Greater Boston Industrial Market Absorbs More Than 2 Million SF in 12 Months

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indSTATus 3Q15--WarehouseBOSTON–Transwestern /RBJ has published its quarterly report on the Greater Boston industrial real estate market. “indSTATus – Q3 2015” highlights results in warehouse, flex and manufacturing property types.
According to the report, Greater Boston’s industrial real estate market remains strong, with more than 2 million square feet of absorption during the past 12 months. The warehouse market posted healthy positive absorption for Q3, though there was negative absorption in the flex and manufacturing sectors.
Here are the main findings from each property type:
WAREHOUSE
• Tenants absorbed 205,000 square feet of space.
• Vacancy dropped from 11.8 to 11.4 percent, tying its lowest point on record in 2001.
• Asking rates hit their highest point since 2008, at $5.78 per square foot.

 

FLEX
• Asking rates in the flex market increased to $8.69 per square foot from $8.56 last quarter.
• Negative absorption of 162,000 square feet pushed vacancy to 15.3 percent from 14.8 percent.
• This was only the second quarter in the past 15 quarters that absorption has been negative.

 

MANUFACTURING
• Negative absorption of 99,000 square feet drove vacancy to 11.0 percent from 10.3 percent.
• Asking lease rates moved up to $7.66 from last quarter’s $7.22.
• The sector has had 272,000 square feet of positive absorption during the last 12 months.

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