New Hampshire's industrial occupancy rate finished the year relatively flat, but the market remains strong as investment sales flourish and rents continue to rise. With only a 0.2% dip in the occupancy rate (300,00± SF), rents steadily climbed with a 6% increase ($0.37 PSF) year-over-year.
While rates remain historically high, much of what remains faces a shared challenge: functional obsolescence. As companies adapt to new technology it creates a need for higher bays, more electricity, and different layouts.
The occupancy rate remained steady throughout the year, but had an increase of 2.3% (860,000 SF) year-over-year. Even with this shift in occupancy, rents remained practically unchanged with a minor bump of 0.4% ($0.07 PSF) year-over-year.
One of the biggest challenges going into 2019 was the lack of large blocks of office space. This challenge is still true in Manchester’s Central Business District along Elm Street, while other areas have multiple large blocks open.
For an in depth look at Q4 and an overview of each submarket, please take a look at our New Hampshire 2019 Market Review & 2020 Outlook Report.