Q4 2022 Boston Industrial Market Report


TY JANNEY, Managing Principal

The greater Boston Industrial market held steady in the 4th quarter of 2022 at 4.2% overall vacancy and asking lease rates averaging $14.58/SF NNN. Headline leases were signed by 24M at 140,000 SF, Lasership, Inc. at 96,000 SF and Iron Mountain at 92,000 SF. Total annual absorption (for 355M SF in total inventory) was approximately 1.6M SF with minimal change in vacancy rate over the 12 month period. Sales volume, which reached $3.4B in 2022 in a market that has averaged $1.4B in industrial trades over the past 10 years, tells the real story. Industrial users seeking small and large blocks continue to compete for availability across all submarkets as the construction pipeline begins to stabilize.