly, has not regulated office space to any great degree. stark contrast to the process of approvals for construction, which process. goes through the This is major new an elaborate approvals Many conversion projects, as described earlier, do not need conditional approval under present zoning. The few variances applied for in the Fort are approved routinely without comment from the specified, but Point district the Zoning Board of Appeals by BRA. Design review is often with most properties this review has been perfunctory; According to Mitch Fischman at the BRA, only the properties must at the integrate edge of Fort Point Channel, which public access along the water, have demanded time of the BRA and the development team. Speculative Development The multiple factors have supercharged the development climate in the district during this decade. among the non-Boston Congress Streets possible pool Wharf properties along Summer and increased at of a rapid pace. Out of a twenty parcels, only two transactions were recorded in the latter half of the this rate Transactions increased to nine in seventies, while the first five years of the eighties. (see appendix II). In this small sample, prices began in 1982, square jumping from foot in the approximately thirty increasing rapidly an average around ten dollars per late 1970's to an average of five dollars per square foot in the early 1980's. This increase has continued through to the present, with unrenovated space dollars a square foot in 1986, selling for up to sixty and still selling at a The rate of pace equal to the early part of the decade.' value increase is double that recorded in downtown Boston over the same period. Unlike the (BRA, 1987; p 9) period of speculation in the early 1970's, development activity transactions. closely Projects followed began masse in 1984, when six office different patterns buildings opened. of development a developer Street, A united more marketable properties few have been followed. of the property join Another assemble property developers of these, including 250-260 Summer adjoining buildings spaces.* Finally, developers have A few to renovate the space. pattern has occurred when themselves. increase in coming on the market en In one pattern, the current owners forces with the sold the to create larger, properties of a few shortly after completion of the rehabilitation. It is Streets this which pervasively in small has One new building which burned reflects the along changed the 1980's. existing buildings in converted. area the the most and Summer quickly and Eleven out of the seventeen sample building, 303 down. convergence Congress The of were, or are being, Congress, replaced a speed factors of conversion favoring office 3 Price in 1986 dollars * The resulting structure has 94,000 net feet leasable square development with ownership. The the many multiple nature property reacted almost owners separate of The process simultaneously to the possibility of profit. in 1984 began in 1981, but exploded with six completions alone, and additions in each year thereafter. transform the streets; new shops line The renovations the base of the and buildings punctuate building buildings have entrances. only not glossy new lobbies The developers of these to sought convert these to convert them at the highest end of the buildings, but market possible. This transformation is particularly true on the margin of the district overlooking Fort Point Channel, where projects incorporate the public walkway along the Channel's edge mandated by the BRA. The rapid pace of conversion has created some problems in finding fall of a market for the 1986, according Boston at was the 23%, another district these figures, 250,000 square vacancy in second highest behind only the the district is Fort Point of any district in North of converted warehouses.' the In the to the biannual Building Owners and Managers (BOMA) survey, Channel area additional space. Station area, According to over-built, and the feet coming on line in 1987 will only add to the high vacancy rate. 'the districts include Fort Point, Station, Back Bay, Government, and Retail. 42 Financial, North Boston Wharf Boston Wharf's property changes in ownership. development activities The has not office at 263 Summer projects at was bought fifteen market, and at and more Because the entire years ago for only twice the price that one building on Congress today's a time, transformed the landscape to the same degree as the speculative developers. tract supervising all company, through its Street, works on only a few that pace has remained intact despite Street sells for in so because it has the strong financial backing of two major development organizations, it is under no pressure to increase its renovation schedule. Interestingly, Boston Wharf's activities off the main streets of Congress and Summer. buildings it has renovated for office have focused Most of the space are located in the area north of Congress Street on Farnsworth Street (see map). The renovations of these warehouse buildings are very simple, without high quality finishes or central air conditioning, developers have for instance. While been vying to produce a Class A product, Boston Wharf produces space very clearly range at very speculative competitive rents. square foot, vacancy is very low. in the class B At twelve dollars a Only recently of its did the overlooking the water renovation. At $24/ sq. ft., competitive with is now Street, Summer 253 sites; profile higher company begin taking advantage in process the rents will of be higher, but the product of other developers in the area. As a major landowner, Boston Wharf priorities from district. housing As the owner property other and manufacturers, has very different manager of warehouses, owners in the eighty properties artists, offices, and condominium residents, the company must have a long range view, for makes it a number of reasons. vulnerable to For one, its very size constricting action by the BRA. Extremely fast development which dislocates large numbers of tenants somewhat could obvious be controversial. reason A second, and is that in developing quickly, Boston Wharf could compete with itself. In answer to a BRA request, a master plan for the section Congress, completed The plan residential forecasts development space