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Despite a population with impressively high levels of educational attainment and entrepreneurialism, Newton and Needham are struggling to attract and retain startups that would enable them to build a Cambridge-like innovation cluster, according to a new report.
The Newton-Needham (N2) Corridor Task Force, an economic development coalition formed by the Newton-Needham Chamber of Commerce, is seeking to revitalize 500 acres of predominantly commercial properties straddling Route 128. The group today released an economic development study and marketing plan assembled by Camoin Assoc.
Among the findings: both communities lag in attracting smaller growing companies, with many residents commuting to Boston and Cambridge to work at tech and life science companies. Lack of vitality in suburban workplace locations, distance from public transit and high housing costs remain major obstacles to employers’ recruitment of younger workers and willingness to locate in the two communities.
The region has had some recent successes, but some of the largest projects have involved moves by companies already within the two towns.
Normandy Real Estate Partners is redeveloping the former New England Business Center into a 1.8 million-square-foot mixed-use project called Needham Crossing, including apartments and updated office space. Appliance maker SharkNinja is the second major office tenant committing to the area, relocating from Wells Avenue in Newton. TripAdvisor opened a new build-to-suit headquarters nearby at 400 First Ave. in 2015, in a relocation from Needham Street in Newton.
But the study said the local startup scene lags, with only 13 local companies that raised funding from angel investors or venture capital in 2015. Some of those have already relocated to Cambridge or are located in Newton and Needham but outside the N2 Corridor.
And while the two communities’ residents obtained more than 1,000 patents in 2015 – a rate nearly nine times the U.S. average – 709 went to companies located in Massachusetts but outside Newton and Needham.
Along with Needham Crossing, the report spotlights the Wells Avenue office park as having potential to support additional office development, particularly if it adds retail amenities and a second access road. Industrial properties scattered amid the strip malls of the Highland Avenue and Needham Street corridors offer opportunities for startups to lease affordable space. And plans for a mixed-use redevelopment of the Clarks Americas site in Newton Upper Falls by Northland Development could upgrade multimodal transportation options and revitalize the neighborhood.
On the housing front, Needham recently surpassed the state’s 10 percent goal for affordable housing inventory. Newton Mayor Setti Warren this week announced a housing generation program, including raising the affordability requirement in some projects from 15 to 20 percent and allowing accessory apartments in single-family homes.
The report’s findings will be used to develop specific programs to encourage growth clusters.
