A river – the Nashua – has always run through it, but Fitchburg these days is hoping that a man-made power source will provide the Central Massachusetts city with its next great economic opportunity.
Encouraged by the renovation of other aging mills into modern uses, members of the Ansin family are converting a former Fitchburg shoe factory into an e-commerce center, hoping to lure a wave of high-tech and dot-com companies. One key to the 300,000-square-foot project, they say, is a $2 million infusion of fiber optic cabling to the complex, a critical prerequisite for today’s technology firms.
“There is no building within a 45-minute drive that has this kind of power,” proclaimed Richard Herlihy, chief financial officer of the Massachusetts Innovation Center. “It’s more than you’ll find in most cities today.”
MIC is a combination development and incubator operation looking to attract both established tenants and start-ups, offering the latter technical assistance in exchange for a piece of the company’s potential profits. Besides help writing business plans and obtaining capital support, MIC will provide inexpensive space for current and future expansion of fledgling Internet and high-tech ventures. There will also be a 20,000-square-foot data center at the building to let companies store their network information at the property.
While acknowledging that the project is farther afield than most Bay State high-tech firms have heretofore wandered, Herlihy and leasing broker Daniel W. Krysiak said they believe the facility has plenty to offer, including asking rents in the $13 per square foot range.
According to Meredith & Grew, which has identified a “Techno Corridor” that includes Boston, Cambridge and suburban markets running north to Chelmsford and west to Westborough, rents have jumped 25 percent this year, and should grow 10 to 20 percent in the coming six months. Boston and Cambridge rents are exceeding $50 per square foot, while the overall suburban market ranges between $24 and $48 per square foot, according to Leslie Ouellette, M&G’s director of research.
“The market is moving at a furious pace,” said Krysiak, adding it is difficult to lease quarters close to the Hub, no matter what the price. With that in mind, Herlihy said companies will be forced to migrate outward. Not only does the MIC plant have the cheap rent, the developers are also offering expansion opportunities and flexible lease terms. Whereas many landlords require security deposits, advance rent and lengthy leases from new age technology companies, MIC has the ability – and willingness – to be less stringent, Krysiak said.
Besides already owning the property, the Ansin family will keep rents low because its prime motivation is bringing new jobs to Central Massachusetts, Krysiak said. MIC management is also well-versed in the obstacles faced by high-tech companies, he said, given that founder Robert Ansin runs his own Internet retail firm, while Herlihy most recently managed information services for the L.B. Evans’ Son Co.
“Bob and Rick understand the needs of high-tech companies, especially for office space, and having a landlord that sits on the other side of the table is a very nice benefit to have,” said Krysiak, a broker with Boston-based McFarland & Finch.
The building’s open layout and preserved condition will also help keep costs down, Krysiak said, although MIC has announced a $30 million restoration. Conceived by Steffian Bradley Assoc. of Boston, it features the planned demolition of three buildings to provide for a campus-like courtyard in the middle of the facility. Work will begin next month, with Mullaney Corp. of Leominster acting as general contractor.
Even with construction about to commence, some industry observers are questioning the demand. Scott R. Hughes of Hughes Property Corp. in Framingham noted that the Devens Commerce Center in Ayer, which is closer than Fitchburg, is one unfulfilled option for any companies which do leave the inner markets. M&G Senior Vice President/partner James L. Elcock said he believes most technology firms still want to remain within the Techno Corridor, no matter what the cost. While he acknowledged that Fitchburg could attract some firms in the early stages of formation, Elcock said most worry they would be unable to attract the best talent by being away from the core markets.
“A lot of these companies feel that to get the braintrusts and to get the people they want, they need to be in that Waltham, Lexington, Cambridge, Back Bay, Newton area,” Elcock said. “Fitchburg is really not the epicenter.”
Herlihy disagrees, insisting there is a built-in labor force buttressed by Fitchburg State College and Mount Wachusett Community College. Worcester Polytechnic Institute is also nearby, while many residents already have high-tech backgrounds, an outgrowth of Digital Equipment Corp.’s presence during the 1980s.
“If you’re the right kind of company, you’d be pleasantly surprised by the number of skilled people who would give up their hour-and-a-half ride east and stay here,” seconded Michael A. Lanava, executive director of the Fitchburg Redevelopment Authority. “It’s a lot more palatable than going the other way.”
The city is excited by the MIC initiative, Lanava said, supporting the idea that the fiber optic infrastructure will be a key selling point. He also noted that Agilent Technologies has recently established a presence in the area with its acquisition of a local firm.
“We applaud them for making the investment,” Lanava said of MIC. “Once they get this thing rolling, I think they’ll be in great shape.”
Lanava added there may be another opportunity to nurture the e-commerce activity via a 300,000-square-foot mill donated to the city last year by the departing General Electric Corp. Already environmentally restored, the mill could provide expansion space for MIC, he said, although Fitchburg hopes to use most of the facility for manufacturing jobs. It is currently in the process of marketing the mill, and is entertaining a variety of scenarios for redevelopment.
Refuting the skeptics, Krysiak said there is already a successful example of MIC’s formula at the former DEC headquarters in Maynard. At that converted mill, the 1.2 million-square-foot complex leased up in barely two years when it was re-invented as an e-commerce center. While Maynard is about 20 miles closer to Boston than Fitchburg, Krysiak said he believes the same attractions are in place. The MIC site will pattern itself after what is now known as Clock Tower Place in other aspects, he added, including 24-hour management and security, as well as on-site amenities such as a restaurant, day care center and health club.
“We’re really out to create an environment where you don’t have to go off-site at all,” said Krysiak. “It’s exactly the type of situation most of these companies are looking for, and we will provide it all for them here.”