renovated in Because it owns many in of its property north of by Jung/Brannen identifies properties buildings Boston Wharf commissioned the of both office and buildings, and also that will not be renovated at all. of the streets, subdistrict, landscaping features. Associates in 1981. Boston as well as the the plan even specifies Wharf is proceeding with the plan, with minor variations, street by street. fact The illustrates the is there that a vast differences large and small land-owner. plan is unusual, but it between the As intimated earlier, Boston Wharf is behooved to act in a rational, It is now preparing south of Summer changes which role of a knowable manner. a plan for the even larger district Street, in anticipation of the major will be brought by the Third Harbor Tunnel connection through its property. The development of office recognized by both the space in the district is marketplace and public sector planners as a significant development. BOMA now includes it as a subdistrict in its bi-annual Market and Occupancy Survey. BRA included it in early drafts Interim Planning that it is in eventually Overlay many ways decided to District a part deal of its Downtown (IPOD), recognizing of downtown. with it The BRA separately in a similar re-zoning action in South Boston. Artists and Industry The office development boom of the vulnerable tenants off wholesaling tenants, who Streets have rapidly guard. lined departed, 1980's caught more Manufacturing Congress and and Summer and there is been no organized industrial policy to encourage the retention of space.6 industrial manufacturing in in EDIC, Boston "The its Big report 1983 Picture", on actually excluded the majority of the Fort Point District from its "industrial fact South that in Boston" its Boston, three survey of the Boston, employing classification, of despite the industrial jobs in South twenty largest employers in South a total of 450 employees, were located within the district.' EDIC has determined that underlying land the end to manufacturing with the exception of at the activities in this district, the buildings most extreme values spell edge of along Midway Street the study range square is impossible to compete with office It uses that can charge three Boston Wharf and has supported shortening standard of to lease three three four to Standard manufacturing rents foot. from area. times six dollars/ that figure. EDIC's view by raising rents terms years, to the factors commercial office encouraging the departure of firms even from unconverted buildings. Data is confusing on this issue, because EDIC figures include this area together with the growing industrial area at the far end of Summer Street near the Boston Marine Industrial Park. Nevertheless, employment declined 9 % between 1978 and 1983 alone. 6 These are The House of Bianchi (garments) at 293 A Street, Mark Burton (printing) at 300 Summer Street, and Stanwood Drapery Co. at 321 Summer Street. 7 the other hand, have mobilized as a group Artists, on to fight for their continued existence in the Fort Point By the mid 1980's, over three hundred artists district. lived and/or worked in commercial leases. In the district, 1982 they all but a few on formed the Fort Point Artists Community (FPAC), in order to make the community known to the city and to the general public, and to press for secure housing. annual Fort Through Point developed sympathy, studios such strategies tour, press coverage, the artists as an have and political clout well in excess of their numbers or monetary resources. In 1984, FPAC was able to buy one building to house thirty studios at 249 A Street. sweat equity units. The and was sold It was renovated through to opportunity to artists as cooperative buy more property in Fort Point is very limited, however, and the group has focused on the preservation of was able grant five to of renovation. a to In 1985, it agreement by Boston Wharf to restrict rent increases to the and relocate any tenants evicted because Boston negotiation threatened an year leases, inflation rate, in engineer commercial leases. Wharf agreed mediated oppose a by the variance to these conditions BRA, because FPAC request for the construction of a parking garage that Boston Wharf needed for future office conversions. Robert artists that a getting are relatively small percentage approximately better much than deal although the artists constitute a manufacturing tenants, with Wharf correctly points out Boston of Kenney of all industrial tenants, square 250,000 feet scattered throughout the district. The difference crucial in location more than a geared to decade Boston Marine earlier. locations, Industrial Park of EDIC's policies tenanting of such as in the (BMIP), at the far end of Summer Street in South Boston. full perception protecting existing space as much as providing new space in safe the the The area was written off as an industrial alternatives. were not is Only very recently, with BMIP, have they begun targeting industrial conversion, seeking to change the zoning of some areas to be more exclusively industrial. The artists, on the other hand, are relative newcomers to the district. The rapid changes brought by the office development boom community. According to Point Artists threatened a budding, not declining, Robin Peach, Community, artists director of Fort feel like "pioneered" the district, only to face removal by of gentrification. partnership with By organizing the newspapers and the and they a form forging a BRA, they have been able to preserve the community for the time being. SOUTH STATION CENTER pROpOSEo TRANSPORTATON FEDERALRSERVE BANK PoN Jv ---- CHANNEL 9 A T--r- P ~: 325 FR STREET P RA 17 316 322 4OIN TA 28 2 41 47 S PR A S ANNONYS PIER -17 333 PT~uc I. //38Uir~II ~ ISTTI LINGS ARTr5 -L va/Won SIC2 osF. PAC. CoNe, FORT POINT ARTS COMMUNITY CHAPTER THREE THE EVOLVING ROLE OF THE FORT POINT DISTRICT The role of the clearly evolving. of groups Fort Point district in the city is As described earlier, the multiplicity represented in the district guarantees that there is no one view of how it fits in with other sectors of the urban system. development, which Even within the sector of office is the transformation of primary concern in this document, there are a number of different possible views of what is happening. There