- Developers are converting underutilized buildings to deliver top-quality industrial space.
- Vacancies ticked up slightly but finding large blocks of high-quality space remains challenging.
- Rents continued to rise to $13.81 per square foot in Q1.
- There is 12.2 million square feet of construction in the pipeline, with buildings set to deliver later this year.
Fundamentals in Greater Boston’s industrial market started out the year strong, with rents still rising and quality space remaining hard to find. Absorption for the quarter was negative, but the delivery of new properties later in the year will allow more absorption. At 5.3%, industrial vacancies increased by 0.1% after a year of decreases. Asking rates, however, haven’t slowed down in their quarter-over-quarter growth, ending Q1 at $13.81 per square foot for the overall market, 25% higher than in Q1 2021.