Massachusetts, October 17, 2025
News Summary
Governor Maura Healey has signed an Executive Order to create the Governor’s Advisory Council on Competitiveness, aimed at driving economic growth and improving the business climate in Massachusetts. The council will address key issues such as workforce development, taxation, and regulation, led by business leaders Dan Kenary and Mark Nunnelly. The initiative comes amid significant leasing activity in the Massachusetts commercial real estate market and legislative efforts to boost housing and economic development.
Boston
Governor Maura Healey signed an Executive Order to create the Governor’s Advisory Council on Competitiveness, a new state-level body charged with advising the governor on strategies to drive economic growth and improve the business climate in Massachusetts. The council will be co-chaired by business leaders Dan Kenary and Mark Nunnelly, and will tackle workforce, tax, incentive, innovation and regulatory issues while coordinating input from public and private stakeholders.
Key actions and leadership
The Council is intended to advise the governor on driving economic growth and enhancing the state’s business climate. Dan Kenary, president & co-founder of Harpoon Brewery, and Mark Nunnelly, chairman of Toolbox Holdings and Foundation, have been appointed as chairs of the Competitiveness Council. The council will address issues related to taxation, business incentives, workforce development, innovation support, and business regulation. Healey emphasized the need to bring various stakeholders, including business, labor, and local leaders, together to strengthen Massachusetts’ economic leadership.
Market context and recent transactions
The Massachusetts office market saw significant lease renewals and new agreements, including BNY’s 205,000 square-foot lease renewal at One Boston Place. Other notable leases include Bain Capital’s renewal of 378,000 square feet at 200 Clarendon St. and PwC’s 335,000 square-foot lease renewal at 101 Seaport Blvd. Boston office leasing activity in Q3 reached its highest level since the beginning of the pandemic, with a total leasing tally of 1.91 million square feet reported.
In the residential sector, construction is set to begin on an 88-unit apartment building at 59 Everett St. in Allston, part of a mixed-use project with 385,700 square feet of commercial space planned. The city’s office-to-residential conversions have risen, with the proposal to convert 18 office buildings into approximately 690 apartments. Massachusetts’ MBTA Communities Law is pushing towns to develop new multifamily zoning districts around transit stops, leading to proposals adding over 1,000 residential units in towns like Lexington.
Legislation and public investment
Governor Healey’s Affordable Housing Bond bill, the largest in the state’s history at $5.2 billion, was passed, focusing on mixed-income housing development and renovating public housing. The state’s Economic Development bill of $4 billion aims to attract investments into the life sciences and clean technology sectors. These measures are intended to support both housing affordability and targeted economic growth in key industries.
Sector challenges and shifting uses
The life sciences sector faces challenges with increased vacancy, leading some developers to halt projects. The impact of healthcare system Steward Health Care’s bankruptcy has highlighted issues in hospital real estate leasing in Massachusetts. A growing trend is seen where distressed properties are considered for conversion back to office use, reflecting evolving demand across property types.
Local development and transit-linked growth
Major new developments and plans are underway in various stages in Allston following the opening of the Boston Landing MBTA station in 2017. These developments, together with conversions and new multifamily zoning, show how transit-oriented planning and local projects are shaping near-term growth and housing supply.
What this means for the state
The Governor’s Advisory Council on Competitiveness is positioned to coordinate input from business, labor, local officials and state agencies on tax policy, incentives, workforce training and regulatory reforms. The combination of legislative measures, investment bills and active leasing and development activity suggest a market that is adjusting to recent shocks while seeking targeted growth in life sciences, clean tech and housing. The overall economic climate and market activity in Massachusetts show resilience despite previous concerns expressed regarding property tax hikes and hospital system stability.
FAQ
What executive action did the governor take?
Governor Maura Healey signed an Executive Order to create the Governor’s Advisory Council on Competitiveness.
What is the council’s purpose?
The Council is intended to advise the governor on driving economic growth and enhancing the state’s business climate.
Who are the council chairs?
