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RBJ: Greater Boston Industrial Property Market Posts Strong Third Quarter

October 30, 2013 Leave a comment Go to comments

Findings Released in Richards Barry Joyce & Partners’ “indSTATus – Fall 2013” Report

BOSTON – October 30, 2013 – Greater Boston’s industrial property market enjoyed a very strong third quarter, possibly outshining even the region’s office market, according to “indSTATus – Fall 2013”, a new report from Richards Barry Joyce & Partners.

The report highlights the three industrial property types: warehouse, flex, and manufacturing.  Each property type is in the midst of a multi-quarter positive absorption streak.  The four-quarter absorption rate for the overall industrial market is at 3.3 million square feet – the highest level since 2000.

Brendan Carroll, Sr. Vice President

Brendan Carroll, Sr. Vice President

“For obvious reasons, the office properties tend to get the greater share of attention, and that’s particularly understandable given the higher visibility of office buildings and the current strength of that market,” said Brendan Carroll, senior vice president of research for Richards Barry Joyce & Partners.  “But this may be one quarter when the industrial market should have the greater focus. We are seeing positive gains not seen in a decade.”

Following are highlights from Q3 for each of the industrial property types.

Warehouse Market – The quarter closed with vacancy of 15.6 percent, a five year low and down from 17.1 percent in the preceding quarter. Asking lease rates are $5.37 (up $0.16 from $5.21 last quarter). The market’s streak of positive absorption extended to five quarters, with a Q3 tally of 874,000 square feet.

Flex Market – The quarter closed with vacancy of 17.6 percent (down from 18.0 percent the preceding quarter), on positive absorption of 125,000 square feet. Asking lease rates of $8.21 are up from last quarter’s $8.08. Flex tenants have driven positive absorption for nine of the past ten quarters, increasing occupancy by 990,000 square feet during that time.

Manufacturing Market – The quarter closed with vacancy of 12.5 percent, a significant drop from 15.6 percent last quarter, on 465,000 square feet of positive absorption. Asking lease rates increased to $6.40, from last quarter’s $6.32. Vacancy in the manufacturing market has plummeted to 12.5 percent from 18.5 percent in Q3 2011. Greater Boston’s manufacturing occupancy base has increased seven percent over the last eight quarters, during which time tenants have absorbed more than one million square feet.

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

RBJ&P Research Publications
indSTATus is one of RBJ&P’s family of eleven 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 46 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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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on November 1, 2013.

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