Friday, April 13, 2012, 11:07am
Greater Boston’s industrial property market saw 520,000 square feet of positive net absorption in the first quarter, an “upbeat note,” according to a Grubb Ellis market report.
Buildings constructed since 2002 accounted for 615,000 square feet of positive absorption, while older buildings registered 95,000 square feet of negative absorption.
The quarter was the seventh in the last eight to see positive absorption in the industrial market.
Vacancy dropped 20 basis points to 13.3 percent, its lowest level in three years, led by general industrial products, which was 11.5 percent vacant for the quarter.
Industrial rents were $7.13 per square foot, triple net, dragged down by certain high-vacancy markets, including Lawrence, which registered a vacancy rate of almost 20 percent.
Warehouse/distribution space was 14.1 percent vacant and saw 256,000 square feet of positive absorption, about half of which was in the southern region.
Positive absorption in the RD and flex space market was 138,000 square feet.
Grubb Ellis said though Boston’s industrial leasing market modestly improved in the first quarter, the region’s investment sales activity was off pace from levels seen in previous quarters. The $42.6 million in investment sales volume during the quarter represents only 13 percent of Boston’s total 2011 volume.