2. Form & Function of Metropolitan America WALKABLE URBAN DRIVABLE SUB-URBAN WALKUPS: (Walkable Urban Places) DRVABLE EDGE CITIES WALKABLE NEIGHBORHOODS DRIVABLE SUB-DIVISIONS REGIONALLY SIGNIFICANTLOCAL SERVING ESTABLISHED & EMERGING: 1.2% of the land in metro Boston 2.4% of the land in metro Boston 4.4% of the land in metro Boston 92% of the land in metro Boston WALKUPS: (Walkable Urban Places) DRVABLE EDGE CITIES WALKABLE NEIGHBORHOODS DRIVABLE SUB-DIVISIONS Metropolitan Land Use Options

3. Real Estate Product Type- Metropolitan Boston Distribution of Metropolitan Boston Square Feet by Product Type OFFICE: 6% FOR-SALE RESIDENTIAL:* 63% RENTAL APARTMENTS: 5% RETAIL: 4% INDUSTRIAL: 5% CIVIC/ INSTITUTIONAL/OTHE R: 16% HOTEL: 1% 5.5 billion square feet of real estate in the 3,119 square miles that comprise Metropolitan Boston 3.5 billion square feet (63%) is For-Sale Residential (6-12 % points is rental) * For-sale Residential includes all single-family homes and condominiums, plus 2-3 family units

4. Product Type Valuation Premiums: Walkable Urban vs. Drivable Sub-urban Walkable Urban Valuation Premiums OFFICE HOTEL* RETAIL FOR-SALE RESIDENTIAL RENTAL APARTMENTS 134% 120% 54% 41% 20% 0% 20% 40% 60% 80% 100% 120% 140% Significant and increasing real estate premiums for Walkable Urban real estate over Drivable Sub-urban across all product types. Pent-up demand for walkable urbanism…probably take 20-30 years to satisfy (2% added in good year) 90%

5. Shifting Income Property Market Share to Walkable Urban (Absorption per Real Estate Cycle) 27% 1992-2000 39%46% 73% 61%54% 2001-20082009-Present Walkable urban income property development has increased its market share during the past three cycles versus Drivable Sub-urban. WALKABLE URBAN DRIVABLE SUB-URBAN

6. Key Land Use Metrics in Metropolitan Boston REGIONAL LAND: POPULATION: EMPLOYMENT: OFFICE INVENTORY: 92.1% 12%28%58% 26%15%49%9% 47%12%22%19% 1.2%2.4% 4.4% 2% WALKUP WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-DIVISION

7. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

8. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

9. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

10. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

11. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

12. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

13. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

14. DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER EMERGING WALKUPS WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-URBAN 57 Established WalkUPs and 14 Emerging WalkUPs The densest of all the metropolitan development options Substantial opportunity for infill development and redevelopment 74% of Established WalkUPs are served by rail transit 5 of 7 possible WalkUP types in Metro Boston Greenfield/Brownfield debut with Assembly Row WalkUPs in Metro Boston

15. Product Distribution by WalkUP Type FOR-SALE RESIDENTIAL: 9% RENTAL APTS: 8% RETAIL: 3% OFFICE: 77% HOTEL: 3% FOR-SALE RESIDENTIAL: 25% INDUSTRIAL: 8% CIVIC/OTHER: 26% OFFICE: 14% RETAIL: 11% RENTAL APARTMENTS: 15% UNIVERSITY & HOSPITAL: 1% Regional Urban Centers Downtowns WalkUPs DOWNTOWN More Office space as % Adding Residential & Retail in the future REGIONAL URBAN CENTERS More Retail & Residential as a % More Civic space

16. Average Rents by Product Type Economic Rankings DRIVABLE EDGE CITY COPPER SILVER GOLD PLATINUM OFFICERETAILRENTAL APARTMENT FOR-SALE RESIDENTIAL OVERALL $0 $10 $20 $30 $40 $50 $60

17. Economic Rankings $0 $10MM $20MM $30MM $40MM EDGE CITIES Assessed Valued per Acre ($ Millions) COPPERSILVERGOLDPLATINUM $34.2 MM $11.8 MM $3.7 MM $1.5 MM $0.6 MM PLATINUM WALKUPS Back Bay Beacon Hill Financial District (Boston) MIT/Kendall Square

18. Walkable Urban Development Generates Greater Tax Revenue Property Tax Revenue by Acre WALKUPSEDGE CITIES WALKABLE NEIGHBORHOODS DRIVABLE SUB-URBAN WalkUPs: 12x the tax revenue of Edge Cities Walkable Neighborhoods: 6x the tax revenue of Drivable Sub-Urban

19. Social Equity Rankings -2.0 0 1.0 2.0 3.0 4.0 -3.0-2.5-2.001.01.52.02.5-1.5-0.50.5 -1.5 -0.5 0.5 1.5 2.5 3.5 DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-DIVISION AFFORDABILITY ACCESSIBILITY/OPPORTUNITY Accessibility/Opportunity vs. Affordability Accesibility: % of Regional Population That Can Access WalkUP by Transit Non-car Commute Share Opportunity: Job Density School Test Scores Affordability: Housing & Transportation Costs Housing Cost Burden on Low- Income Households

20. Social Equity Rankings -2.0 0 1.0 2.0 3.0 4.0 -3.0-2.5-2.001.01.52.02.5-1.5-0.50.5 -1.5 -0.5 0.5 1.5 2.5 3.5 DOWNTOWN DOWNTOWN ADJACENT URBAN COMMERCIAL URBAN UNIVERSITY REGIONAL URBAN CENTER WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-DIVISION AFFORDABILITY ACCESSIBILITY/OPPORTUNITY Considering both Housing & Transportation Costs: WalkUPs and Walkable Neighborhoods are more affordable than their Drivable Sub-Urban counterparts: 43% vs 48% of HH income From a Social Equity Perspective: High Economic Ranking WalkUPs tend to offer: High levels of accessibility Low transportation costs High opportunity BUT High housing costs Poor test scores

21. WalkUPs: Education & GDP $10k $30k $50k $70k $90k $05%10%25%35%40%45%50%15%20%30% $20k $40k $60k $80k METRO PER CAPITA GDP $0 % OF METRO POPULATION AGE 25 AND OVER WITH BACHELOR’S DEGREE OR HIGHER R2 = 0.62 BOSTON Y = 150,389.65X + 7,258.51 Educational Attainment & GDP Per Capita (2013 per capita GDP, chained 2009 dollars)

22. A major structural shift towards walkable urbanism appears to be happening in Boston, especially transit- oriented development (TOD) Rising market share and high valuation premiums are indicators of this shift Maintenance & expansion of transit system is critical for the economic success of region Rising prices raise social equity concerns; attainable housing policies must be put in place Conclusions

23. The Blizzards of 2014-2015 showed how vulnerable WalkUPs and Walkable Neighborhoods are given the years of deferred maintenance and the need for expansion of the MBTA rail and bus transit system…. But, walkable urban places generates much higher government revenues to help pay for the needed resources Is Boston Strong? RESILIENCE OF THE TRANSPORTATION SYSTEM

24. Thank you

25. Average Home Sale Price (Cost per Square Foot) Income Property Is Shifting to Walkable Urban 20042006200820092010201120122013 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 WALKUP WALKABLE NEIGHBORHOOD DRIVABLE EDGE CITY DRIVABLE SUB-DIVISION