After a one-quarter hiccup, the Boston industrial market resumed its recovery. Vacancies fell 0.2 percentage points during the quarter, to 9.9%. Absorption totaled 300,000 SF, led by the Urban market. The need to be close to the population centers in and around Boston continues to drive activity in that submarket. Meanwhile, rents continue to rise. Within the Urban market, multiple buildings are now topping $20/SF triple-net asking rent, while rents in the South average into the mid-$6s/SF triple-net. Spec construction is starting to gain some traction. With vacancies as low as they are and tenants seeking modern product, which is lacking across the market, these developments are well positioned to capture the next wave of industrial users.

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