The thousands of new units built in Somerville in recent years, many of them luxury products at Assembly Row, have served as a valuable relief valve, siphoning high-end buyers and renters off of the city’s market and keeping its high prices from climbing even higher. Image courtesy of Federal Realty

While there have been many doomsday views of retail written recently, that is far from the truth for the Boston area. High demand for commercial space in this market continues, and the result is that non-core urban neighborhoods are thriving in all asset classes. 

In Somerville, transformative projects both at Assembly Row and Union Square are creating mixed-use, transit-oriented neighborhoods with amenities and character that rival Kendall Square and The Seaport for lab, office and R&D space. Workers are looking to eliminate commutes, so companies are drawn to neighborhoods where employees can also find a high quality of life, or access via public transit, biking or walking or, if possible, all of the above. 

With the recent lease signing with PUMA to bring their North America Headquarters to Assembly Row, Federal Realty also announced the launch of Phase 3 of the development which continues the evolution of a once abandoned brownfield site into a thriving neighborhood with 1,400 residents and 6,000 workers on-site each day. Ahead in Phase 3, we are on track to deliver a new 500-unit residential building with ground floor retail space, as well as the office building at 455 Grand Union Blvd. These new buildings will offer several prominently located corner restaurant spaces; along with traditional retail spaces and more than 12,000 square feet of proposed creative, “incubator” street-level space to attract innovative, digitally native retail brands to the neighborhood. Showrooming as a retail concept is blossoming. The neighborhood’s prime access to almost 50 colleges and universities connects retail tenants to a well-educated workforce and a more affluent consumer base. Having a dedicated train stop on the MBTA’s Orange Line also widens the workforce and consumer population at Assembly Row. 

Events Complement Retail Environment 

Federal Realty continues to focus on curating authentic and innovative experiences for tenants, residents, visitors and workers. Executing forward-thinking, creative strategies was critical in Phase 1, when Federal Realty established the Assembly Row vision in 2004. We will continue to evolve and expand those ideas in our future phases. Complementary retail and food offerings, such as Smoke Shop BBQ, La Cucina and Lucky Strike Social provide great dining and entertainment options. We are also focused on adding more local and regional retail and service uses to meet the demands of our residents and growing office population. Assembly Row Dental, Parelli Optical and Mass. General Physicians’ specialty medical clinic provide services and offerings that did not exist in the earlier phases of the project. 

The health and beauty category will also see growth in Phase 3, along with expanded fine-dining options and fast-casual concepts. Convenience, accessibility and varied options at the street-level will only continue to unlock future potential for office and residential growth. And, in a natural extension of the residential component, we are seeing a growing demand for shared co-working spaces. 

Liz Ryan

Assembly Row is also home to the 730,000-square-foot Partners HealthCare corporate headquarters, which hosts nearly 4,200 workers daily to benefit from this enhanced neighborhood. The on-site Assembly MBTA Station and direct access to Interstate 93 provide unrivaled access to Greater Boston. Upon completion of Phase 3, Assembly Row will include more than 55 shops, 22 restaurants, 1,514 residential units, 1.1 million square feet of class A office space and The Row Hotel at Assembly Row, a 158-room Marriott Autograph Collection hotel, which opened in 2018. Additional entitlements remain for approximately 1.5 million square feet of commercial space and 329 residential units, so the neighborhood can continue to evolve and develop an ever more compelling and creative destination. 

Retail is far from dead in the Boston area – in fact some of the most creative and inspirational experiences are here. From the “The Current” pop-up in the Seaport to the Time Out Market Food Hall in the Fenway to our growing neighborhood at Assembly Row, innovation is everywhere. By evolving traditional retail to create authentic neighborhoods and walkable destinations, shoppers become residents who become workers – all of whom are looking for a high-quality and convenient shopping, eating and living experience to improve their daily lives. 

Liz Ryan is vice president for regional leasing at Federal Realty Investment Trust.