INDUSTRIAL MARKET OVERVIEW

TY JANNEY, Managing Principal

For the first time since 2009, the Greater Boston quarterly industrial vacancy rate increased from 3.9% to 4.3%. Rising inflation and interest rates coupled with a pause in early-stage life science demand are contributing factors to this change. 5.5 million SF of absorption and 7.5 million SF of new construction also represent 10-year highs, although the delivery of 3.8 million SF at Osgood Landing in North Andover this quarter contributed to the surge in positive absorption. One transaction representative of an emerging trend for GMP bio-manufacturing was the sale of 93,280 SF to Jumbo Capital for $211/SF as Jumbo plans to reposition the facility from distribution to GMP for bio-manufacturing.