is no perfect model to conversion in Fort messy and imprecise to which certainly Point, describe the like the process, it is too compartmentalize. overlap, product of are Four angles, useful in describing the present and future use of office space in the district: one is that the central business district is expanding, a second posits the creation of a specialized subdistrict, a third forecasts a mixed-use district, and a fourth sees office space in the district as more suburban than urban. Central Business District Expansion The most pervasive view is that the reuse of buildings in the Fort Point business district District expansion. analysis is that the CBD cannot is evidence of central The main argument for this absorb the total growth in demand for expanding into the district. towers in potent and therefore the CBD is space, office The construction of office the South Station area over the past decade is physical for evidence movement towards argument is Fort Point. articulated demonstrated by the the direction of this Broad support for this by the type of public sector, development and activity performed. Before analyzing this argument, what constitutes central it important business district to note itself. Popularly, the banks, major financial service, insurance, and law firms of financial fulfill the image. each, and They district office towers hundreds employ of employees constitute the core identity for the functions of the CBD. If this is the core of the business district, there is also a fringe. In the fringe are the firms in a broad range of fields that cluster near the core because close contact with other firms or government is important, but which cannot afford prestigious a clear cut-off fringe firms, but rather there instance, young There is not small, firms locate in class B space on more prestigious quarters sectors of the office office tower rents. between core firms and is a continuum. in consulting or law may the fringe, only to with greater success. market, For such as move to Other engineering and architecture, locate almost exclusively in less costly space because of lower profitability as a sector or high space needs per worker. In 1985, The BRA estimated encompassing both the vacant will account by early in directed for up land that and Fort the Point, built area, to 12.5% of all downtown employment the next century. growth will presumably encourage this spatial The BRA's policy of expansion, as the new zoning policies restricting heights hold back growth in the financial district and in other sections of downtown. Developers reinforced along this notion rehabilitation. renovations office Summer is The very buildings Congress in their quality and the in the Rather care in finish of to the This is buildings which directly front both the waterfront and than simply retro-fitting industrial space, the developers great approach channel. the channel, and enjoy views of downtown. streets have high, comparing admirably to small across particularly true and and their developing a architects have taken sophisticated and elegant image for the product. It is instructive, however, to look beyond the lobbies of the buildings. The quality of the renovations is partly driven by the historic tax 1981 and 1986 allowed credits, which between deductions of up to 20% for historic renovations. The level of finish achievable is high, particularly in the highly visible the buildings, because the tax public areas of credits encourage the inflation of deductible expenses. Rent levels different and tenants, story. Aside however, tell a somewhat from those buildings directly fronting the channel, the rent levels are much lower than those of the central business district, which in 1986 averaged $33 dollars for existing (BRA, $40 dollars for new Class A space. in Fort Point are in the expensive building 1987; P 9), and Most of the buildings 15-20 dollar officially rents range. The most in the 27-33 dollar increment (BOMA, 1987; p 11). The nature of the space obviously does not very largest With core businesses average square floor feet, to expand in the district. plates entire allow the of approximately 8-15,000 buildings rarely contain more than 100,000 square feet, well below the requirements of many core businesses. There is some however. but only in Channel, where evidence the buildings the amenity possible connection levels and limited with of the the the quality of tenants. district is found in fronting Fort Point view and the closest downtown a traditional mainline core firm Point of core expansion, raise The prime example of located one the rent of in the Fort these waterfront locations, at 250 Summer Street. Morrison, Mahoney and Miller occupies 50,000 square feet in the 94,000 square foot Boston law located near firm formerly building. A large the heart of the Financial District, its business makes it desirable to be in close physical proximity law firms. According partner, when to the firm to the David courts and to other Bakst, faced a Esq., a senior relocation decision, it judged that Fort Point was tenable, and most importantly, $15 per square foot cheaper than anything available near their original location. The Fort Point district thus exhibits some evidence of a shift margin. of core The fulfills a uses, but rest of central location multiplier district firms start up effects construction in development, as reduced supply the the in the unable in the of office of and Class afford 37% in 1986. (BRA, 1987, a more Fort Point district. downtown renovation to renovation have new and new encouraged this construction has B office space (pre-1960 construction, unrenovated) from 60% of all to this analysis fringe function: firms which have been forced out of the CBD, or new The only along its most amenable p 8). space in 1978 Most tenants in rehabilitated buildings occupy a floor or less of space, in a broad range of firms including consulting, financial services, architecture, engineering, and advertising. The BRA reinforces the interpretation of the district as a fringe CBD survey. location in their recent office While developers classify their rehabilitations as Class A office space, the B. most BRA classifies it as Class Officially, Class A is new or newly renovated office space, while 1960. Class B However, the determination of $24 class is