Dan Kenary, president & co-founder of Harpoon Brewery, and Mark Nunnelly, chairman of Toolbox Holdings and Foundation, have been appointed as chairs of the Competitiveness Council.
What topics will the council address?
The council will address issues related to taxation, business incentives, workforce development, innovation support, and business regulation.
How did the governor describe stakeholder involvement?
Healey emphasized the need to bring various stakeholders, including business, labor, and local leaders, together to strengthen Massachusetts’ economic leadership.
What recent major office leases were reported?
The Massachusetts office market saw significant lease renewals and new agreements, including BNY’s 205,000 square-foot lease renewal at One Boston Place.
Are there other notable lease renewals?
Other notable leases include Bain Capital’s renewal of 378,000 square feet at 200 Clarendon St. and PwC’s 335,000 square-foot lease renewal at 101 Seaport Blvd.
What residential projects are moving forward?
In the residential sector, construction is set to begin on an 88-unit apartment building at 59 Everett St. in Allston, part of a mixed-use project with 385,700 square feet of commercial space planned.
How prevalent are office-to-residential conversions?
The city’s office-to-residential conversions have risen, with the proposal to convert 18 office buildings into approximately 690 apartments.
How is zoning around transit changing?
Massachusetts’ MBTA Communities Law is pushing towns to develop new multifamily zoning districts around transit stops, leading to proposals adding over 1,000 residential units in towns like Lexington.
What major housing legislation passed?
Governor Healey’s Affordable Housing Bond bill, the largest in the state’s history at $5.2 billion, was passed, focusing on mixed-income housing development and renovating public housing.
What economic development funding was enacted?
The state’s Economic Development bill of $4 billion aims to attract investments into the life sciences and clean technology sectors.
What problems does the life sciences sector face?
The life sciences sector faces challenges with increased vacancy, leading some developers to halt projects.
What effects did Steward Health Care’s bankruptcy have?
The impact of healthcare system Steward Health Care’s bankruptcy has highlighted issues in hospital real estate leasing in Massachusetts.
Are distressed property conversions occurring?
A growing trend is seen where distressed properties are considered for conversion back to office use.
How active was Boston’s office leasing in Q3?
Boston office leasing activity in Q3 reached its highest level since the beginning of the pandemic, with a total leasing tally of 1.91 million square feet reported.
What development activity is occurring in Allston?
Major new developments and plans are underway in various stages in Allston following the opening of the Boston Landing MBTA station in 2017.
What is the overall market outlook?
The overall economic climate and market activity in Massachusetts show resilience despite previous concerns expressed regarding property tax hikes and hospital system stability.
Quick Reference Table
| Topic | Key Details |
|---|---|
| Executive action | Governor Maura Healey signed an Executive Order to create the Governor’s Advisory Council on Competitiveness |
| Council leadership | Dan Kenary and Mark Nunnelly appointed as chairs |
| Primary council focus areas | Taxation, business incentives, workforce development, innovation support, and business regulation |
| Major office leases | BNY 205,000 sq ft at One Boston Place; Bain Capital 378,000 sq ft at 200 Clarendon St.; PwC 335,000 sq ft at 101 Seaport Blvd. |
| Q3 leasing | Boston office leasing activity: 1.91 million sq ft |
| Residential projects | 88-unit building at 59 Everett St. in Allston; mixed-use project with 385,700 sq ft commercial space planned |
| Conversions | Proposal to convert 18 office buildings into approximately 690 apartments |
| Zoning changes | MBTA Communities Law prompting proposals adding over 1,000 residential units in towns like Lexington |
| Major bills | Affordable Housing Bond bill: $5.2 billion; Economic Development bill: $4 billion |
| Sector risks | Life sciences vacancy; Steward Health Care bankruptcy impact on hospital leasing; distressed property conversions |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Connect CRE: Construction Okayed for Two-Building Office Residential Project in Allston
- Bisnow: The 7 Biggest Stories of 2024 in Boston CRE
- Connect CRE: Boston’s Empty Federal Offices Represent Re-Use Opportunities
- Google Search: Boston Real Estate News
- Wikipedia: Economy of Massachusetts
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