After a strong final quarter of 2018, the Greater Boston Industrial market finished Q1 2019 with 324,000 sq. ft. of negative absorption. The majority of this contraction is due to several large givebacks. Both availability and vacancy rates increased in Q1 to 9.4% and 6.2%,
respectively. Despite the increase in vacancy, average asking rents in the Greater Boston Industrial market increased to $9.94 per sq. ft. triple net (NNN). This is largely driven by rents in the Urban and the Inner Suburban markets. High-bay product continued to be the most attractive asset for tenants as the vacancy rate decreased to 7.1%, and average asking rents increased across all markets. Despite only one new industrial building delivering in Q1 2019, the construction pipeline remains robust, with 2.9 million sq. ft. of new product currently underway.