Boston Industrial Sublease Availabilities at 10-Year High 

Vacancies in the Boston metro industrial market are rising but remain below historical averages, according to Colliers’ Q1 Boston Industrial Report. Sublease availabilities are at a 10-year high, indicating some softening in the market. The construction pipeline is shrinking, with more completions than groundbreakings. Investor interest in acquiring new assets has increased in the first quarter. 

Despite a 3.4 million square foot net absorption rate in the quarter, new listings in warehouse and flex segments would have caused negative net absorption if not for a 3.8 million SF Amazon build-to-suit delivery in North Andover. Six of the 10 submarkets experienced demand losses, with vacancies declining only in Worcester. 

Large space requirements have decreased, leading to heavy concentrations of vacancies in new high-bay product. The overall vacancy rate in the high-bay segment is 13.6%, with buildings delivered since 2023 having a 43% vacancy rate. The metro has nearly 20 million SF of available space, over half of which is in warehouse or high-bay assets. Landlords are unable to aggressively push rents, with overall industrial asking rents increasing by about 4% year-over-year, significantly lower than previous years.