Perry Brokerage Releases Industrial Real Estate Report for 2nd Quarter

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BOSTON—Perry Brokerage released a report on Greater Boston’s commercial industrial real estate, reporting a positive absorption of 162,000 square feet driven by significant warehouse activity in the second quarter of 2017.

Here are other highlights from the report:

  • Critically low vacancy levels for preferred industrial and warehouse space in premium locations,
  • A likely increase in demand for Streetcar Ring warehouse as retailers look to shorten urban delivery times.
  • New supply expected within 12 months, though likely insufficient given rising demand levels.
  • Growing rent rolls at most properties, given expected well-rounded continued demand.
  • Faster promised delivery times by online retailers could be a boon to the 6.1 million sf Streetcar Ring warehouse submarket.
  • Five warehouse move-in’s larger than 70,000 sf was highlighted by MBTA contractor Mancon’s move into 88,000 sf in Stoughton.
  • Industrial rents may be driven by a scarcity of high quality space; rates are 3.4 percent above year-ago levels.
  • Warehouse inventory with ceiling heights of at least 30 feet are 4.4 percent vacant.
  • Devens warehouse is a scant 0.6 percent; it was 29.6 percent at year- end 2012.
  • Just 535,000 sf is currently under construction across property types as tenants demonstrate a decided preference for newer space.
  • Properties experiencing at least 5,000 sf of positive demand out- numbered those experiencing negative absorption 40 to 32.
  • Frenetic investment included The Davis Companies acquisition of 88 Black Falcon Avenue, which includes a 191,000 sf industrial facility.

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