July 30, 2020
As other CRE asset classes struggled to navigate the second quarter due to the ongoing COVID-19 pandemic, the Greater Boston industrial market performed remarkably well, according to NKF’s Q2 2020 Boston Industrial Market report.
Rents in Boston’s industrial market increased across the board, as overall asking rents rose by 2.4% year-over-year, continuing a three-and-a-half-year period of consistent positive rent growth. The warehouse/distribution subtype saw the most significant growth in the quarter, with rents growing 3%. Additionally, year-over-year vacancies in the subtype declined 110 basis points.
Notable lease transactions during the second quarter included Amazon’s lease of 350,300 square feet at 800 John Quincy Adams Road, Sager Electrical Supply’s lease of 108,400 square feet at 19 Leona Drive and Sullivan & McLaughlin Communication’s 40,250-square-foot lease at 18 Campanelli Parkway.
“Across all fundamentals including leasing and investment sales activity, the market demonstrated very limited signs of dealing with setbacks from COVID-19,” the NKF report reads. “In fact, the industrial market may come out in a better position than it entered the new year, as the asset has positioned itself as a safe investment amid the pandemic.”
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