The WPJ
Commercial Real Estate News
Boston's Warehouse Sector Enjoying Record Low Vacancies in Mid-2016
According to a new Transwestern-RBJ commercial property report, the greater Boston industrial real estate market had a strong second quarter 2016.
"Greater Boston's warehouse market is on a historic run right now, with three consecutive quarters of record-setting low vacancy rates," said Northeast Research Director Chase Bourdelaise. "With the manufacturing market also back into positive territory, we now have all three industrial-related property types firing on all cylinders. While we don't expect record-setting results each quarter, the market is well-positioned for the remainder of the year."
Warehouse Market FAQs
- Vacancy dropped 0.5 percentage points to 9.6 percent, its lowest point on record and first time below 10 percent, on 529,000 square feet of positive absorption.
- The market is on a 16-quarter streak of positive absorption, with 6.5 million square feet absorbed during that four-year stretch.
- Asking lease rates dropped from $6.04 per square foot to $5.94 per square foot.
Manufacturing Market FAQs
- After a negative first quarter 2016, the manufacturing market posted 52,000 square feet of positive absorption, dropping vacancy to 10.9 percent from 11.0 percent last quarter.
- Since the start of 2015, the manufacturing market has posted a solid 160,000 square feet of positive absorption.
- Asking lease rates rose from $8.28 per square foot last quarter to $8.40 per square foot, its highest level since 2008.
Flex Space Market FAQs
- Another strong quarter in the flex market saw 259,000 square feet of positive absorption, pushing vacancy down 1.4 percentage points to 11.4 percent.
- Flex properties have seen positive absorption in 16 of the last 18 quarters, aggregating 2.6 million square feet during that time.
- Average asking lease rates hit the highest level since 2004, at a current price of $10.32 per square foot, up from last quarter's $9.22 per square foot.
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