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.