BOSTON—Approximately 14 million square feet of industrial space is currently underway in Greater Boston, according to a new report from Colliers.
More than two million square feet of new industrial space was built during the 4th quarter of 2022, underscoring the market as a key growth area in Greater Boston.
Here are other key takeaways from the Colliers report:
- Vacancy growth in the quarter had the largest increase in recent years, but the rate is still significantly below the 10-year average.
- Asking rents decreased slightly.
- At 6.2% vacancies had their most significant rise in recent quarters but they are still below pre-pandemic levels in Q1 2020 of 7.8%.
- More than 2 million square-feet of new product was delivered in the quarter, both spec and build to suit properties, and spec ground breakings continued to happen despite economy uncertainties.
- Absorption finished negative at 363,205 square feet but in the North market, the only one to have positive absorption, more than 1.4 million square-feet was absorbed this quarter.
- The uncertain macroeconomic climate at the end of 2022 led corporations nationwide to shelve large requirements, Boston included.
- In Q4, however, some of that demand for large space has come back, with multiple big-box retailers looking for one million square feet or more.
“With recessionary pressures still in the macroeconomy, the Greater Boston industrial market softened slightly, but industrial fundamentals remain healthy,” the report said.