CONCORD, MA–Demand for small warehouse space in Greater Boston’s suburbs continues to rise, especially along Route 128 and Route 495, according to a report by O’Brien Commercial Properties.
“This trend is fueled by the needs of smaller warehouse users and tighter local zoning regulations,” the report said. “Recent zoning changes have limited areas available for warehouses, contractor yards, and storage, often replacing them with residential zones or stricter regulations.”
The report said that these zoning shifts have increased the prices for smaller warehouses and industrial spaces, both for sale and lease.
“While the office leasing market remains stagnant, warehouse space thrives with strong rents and low vacancy rates for standalone and connected contractor bays,” the report said. “Due to high construction costs and interest rates, speculative development is scarce. Investors are focusing on adaptive reuse, converting existing office or R&D spaces into warehouses. Demand for small warehouse spaces shows no signs of slowing down.”
The report was prepared by Keith Gurtler of O’Brien Commercial.
