Demand for Boston Metro commercial space continues to increase with the region’s economic expansion, according to a report by Transwestern RBJ, summarized in the Boston Business Journal.
For example, industrial warehouse space in the Boston Metro reached record-low vacancies in 2015, while manufacturing space fell below a double-digit vacancy rate for the first time on record.
Lower vacancy rates are prompting higher rents throughout the industrial sector. Here are some highlights from the Transwestern RBJ report:
- Massachusetts added 2,437 industrial jobs during 2015.
- The Boston Metro warehouse market reached record low vacancy rate of 11%, while rents increased 2.4%.
- 92% of the 12.4 million sf of high-bay space in I-495 submarkets is occupied.
- Vacancy in the Central Areas submarket is at a record low of 4.6%.
- Vacancy rates of flex spaces throughout the Boston Metro dropped to 13.9%, representing the lowest level since 2001. Rents increased by 6.1%.
- The Route 128 South flex space submarket has seen 14 straight quarters of positive absorption.
- Manufacturing plants the Boston Metro experienced a 5.6% increase in rents from the 3rd quarter of 2015, while vacancy rates dropped 1.1%.
- Asking rents for Boston Metro area manufacturing plants have risen by 13% since the 4th quarter of 2014.
- I-495 South manufacturing properties have seen 2 straight years of positive absorption.
Overall, the outlook for Boston Metro commercial space across all sectors remains positive throughout 2016. The improvement in the industrial sector is especially encouraging, as it shows diversity to our economic growth, and provides a wide range of employment opportunities.
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