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21Q1 Boston Industrial Market Report

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Industrial remains a leading asset in Greater Boston boasting strong first quarter numbers after the banner year of 2020. Q1 saw 409,000 SF of positive absorption with leasing activity throughout the market. Greater Boston maintains the record-low 8.2% vacancy for the market as demand remains high and new construction is met with fast lease up. Aggregate asking rents have stabilized in recent quarters hovering around the $10/SF mark as a market average. This stabilization can be attributed to much of the new construction leasing up by delivery or shortly thereafter with lease comps for spaces targeting high bay and cGMP users posting market leading rental rates.

Demand remains strong across the market as available space is in short supply and the industrial market continues to push west expanding into Worcester County where development sites are more abundant. Logistics and e-commerce users continue to seek new high bay space along the major arteries making warehouse development and renovation with high clear heights and ample bays a strong play. Life science continues to escalate industrial space needs as cGMP development is gaining increased attention to match the new biomanufacturing demand.


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21Q1 Boston Industrial Market Report

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Aaron Jodka

National Director of Capital Markets Research

Boston

As Research Director | U.S. Capital Markets, Aaron is responsible for all aspects of research within the Capital Markets platform. He synthesizes and interprets a variety of data and information to stay ahead of trends that put our clients in an optimal position to make informed decisions. Additionally, he ensures that Colliers professionals are providing superior service and deliverables to existing and potential clients. At the same time, he promotes the Colliers brand via best-in-class research reports, weekly insight posts, thought leadership, and contributions to numerous panels, media outlets, and industry events.

Aaron collaborates with every team at the firm and wears many hats: in-house economist, advisor, consultant, thought leader, strategic business analyst, presenter, and, of course, researcher. He connects with various industry experts within the Colliers organization to provide a customized solution for each client.

With a deep understanding of markets throughout the country, he provides a unique perspective on market dynamics across asset types and investment strategies, providing clients with tailored data and analytics to ultimately guide decision-making solutions.

As the Managing Director, Research & Client Services, Aaron oversees all aspects of Client Service offerings in Boston, including Research, Marketing, Graphics, Financial Analysis, Lease Administration, and Client Service Coordination. He ensures that our brokers are providing superior service and deliverables to existing and potential clients. At the same time, he assists brokers with pitch preparation and delivery, while continuing to push the Colliers brand via best-in-class research reports, thought leadership, and offers market insight as a monthly guest on Bloomberg Radio’s Baystate Business, and is a frequent resource for Bisnow, Banker & Tradesman, The Boston Globe, Boston Business Journal, The Real Reporter, and other publications.

Aaron's team manages the information and intelligence in our proprietary database, which, dating from the late 1980s, includes detailed property statistics on nearly 220 million SF of office space as well as on lab properties in the Greater Boston area. We also track more than 150 million SF of industrial properties in our market.

Before joining Colliers, he spent 11 years with Property & Portfolio Research (PPR), now CoStar Portfolio Strategy. There, he advised institutional clients on their commercial real estate investment strategies across property sectors and also spoke at industry events, quarterly CoStar webinars, and in front of client audiences. Aaron also led and directed a team of economists who monitored property markets across the United States. Near the end of his tenure, he helped establish a new business unit at CoStar, leading in the hiring, training, and coaching of a team of 50 market analysts. 

Outside of the office, Aaron can be found cheering on his children at their extracurricular activities. He also enjoys hiking, travel, relaxing at home or at the lake, or plugging away at one home project or another. Last but not least, he's an avid fan of Boston sports teams.

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Dion Sorrentino

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Dion Sorrentino joined Colliers International Boston as a Research Analyst in 2019. In this capacity, he contributes to the production of the firm’s quarterly Market Viewpoints, as well as managing the distribution of its weekly newsletter, Week in Review. In addition, he collaborates with brokerage and advisory teams on their client work and presentations.

Dion assists in managing the Colliers International Boston proprietary research database, which contains data on over 360 million square feet of commercial space in approximately 4,000 buildings in the Greater Boston area, encompassing Boston, Cambridge, and Suburban Boston and the insights it delivers. Dion also works with the rest of the research team to provide timely and reliable data that is critical to making effective and well-informed business decisions, including available space surveys and market trend analyses.

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