The Boston industrial market has seen vacancies rise to 7.2% over the past six months, which is still well below the historical average. This increase in vacancy rates is primarily due to new products completing construction and entering demand rather than companies giving back space. The increased inventory is mainly driven by new high-bay products.
Colliers’ Q1 2023 Industrial Report further points out that millions of square feet of uncommitted underway products are expected to be delivered soon, putting upward pressure on vacancies and limiting rent growth. Despite this, e-commerce sector continues providing a solid foundation for future industrial absorption with US online sales reaching a record-high of $262 billion last year – representing 15% of all retail sales nationwide .
Personal consumption expenditures have stayed resilient despite economic headwinds while Massachusetts retail sales growth remains firmly in positive territory exceeding the national benchmark last year .
