The Boston industrial market posted negative absorption this quarter for the first time since the second quarter of 2014, after Necco’s home in Revere and American Superconductor’s Devens facility came to market. Combined, the two properties added nearly 1.2 million SF of vacancy. Outside of that however, market demand was up. Several user-owned buildings could be coming to the market in the quarters ahead, particularly in the South market, which could cause some additional vacancy. In all, the market posted 583,000 SF of negative absorption in Q2. Meanwhile, rents continue to rise at midyear. The recent addition of high-rent property at 135 American Legion Highway in Revere (Necco facility) has caused rent volatility in Q2. This has caused a rent spike, which is influencing aggregate statistics. That said, flex rents in key suburban locales such as 128 Mass Pike and 128 Northwest are contributing, but rents are on the rise across the board.
2018 Q2 Industrial Viewpoint Report Boston Colliers
Author: Aaron Jodka, Director of Research | Boston
Date Published: 07/26/2018