Home > Press Releases > Greater Boston Industrial Market Posts Strongest Quarter In Years, According To RBJ’s indSTATus report

Greater Boston Industrial Market Posts Strongest Quarter In Years, According To RBJ’s indSTATus report

“indSTATus – Spring 2013” Report Shows Highest Level Of Absorption In Ten Years

BOSTON – May 22, 2013 – Demand for Greater Boston’s industrial properties hit a ten-year high, according to a new research publication from Richards Barry Joyce & Partners.

The findings come from indSTATus – Spring 2013, the firm’s quarterly report highlighting warehouse, flex and manufacturing property types.  Tenants absorbed 1.1 million square feet of industrial space during the year’s first quarter, driven particularly by demand for warehouse product.  During the last eight quarters, more than 3.1 million square feet of industrial space has been taken off the market by tenants.

“This positive quarter for industrial properties did not occur in the vacuum, given that nationally we saw a rise in U.S. goods consumption,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners.  “Locally, we’ve now submitted our third consecutive quarter with all three industrial property types posting positive absorption.”

Brendan Carroll, Sr. Vice President

Brendan Carroll, Sr. Vice President

Following are highlights from Q4 for each of the industrial property types.

The Warehouse market closed the quarter at 17.8 percent (down from 19.3 percent in Q4 2012), on positive absorption of 933,000 square feet.  Asking lease rates were down $0.08 to $5.26.  The absorption total bests the quarterly record of 736,000 square feet absorbed in the fourth quarter of 2006.  By comparison, the average quarterly absorption during the past ten years is 67,000 square feet.

In the Flex market, vacancy was 18.3 percent, flat from the quarter before, on 108,000 square feet of positive absorption.  Asking lease rates dropped by five cents to $8.01.  Premium flex properties along Route 128 are dramatically outperforming the rest of the market, with vacancy in those properties dropping from 21.3 percent to 11.8 percent in the last five quarters.

Vacancy dropped to 16.0 percent, from 16.8 percent, in the Manufacturing market, on 35,000 square feet of positive absorption.  Asking lease rates edged up by two cents to $6.29.  Over the past six quarters, tenants have expanded their footprint by 470,000 square feet of space, with vacancy dropping 2.5 percentage points during that period.  Also notable is the fact that manufacturing inventory offers tenants only one 50,000 square foot choice that is less than 20 years old.

To request a copy of indSTATus – Spring 2013, please send an email to research@rbjrealestate.com.

RBJ&P Research Publications
indSTATus is one of RBJ&P’s family of ten quarterly research reports.  The firm also publishes a quarterly office report (officeSTATus) and individual marketSTATus reports on nine critical sub-markets.  The firm’s biotechnology-focused report, bioSTATus, is released twice a year, after the first and third quarters.  In total, RBJ&P produces an industry-leading 42 reports per year, in addition to custom research projects for clients.

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services.  For more information, please visit our website at www.rbjrealestate.com. Follow us on Twitter at @RBJ_Partners.

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