unrenovated BRA has space built before added dollars/square a foot rent and level more for A space, which clearly distinguishes Fort Point district office space from most space within the Financial District. The private marketplace also alludes to this disparity; in BOMA's Office Survey, Fort Point is grouped with the Boston category of CBD. This considered part Downtown Boston, suggests that but not with the while the area is of the downtown market, it is definitely outside the center. The view of the site for the CBD Fort Point other uses presently exists. In office conversion occurs block by block until the district is wholly appended to supported in the district, sees the district in terms of transition to a more homogeneous mix of uses than this view, an expansion does not place any great importance on the concurrent existence of but rather District as by the spatial the CBD. succession The view is so far, but that pattern of succession in which converted buildings are clustered near Fort Point Channel on Streets is Congress and Summer motivated by the pattern of ownership as much as by geography. As we have seen, the property has converted than that imminent in individual ownership much more quickly, and much more lavishly, owned by the completion Boston of Wharf Co. With the conversion in these properties, the pattern laid down over the past few years may change. Specialized Subdistrict Another way of looking at the Fort Point district is that rather than evolving simply into an extension of the CBD, it is evolving connections across into a the channel character all its own. which has specialized subdistrict with but also with a separate Like the Back Bay, for instance, a concentration in the insurance industry, the Fort Point district may be developing a concentration of functions which are mutually reinforcing. Despite the broad diversity noted earlier, the Fort Point district does have a substantial concentration of architects, graphic designers, and advertising firms in converted Added printers, designers, architects space. and artists to in office furniture showrooms in specialization of the the unrenovated structures, and retail space, district the partial in design functions is apparent. Artists' presence in the district since the mid-1970's constitutes the imagistic roots of the district's design function, but the quality and price of available space is the greatest reason professions are than other for less able professional naturally concentration. lighted to pay warehouse buildings for class A CBD space services, spaces are of Most design and many the open plan, converted especially suited loft and to the needs of architects and other designers. The specialization recent location of the end of Park. Summer argument is bolstered by the Boston Design Street in Center at the far the Boston Marine Industrial For firms that have substantial contact with this facility, the Fort Point District is not just at the edge of the Financial District, but is between two major destinations. In viewing the the district as a specialized subdistrict, current mix of uses, in both unrenovated buildings, is more expansion model. expansion of example of unimportant The gentrification; to rehabilitation the causes Specialization is development, in that many somewhat and relevant than in the CBD the developing expulsion renovated of more the CBD previous is more an uses character, former like are and tenants. community of the present users of space are important district. upgrade resources A young from to bare-bones retaining functioning architecture firm, the of the for instance, may unrenovated loft space to more finished and prestigious space while the same in a converted building, functional relationships to firms and services with which it interacts. The BOMA occupancy professions were survey notes that design among the first to occupy rehabilitated buildings in the district, but that in recent years, they have been joined financial by service a growing firms. number The of legal and argument for a specialization in design is therefore weakened by current trends, but is still very significant. Mixed Use Neighborhood Planners in forecast a both the mixed use public and private sector have neighborhood in district. It is the view promulgated by 1977 Fort Point Channel Study, Boston Wharf in its own study, Associates in 1981. explanations of the would posit that much of the be swept away by specialized. in its performed by Jung/Brannen senses, product the BRA and further developed by The district use neighborhood in some the Fort Point currently is a mixed but of the previous two the process of change mix is temporary, and will further evolution into something more The concept of a mixed-use district is similar to the specialized concentration model developed earlier, but it also assumes that residential uses are an important part of the conversion process occurring in the district. effect, the model maintains that In the district should remain substantially the same, but should become more of an attractive neighborhood to both live and work. Residential development mixed-use framework Jung/Brannen. narrow side development, The is a developed intimate, streets are in it fact significant part of the by BRA and removed qualities of the suitable is the for residential where many of the artists presently live in loft space. Officially, Boston Wharf is the greatest mixed-use. It is the only landowner to develop market rate housing, at Dockside Place on current plans development, forecast and Pittsburg Street. it is Sleeper Street. a continuation just starting of a Its housing project on In addition, they plan the conversion of loft and warehouse space into variety of proponent of rental rates. Jung/Brannen plan for part office space at a wide Importantly, according to the of Boston Wharf's property, some space will remain unrenovated, and thus could remain in traditional manufacturing use. As owner of seventy-five percent of the built space in the district, presenting Boston an Wharf has nonthreatening political view their development activity unsettles future development approvals slow transition for the the district avoids of the future. the could reasons for BRA, with industrial facilities in the A tenants in advocates industrial employment in Boston, a