BOSTON, Jan. 16, 2014 /PRNewswire/ -- The industrial real estate market in Greater Boston continued its positive momentum through the final quarter of 2013, according to "indSTATus – Winter 2014," a research publication from Transwestern | RBJ that highlights warehouse, flex and manufacturing properties.
The industrial market capped 2013 with a four-quarter absorption total of 4 million square feet, the region's highest amount since 2000. The overall market is riding an 11-quarter positive absorption streak, during which occupancy increased 6.1 million square feet.
"When you are comparing positive market conditions to those not seen in more than a decade, then it's clear that the market is doing well," said Brendan Carroll, senior vice president, Transwestern | RBJ. "For the past 18 months, we've only seen one quarter of negative demand, in the manufacturing sector. Given that we are looking at three property types, that's a remarkably telling statistic."
Warehouse Market – The quarter closed with a vacancy of 14.2 percent, down from 15.6 percent the previous quarter, and positive absorption of 793,000 square feet. Asking lease rates are $5.45, up $0.08 from the previous quarter. Warehouse vacancy fell from 19.8 percent to 14.2 percent since the second quarter of 2012, marking the lowest level in 11 years. Tenants have driven positive demand for six consecutive quarters, during which 3.4 million square feet has been absorbed.
Flex Market – The quarter closed with a vacancy of 16.9 percent, down from 17.6 percent the preceding quarter, and positive absorption of 182,000 square feet. Asking lease rates of $8.29 are up from the previous quarter's $8.21. Tenants have driven positive absorption for eight consecutive quarters, during which occupancy has grown 843,000 square feet.
Manufacturing Market – The quarter closed with a vacancy of 12.8 percent, a slight increase from last quarter's 12.5 percent, with 41,000 square feet of negative absorption. Despite the increase in vacancy, asking lease rates of $6.55 are up from $6.40 the previous quarter. The negative demand broke what had been an eight-quarter streak of positive absorption.
To request a copy of "indSTATus – Winter 2014," please send an email to Brendan Carroll at firstname.lastname@example.org.
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, development, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. Transwestern facilitates better decision-making for clients by combining penetrating local market intelligence and macro-market research through its affiliate, Delta Associates. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit www.transwestern.net and follow us on Twitter: @Transwestern.
SOURCE Transwestern | RBJ