The WPJ
Commercial Real Estate News
Boston Industrial Market Enjoying Strong Gains in 2015
According to a new report by Transwestern, the Greater Boston industrial market posted strong gains during second-quarter 2015, with 410,000 square feet of positive net absorption. "While not quite as strong as in some of our prior reporting periods, the industrial market maintained its positive momentum, reaching a fourth straight quarter of positive absorption," said Northeast Research Director Chase Bourdelaise. "Based on the related employment data, there's little reason to believe this won't continue."
Boston industrial market highlights include:
- Warehouse - Tenants absorbed 435,000 square feet of space, lowering vacancy to 11.8 percent from 12.6 percent last quarter. During the past three years, the vacancy rate has dropped 8.0 percent. Asking lease rates remained stable at $5.69 per square foot in the second quarter.
- Flex Space - Boston added 301,000 square feet of positive absorption during the second quarter, pushing vacancy down to 14.8 percent from 15.9 percent last quarter. Asking lease rates increased to $8.56. Tenants have absorbed 1.8 million square feet of flex space during the past three years.
- Manufacturing - This segment of the market experienced negative 25,000 square feet of absorption, raising vacancy to 10.3 percent from 10.1 percent last quarter. Asking lease rates rose to $7.33. Despite the second quarter's negative absorption, the flex market has notched 558,000 square feet of positive absorption during the past 12 months.
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