BOSTON—The Greater Boston industrial market remained healthy through consistently rising rents and vacancies during the second quarter, according to Colliers.
There is a strong tenant demand for spaces in the mid-size range and the Boston area has more than 15.5 million square feet of active construction across the market with projects still awaiting delivery in 2022.
Here are additional highlights from the Q2 report:
- Vacancies fell by 0.3 percentage points and by 1.6 percentage points year-over-year.
- Negative absorption in the quarter can be explained by one large block of space on the market that increased sublease availability by 66%.
- Demand for e-commerce space, an integral part of the Greater Boston industrial market, has been picking up in recent quarters.
- According to the U.S. Census Bureau, across the U.S. e-commerce sales make up 14.3% of total retail sales, up 8.7 percentage points over the past decade.
- Competition for last-mile distribution center sites is growing in Boston due to the booming life science industry and the severe lack of developable land close to the city.
- Industrial rents in the Boston market increased by 78% over the last five years.
- Quite a few mid-size blocks of space were taken off the market this quarter by tenants across different industries.
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