particular EDIC's or EDIC, be put at risk. remaining industrial difficulties If of problem as Boston Marine Industrial Park reach capacity, and industrial relocation within Boston Negotiations becomes with increasingly artists for favorable difficult. lease terms partially defused a situation that could turn popular and political opinion against Boston Wharf. According to Robert Kenney, General Manager of Boston Wharf, there is no intention to depart significantly from the plan. There is also no guarantee; it is constantly re-evaluated against market conditions. For instance, in the same period in which Boston housing project, conversions. it has Wharf has completed Because Boston Wharf is completed one four office reacting so slowly in comparison to the smaller land-owners of the district, by converting only a few time, the years to current mix come. of its many properties at a of uses should remain reality for The long term tenacity however, is more difficult to forecast. of its vision, This is particularly true in assessing the residential possibilities of the district. of size and layout are The buildings, in terms conducive conversion, but the district is not to residential directly adjacent to any other residential neighborhoods, and their supporting services. This, along with the near invisibility artists in creating an active street-life makes changing the perception of the area to very of the difficult. conversions in The Boston a residential neighborhood most have successful been on the residential margins of neighborhoods, such as in the factory buildings along the North End waterfront. Action taken by the BRA to help preserve artists in this the place of the district is rational public policy within framework, while from the perspective of CBD expansion it simply obstructs the movement of the marketplace. It is one of the only actions taken by the BRA to enforce a mix of uses. Suburban Dispersion There is one view which sees office space in Fort Point as part of the generalized trend of dispersal. other views modes: easy highlight face to related businesses, the retention of the urban work face contact, mixed-uses. suburban view of land use, the The clustering of interAccording to this more creation of office space is judged by price and accessibility alone. This is certainly a minority view in the Fort Point district, but there is at least one development project currently in the construction phase to which it corresponds. The renovation of the Hub Folding Box Company complex on Binford Street by Stanhope Development Company differs from the majority of conversion projects both by its size and its location. free-standing factory create open floor 320,000 square This is The linkage of three buildings with plates feet of much larger of in the district glass atriums will up to 50,000 sq. ft. and total space at final build-out. than the norm for the district, and will allow large scale users into the area for the first time. Street landscape activity The location, of and south parking lots, amenity, but harbor tunnel which will to the Boston. be Southeast of is as from the eventually provide Expressway inexpensive different from the higher far in a hub of close to the intended third and For these reasons, the marketed Summer the easy access north shore of development project will back-office class space space, quite overlooking Fort Point Channel. 8 The developer anticipates $17/sq.ft, before concessions. renting the space at The development is unusual in its isolation and size, and of course its success is as yet undetermined. makes the point that when accessible by foot from businesses it must take the location is not easily public on than the clearly not all as transit or other more suburban, i.e. self- contained, auto-dependent nature. actually larger But it The district, which is compact financial district, is accessible to the CBD as the office buildings lining Fort Point Channel. Other outside developments our study acceptability of on the district South point locations not Boston waterfront to the increased at the hub of the CBD. Commonwealth Pier, redeveloped as the World Trade Center, now houses office space for Fidelity, and many firms tenanting the Boston Design Center location the in Back Bay to Boston Marine Industrial Park. are relatively nature of isolated. from a prime present location in the All of these developments Their isolation changes the communication between transportation. moved Walking and firms, and the mode of the subway are replaced by cars and shuttle busses. The point is made located on the even in edge of the case the Senior firm was Partner forced at Morrison, to law firm the Fort Point Channel at 250 Summer Street, albeit in a minor way. Bakst, of the institute According to David Mahoney and Miller, a shuttle van to to employees transport and from North Station and Government Center (stops in the commuter rail and transit systems) each day, and hire additional bicycle messengers make point the that modest, but Those measures are because of longer trips. when centrality is an important the relatively short distances locational factor, even found within this one district are substantial. A Mixture of Influences images of Fort Point Channel can be defended All four as a version of the truth. not following or instance. the These opposing views expansion of element of advertising of ownership, the location of of the building, for four for CBD are not, has happened. into the specialization and district is characteristics of what the in this but a number of different paths one path, depending on the nature property, Change the For example, the district in it, architecture most part, may as have an when firms small locate in rehabilitated space. The real import of these different views is not that they perfectly describe that they focus what is attention on affecting renovation activity. district has these occurred so multiple influences happening, the but rather various influences Building reuse in the quickly, responding to many of simultaneously, that it is difficult to identify one model as paramount. probably as true for the developers of for the critic. This is property as it is One example is the development of class A space for class B tenants. It exposes the current schizophrenia of a district in the midst