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22Q3 Boston Industrial Market Report

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Key Takeaways

  • Occupancies have improved over the past year.
  • The pace of construction will slow, but large deliveries are still in the pipeline for 2022 and early 2023.
  • Demand and leasing favor mid-size blocks.
  • Rents continue to rise but could stabilize in the coming quarters.

Despite uncertainty in the macroeconomy, Boston’s industrial fundamentals remained strong entering the second half of 2022. High inflation, increasing interest rates, and falling stock prices have dampened the outlook for business investment. Numerous companies have announced pull back in large space requirements in response to current economic trends. However, demand remains in firms targeting footprints in the small to mid-size range and in high-quality space. These factors contributed to metro Boston’s positive net absorption and vacancies declining to 4.8%, the lowest in recent quarters. Overall asking rates reached $14.10 per square foot, continuing seven quarters of positive gains, although they are predicted to start stabilizing. Industrial investment sales were down from the previous quarter. Between now and mid-year 2023 a lot of new space will be delivered that may impact the supply-demand balance in the market.

 

 


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22Q3 Boston Industrial Market Report

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Jeffrey Myers

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As Research Director, Jeff Myers leads the research operation of the Boston office of Colliers. A 20-year industry veteran, Jeff brings an extensive commercial real estate background that includes expertise in city planning, market research, landlord representation and more.

Since joining Colliers in September 2021, he has focused on synthesizing real estate, demographic, and economic variables to support brokers and provide clients with strategic and actionable insights. In addition to tracking and analyzing pertinent trends, Jeff leads the production of quarterly reports highlighting activity in the market.

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