Vacancies fell once again. Net absorption has been on a tear of late, 11.5 million SF since the start of 2015. Vacancies ended the first quarter at 11.2%, marking a new low point for this economic expansion. High tech manufacturing remains a key driver of the market. A solar manufacturer from overseas is touring the market (and other locations in the states) looking for up to one million SF of space. Metro Boston’s highly educated workforce is encouraging this type of manufacturing to grow, while many parts of the country continue to bleed manufacturing operations. Rents have risen 22% since 2010 and 8% in the last year alone, ending the quarter at a new high-water mark. Landlords with competitive properties remain in the driver’s seat. Improved fundamentals and scarcity of quality product are even fueling growth in second-tier assets.

 

2017 Q1 Industrial Viewpoint Report Boston Colliers

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