Disruption 2020: Q2 Industrial Update

by | 21 July 2020

Greater Boston’s industrial market has seen sustained strong performance. Tenants are actively looking in all areas of the market, as are developers to match. Here are the major talking points from second quarter stats.  

  • Industrial product saw a net positive absorption of 262,000 SF, this sent vacancy down to 8.6%, a 15-year low. 
  • Aggregate rents have again climbed to the double digits as demand and development push rent to the $10 mark across the market. 
  • Development has picked up from 2019 with over two million SF of industrial space delivered this year with the potential to double by year end. 
  • Amazon is once again the big player accounting for three of the largest leases of the quarter for a combined 864,000 SF of space leased. 
  • E-commerce and logistics continue to be drivers in the tenant market, making up the majority of large leases and requirements. GMP demand from the life-science industry and construction suppliers round out the market for a diverse and robust active requirement base.