of rapid change, in which the market is not certain, but rather is rapidly shifting. All of these models recognize that, the district is becoming an important only differences are the and the relationship of city. It degree to to some degree, office node. The which this happens, development to the rest of the Of course, this is in large part a fait accomplis. is instructive conversion on a to remember, large scale however, only began in the early 1980's, and only a few years earlier was play a major role in the district. that office not forecast to However, the sheer volume of office space converted in these few short years guarantees location the of continuing office role space, of the district as a regardless of future development trends. The Future of Office Development In many respects, the rapid pace of office conversions in Fort Point since 1981 longer, if only cannot because properties is dwindling. be the Because sustained number most of of for much available the recent renovations resource were is of almost non-Boston totally Wharf used buildings, that up, with only a scattering of unrenovated buildings left in the district. Boston Wharf majority of Co, on the other hand, controls the vast unrenovated space both in the currently desirable area along Summer and Congress and in the still undeveloped areas in the But their activity far reaches of the district. policy of close supervision of all development by the continue to small staff restrict the of the company should pace of their development to a few properties per year. The nature of property ownership will pace of thus affect the development, and there are other influences that should check conversions in the short term. rate of 23% quoted by the most recent BOMA survey (fall, 86) suggests that demand is not and the The vacancy keeping up with supply, addition of 250,000 sq. ft. in the next year may only increase the gulf. properties just The entering the high rate market at may reflect the time of the survey, because at least one developer, John O'Connell of Stanhope Development, much lower. However, influences of that some office expansion years since 1981, positive. thinks when The Boston the the present rate is of the underlying have weakened in the six impetus was overwhelmingly vacancy rate, while still low by national standards, has inched up to 10% from the 2% current absorption rates.And, while historic tax credits are reduced, they are now among the only tax advantages available in real estate development. The perception of the area as an office market is perhaps the strongest impetus for continued development. district is recognized as a The significant component of the overall downtown market by public planners and by the private market. As the district becomes ever more acceptable for office location, the price differential so important in its development becomes less important. Future district scale on the Fan will only area large as development Piers, which reinforce the an new office infrastructure will is now adjacent to the virtually assured, perception of the entire Fort Point district. New transportation help allow new, more intense development on the expanses of vacant land nearby. In the longer term, given the continuation of current growth in office space, the district will be ever downtown Boston, and more central thus in the increasingly office market of attractive for adaptive reuse. The long term continuation of current trends is in no way assured. Many sources point to a diminution in central city office sector growth, based on productivity advances due to computerization, and on the increased dispersion of traditional center city functions based in part on electronic communication advances. See ULI, The Changing Office Workplace, 1987. 68 recorded in 1981, suggesting that inflationary pressure on forces favoring dispersion office rents should slow, and the should weaken. The federal tax deductions for landmarked historic structures have renovation declined from of non- twenty to ten percent. under the 1986 tax code changes, diminishing the attraction of adaptive reuse. tax benefits is sharply The ability to reduced under syndicate the the same tax code revision. Finally, existing building shells in the district are no longer undervalued in comparison to new construction. According to Miller Blew of Bulfinch Development, the cost of his company's current project at 280-86 Summer Street is equivalent to the cost of new construction. This is in stark contrast to earlier experience, when developers exploited the lack of perceived value in existing structures and to deliver the construction. product to market at were able less cost than new The rapid inflation of building prices district since 1982 eroded the successful shift in the in the this disparity, an indication of perception of the districts' utility. (see appendix II). However, forces Class despite encouraging A office the office rents are diminution development among the in some factors, the are still present. very highest in the country, second only to Manhattan, and scheduled additions to the downtown office market will not lead to over-building at current absorption rates.And, while historic tax credits are reduced, they are now among the only tax advantages available in real estate development. The perception of the area as an office market is perhaps the strongest impetus for continued development. district is recognized as a The significant component of the overall downtown market by public planners and by the private market. As the district becomes ever more acceptable for office location, the price differential so important in its development becomes less important. Future large scale district on the Fan will only area as development Piers, which reinforce the an new office infrastructure will is now adjacent to the virtually assured, perception of the entire Fort Point district. New transportation help allow new, more intense development on the expanses of vacant land nearby. In the longer term, given the continuation of current growth in office space, the district will be ever downtown Boston, and more central thus in the increasingly office market of attractive for adaptive reuse. The long term continuation of current trends is in no way assured. Many sources point to a diminution in central