BOSTON–Newmark’s recent Industrial Insights Report highlights office-to-industrial conversions driven by divergent market fundamentals .
Nationally, the divergence in occupancy rates between industrial and office is increasingly driving investors and developers to consider industrial redevelopment of office space, according to the Newmark report.
In Boston, the delta between industrial market vacancy rate (4.5%) and office market vacancy rate (14.6%) is over 10 percentage points.
In addition, 1.7 million square feet in Boston has been converted/proposed for conversion since 2018. The product typically averages land area of 30.1 acres, a 4.2-mile distance from a major highway and a 1985 vintage, according to Newmark.
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