According to a new Transwestern-RBJ commercial property report, the greater Boston industrial real estate market had a strong second quarter 2016.
"Greater Boston's warehouse market is on a historic run right now, with three consecutive quarters of record-setting low vacancy rates," said Northeast Research Director Chase Bourdelaise. "With the manufacturing market also back into positive territory, we now have all three industrial-related property types firing on all cylinders. While we don't expect record-setting results each quarter, the market is well-positioned for the remainder of the year."
Warehouse Market FAQs
Vacancy dropped 0.5 percentage points to 9.6 percent, its lowest point on record and first time below 10 percent, on 529,000 square feet of positive absorption.
The market is on a 16-quarter streak of positive absorption, with 6.5 million square feet absorbed during that four-year stretch.
Asking lease rates dropped from $6.04 per square foot to $5.94 per square foot.
Manufacturing Market FAQs
After a negative first quarter 2016, the manufacturing market posted 52,000 square feet of positive absorption, dropping vacancy to 10.9 percent from 11.0 percent last quarter.
Since the start of 2015, the manufacturing market has posted a solid 160,000 square feet of positive absorption.
Asking lease rates rose from $8.28 per square foot last quarter to $8.40 per square foot, its highest level since 2008.
Flex Space Market FAQs
Another strong quarter in the flex market saw 259,000 square feet of positive absorption, pushing vacancy down 1.4 percentage points to 11.4 percent.
Flex properties have seen positive absorption in 16 of the last 18 quarters, aggregating 2.6 million square feet during that time.
Average asking lease rates hit the highest level since 2004, at a current price of $10.32 per square foot, up from last quarter's $9.22 per square foot.