city office sector growth, based on productivity advances due to computerization, and on the increased dispersion of traditional center city functions based in part on electronic communication advances. See ULI, The Changing Office Workplace, 1987. CHAPTER FOUR CONCLUSIONS: THE IMPACT OF REUSE Changing perceptions of urban growth In this study, district has I closely analyzed how one industrial been transformed transformation is not yet become an important part providing space accommodating to a museums, through adaptive complete, of the broad artists' The but the district has office variety reuse. market in Boston, of firms, while also lofts, and residential condominiums. The movement of office space to this and other industrial districts at the periphery of the central business district is indicative of a profound shift in perception, and establishes a pattern, new pattern sectoral existing built urban expansion form. became socially in more In past acceptable, the industrial destroyed term decline buildings reverse is make way for as other uses for more congenial locations. But the experience of reuse in entire industrial districts that to structures; or alternatively, the district would continue a long bypassed it In this decades, before preservation and economically appropriate use. can be accommodated within the district would either have been modern, land are also functions are adaptable true. to new Contemporary very malleable has proven uses, economic not only but that the and social within a static physical form; the office building, or the condo, or the museum can have many different physical manifestations. The case study illustrated how this change transpired in one district. It was not fluid, but full of starts, stops, and a few dead ends. the 1980's, The rapid large scale changes in use in during which the district emerged as an office node, were prefigured by years of public sector private positioning. I planning and identified three overlapping stages in this process of change. Underlying everything is the gradual manufacturing functions in the central city. decline This began much earlier than the advent of reuse as a major force, a direct cause precondition. district of reuse, rather is The perception of Fort Point as constitutes the change. This process of but sectoral decline first stage persisted and is not a necessary an industrial identified long of after in the signs of were evident, and lay behind efforts of the BRA to market industrial space in the district in the late 19901's. The second inevitability of public sector stage was change. In actors began the this phase, to plan future for the district, without an what that future would be. like the stadium of the key private and for a non-industrial initially clear idea of This stage was characterized by a number of significant proposals these, realization for the district. Many of proposal of the Boston Wharf Co., were abandoned. Others, ultimately implemented. like This waterfront access, transitional phase were was one of testing possibilities. During this architects to change, but second stage, movement of artists unrenovated loft space confirmed the theory of large scale action was modest. The opening of the Children's Museum in 1979 represented a cusp second and stage and a third project to manifest the stage. wide between the It was the first major variety of possibilities for reuse in the district. In the third stage, a decade of plans and proposals was translated into action.' identity of established During the district through the this as an rapid buildings for office uses. surprising in relation to stage, office a node renovation of strong new has been industrial The speed of the actual change is the decades of gradual movement toward change. Today, the district has a new identity, quite apart from its industrial origins. stages are the reuse not gone process. manufacturing and Evidence of the first and second though, and that is a characteristic of Much space warehousing uses remains unrenovated, and still remain. considerable uncertainty about the future mix of uses district. However, all There is in the future development will be in the context of the existing office district. The perception of the district has successfully shifted, even faster than the actual uses of the district. Special qualities of adaptive reuse It is ironic that the warehouses and lofts of Fort Point have undergone such a standing plans for the working their way contrast illustrates rapid nearby through transformation, vacant the the special accommodating urban growth. Fan while Piers long are still approvals process. role of The adaptive reuse in It can be a very speedy process, and can also accommodate a variety of users, including those not normally served by new development in the central city. The small properties of Fort Point Channel insignificant in isolation, but together account of approximately roughly six million one-million square square feet feet of for a store of space. space are that If the has been converted since 1981 had been proposed as an office tower, it would have had to go through a battery and permitting procedures, of reviews, hearings, potentially adding years to the development process even before the start of site-work. In contrast, the small increments which characterize the development pattern in Fort Point require little regulation, nor do they arouse public controversy. no shock of the new; the With traditional reuse, there is problems with new development such as traffic generation, environmental impact, and aesthetic compatibility are a of conversion can occur within a amount surprising The result is considerably. also reduces construction time that non-issues. The small scale very few years. The diverse part of of pattern ownership is another factor which can speed the this district In Fort pace of conversion. which characterizes difference between Point, the large and small property owners is pronounced. the one of the difference is due to the special case, but circumstances of the also a generically different approach to there is development between large scale property. Some and small owners of scale A large owner is forced to plan and stage his/her actions over the long term, while the moment seems right. small owners may act when In Fort Point, this