The Boston Industrial market had a strong end to 2019. Absorption came to a net level of 1.3 million SF driving vacancy down to 9.1%, a 5 year low. Rent growth sustained at a healthy rate driven by new and renovated product on the market. Development for both build-to-suit and speculative construction continues market wide.
One of the largest players in the market has been Amazon who signed for over 1 million SF of space between the lease of the former Necco site in Revere and a location in Bellingham. Combined with its projects in North Andover and Westborough, as well as existing space and LOIs, Amazon is on track to have 1 SF per person in Massachusetts and grow to be the largest non-institutional occupier of space in the market. E-commerce and logistics lead leasing activity in the market now joined by increased interest from food distribution and cannabis operations.
With low vacancy, strong demand, and rising rents, industrial investment and development should continue at a healthy rate through 2020. The strong performance of the Massachusetts economy and of the Greater Boston real estate market make the region a safe real estate play and we should see continued growth in the coming years.