Your search results

For the First Time Ever, 495 South Industrial Market Hits Low Vacancy Rate of 2.5%

Posted by Anne on April 20, 2022
0

“For the first time ever, 495 South industrial market has hit 2.5% vacancy,” says John Eysenbach, Executive Vice President at R.W. Holmes. “This has caused a decrease in deals completed in Q1, not because of a slow-down in demand, but because there is physically nowhere for companies to go.”

Here are some other highlights from the report:

  • It’s no shock that the industrial market has been one of the darling asset classes throughout the pandemic. However, while finding space and acquisition opportunities was difficult in 2021, Q1 2022 numbers indicate more difficulties for tenants and owners for the remainder of 2022.
  • Users have resorted to looking outside Massachusetts to neighboring Connecticut, Rhode Island, and New Hampshire markets. In many cases, these subsidiary markets are seeing similar supply constraints, and pricing is now almost equivalent to Massachusetts.
  • While many sites are under permit or about to begin construction, there is little supply available for immediate occupancy within the next 6-12 months across all user sizes. Notably, users under 25,000 SF are being significantly impacted by the lack of supply, with very few of the industrial projects under construction tailoring to these smaller users.
  • The sales market has similarly been impacted. Sales volume is down almost 50% compared to activity in Q1 2021 across Greater Boston. The limited supply has caused sale prices to continue to rise, each quarter bringing a new high watermark. 495 South has hit $200/SF, Rt 128 North has exceeded $300/SF, and Rt 128 South has seen several deals over $250/SF.

“Throughout Greater Boston, tenants with upcoming renewals face a dramatic change in rental rates from what they currently pay in rent. In some cases, we see rates double,” said R.W. Holmes President Garry Holmes.  “The North 128 and Rt 3 market has seen significant rent growth, with deals now getting signed at or near $20 NNN for high bay warehouse product. In 2019, those rates averaged $10 NNN.”

About R.W. Holmes

Based in Wayland, MA, R.W. Holmes is consistently ranked as one of the largest commercial real estate brokerage firms in Massachusetts. Founded in 1976, R.W. Holmes assists companies—from startups to Fortune 500—and investors, owners, and developers with their local, national, and international real estate needs. R.W. Holmes specializes in property leasing, investment sales, tenant representation, consulting, and asset management. To learn more, visit www.rwholmes.com.

  • News Categories

  • Noteworthy Transactions

    • R.W. Holmes assists Mattress Firm with Massachusetts expansion in 142,000 SF lease in Franklin
    • Boston Dynamics and SnapDragon Chemistry take 75,000 SF of lab/R&D space in Waltham Research Park 214,356 square feet 100% leased
    • R.W. Holmes represents MathWorks in the $16.7M, 107,000 SF acquisition of Cochituate Place, Natick
    • RWH takes 55% leased 130,000 SF Class A Office building to 95% leased at 55 Old Bedford Rd in Lincoln for owner Real Capital Solutions, Denver
    • RW Holmes Fully leases a 67,000-square-foot new spec industrial building at 50 Ryan Drive, Raynham, before completion.
    • R.W. represents MathWorks in Los Angeles, Maryland, and Michigan expansions
    • More Transactions >>

Compare Listings