allowed them to act within a very narrow time frame. The diverse large ownership conversion. of small buildings inexpensive space relatively a one one slice simultaneously. office of allows Unlike addresses only number number wide large can For instance, to parcels under variety of approaches to new development, which of the market, adaptive reuse of a properties run small the address in the gamut luxuriously from various markets Fort Point district, barely appointed renovated, Class A space comparable to anything in the financial district. The result is that Fort Point, and districts like it, are effective stockpiles of easily adaptable space. During a 73 period of high demand and limited additional supply, like that which was experienced in this space can serve Boston to catch in the the overflow of the CBD that might otherwise leave the city altogether, because major new development can take many years to react. to responsive the needs often development not centrality, but cannot afford entire floor of an office space. That development boom, them to firms, which new address. Firms that need prestige, office tower Finally, the buildings are resources a don't need an served by reuse. for uses other than has been the dominant use in the recent but their residential create and are well or size, scale, institutional special quality of adaptive reuse is to It is particularly smaller of does early 1980's, richly mixed and setting lends as well. A final therefore the potential urban neighborhood from an area formerly associated with a very narrow range of uses. Fostering Reuse The role of industrial districts as a resource for urban growth is increasingly well current zoning initiative of established. the Downtown In Boston, the Interim Planning Overlay District (IPOD), adopted in 1987, formalizes reuse by proposing District restricted and warehousing the growth Bulfinch districts subdistricts Triangle, downtown. Fort for two the Leather manufacturing/ Point Channel is BRA's the outside rezoning action is it cap will contemplated. Like the for heights allowable but designation, downtown a similar downtown action, new development at an average existing height for the district. In addition, the BRA a policy has proposed to protect historical buildings, as designated by the Boston Landmarks Commission. Fort Point Channel is currently all significant being surveyed for just such designation. These actions indicate that the BRA is institutionalizIt ing reuse into city policy. nificant, but has somewhat passive, always very former success industrial increase in of existing buildings reuse in districts, property with In the case of action as much as public policy Channel, private was the instigation for conversion. the a sig- role in fostering the reuse of Fort Point and other industrial districts. Fort Point played point, however, changing the perception of as values, At this seen could replacement in the substantial eventually by threaten denser structures. The BRA's action forestalls this possibility. Over the quarter century of this case study, public and private attitudes towards the existing built environment have come full cycle. Now, finally, its value is firmly reflected in public policy, just as it successful reuse is projects. reflected all around us in The process of change in Fort Point is still evolving, as its role in the city is redefined by new uses. Through all the change, however, the existing 75 APPENDIX I TIMELINE 1967 Fort Point warehouse space marketed by BRA 1972 Labeled "change" area in BRA/EDIC Industrial Needs study 1972 Boston Wharf bought by Town and City Properties, Inc. mid-70 5 Artists begin moving into district 1975 Children's Museum buys Allied Stores building 1976 Historic Preservation tax credits established 1977 Boston Class A Office Vacancy Rate at 14%. 1977 BRA Fort Point Channel planning study 1979 Children's Museum opens 1980 Rose Associates becomes minority partner Wharf Co. 1981 Masterplan for part of Boston Wharf rties prope in Boston Dockside Place (Condo) construction begun by Boston Wharf Economic Recovery Tax Act, increases benefits of Historic Preservation Tax Credits Boston Class A Office Vacancy Rate 2% 1984 FPAC develops cooperative at 249A Street Six Office renovations completed 1985 Fort Point first included in BOMA occupancy survey 1987 Third Harbor approved Tunnel/Depressed Total office space, complete 1,209,000 square feet Central Artery and in construction: APPENDI II REAL ESTATE TRANSACTION IN THE FORT POINT DISTRICT (1980-1988) Address 25) d ;q t e Summer SSummer 285 Summer 353 Concress 274 Summe- 32-340 Summer 369-375 Conqress 256-60 Summer 292-302 Summer 303 Conqress 1 / 60 1/6 2 4/2 6 54 1 1 /64 4 / 7'1) 1.1 /72 10/73 2/74 308-316 ConQress 4/74 308-316 Canaress 1-2/75 8/79 347 Conqress 268 Summer 'I' 303 Cogress 395 Congres 250-260 Summer 347 Conoress 320 Concress 373 Concress 250-50 Summer 274 Summer 345 Congresr 280-286 Summer 262 Summer Price r 3/80) 1/81 7/83 11/83 2/64 S6/84 1/,85 1/85 10 /86 $ a. 1 -t. 55.000 22. 960 72. 000 $1.64 $2.0 S1.33% $3. 79 $2.64 45 ,0C0 $ 2. 27 $355. 000 26. 2S0 112.55 $ 175, 000 $261 1 C)oo 57.800 S3. 03 $550. 000 45. 000 84. 000 $175., 000 $860,000 90. 000 144.540 $5.80 $6.55 $1.94 $5.95 $990, 000. 144.,540 78., 000 !6.78 $3.90 72., 000 $3.82 $2.83 $3%04,0 qOa $275,000 $255.000 $255,00 53.200.000 S1 50 .000) $82. 000 S90, 000 $73. 000 587.000 $190. 000 $99 . 000 . 800. 000 210. 000 45. 000 90-0,) $34.04 $1. $2. 250. 000 5 737,000 48.000 72 -000 15, 626., 000 $7,220.000 S5.940,000 72 .0 $2, 7(: 000 $25.21 231. 25 94.000 129, 882 45 . 000 $78. 14 $45.73 APPENDIX III NEW AND RENOVATED OFFICE SPACE IN FORT POINT DISTRICT Address Renovation Square Ft Year of 1984 New 303 Congress 130,000 313 Congress 64,700 1984 330 Congress 72,000 1985 332 Congress 37,200 1984 347 Congress 33,300 1984 11 Farnsworth 44,000 1986 12 Farnsworth 64,380 1984 24 Farnsworth 80,000 1987 47 Farnsworth 16,000 1984 44 Pittsburgh 32,000 1984 51 Sleeper 156,000 1984 250 Summer 94,000 1985 268 Summer 67,148 1981 274 Summer 72,000 1984 CUMULATIVE TOTAL 1987 962,728 Binford Street 175,000 (phase 1) (1988) 253 Summer 61,148 (1988) 285 Summer 55,000 (1988) 129,882 (1988) 280-286 Summer CUMULATIVE TOTAL 1988 1,383,758 BIBLIOGRAPHY Alexander, Ian. 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