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Greater Boston Industrial Construction Pipeline Falls by 80%
The industrial real estate market in Greater Boston, which saw significant growth during the pandemic, is now experiencing a slowdown, according to Newmark’s latest market report. The region had 1.2 million square feet in the industrial construction pipeline at the start of the year, 80% lower than one year earlier.
Vacancy rates have risen for six consecutive quarters, reaching 5.9% at the end of 2023, up from 3.2% at the end of 2022. Construction activity has also decreased, with only 1.2 million square feet of industrial space in the pipeline at the start of the year, compared to the previous year’s 80% higher figure.
The slowdown is attributed to a decrease in demand, particularly from e-commerce giant Amazon, which has slowed its growth and even closed several warehouses in Massachusetts. Despite these challenges, developers remain optimistic about the market, especially in sectors like manufacturing and life sciences, which continue to show strong demand.
- ◦Development
