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Boston Industrial Real Estate Summary (Q4 2018)

January 23, 2019
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Market Snapshot for Boston Industrial Real Estate

Boston is among the most competitive industrial real estate markets in the country. It is seen as a prime location with opportunities for both investors and tenants due to its positive market fundamentals and bourgeoning sectors, such as: biomedical, healthcare, education, technology, and finance.

In fact, National Real Estate Investor ranked Boston’s warehouse market 11th nationwide in a recently published list of “Warehouse Markets with the Most Rent Momentum.”

Demand for industrial real estate in the Greater Boston area remains high, especially for well-situated distribution spaces and high-end manufacturing spaces. Led by the expanding biopharmaceutical industry, tenants have absorbed a total of 8.9 million SF of industrial space over the last 6+ years (since 2012).

The overlying theme in Q4 2018 is how tight the industrial real estate market is north of Boston. This is specifically illustrated by the stats listed for the industrial real estate properties in the North Shore area.

“Over the past few years industrial real estate has become increasingly competitive, vacancy rates have steadily declined to a low single digits number in Metro Boston and the suburbs surrounding, thus driving prices upward with this lack of inventory. We’ve seen these factors create an opportunity for new construction & development, firms willing to develop property or scrape existing dated structures, that were previously considered prohibitive due to incurring higher construction costs.

There are several driving factors which have played a role in this scarcity, Greater Boston and the suburbs have one of the most dynamic & diverse collection of industries such as Healthcare, Tech, and Education. The rise of E-Commerce, the retail model and it’s relationship with consumer has changed tremendously over the last five years, creating opportunity for fulfillment centers as well, with their shipping & receiving demands.”  – Kevin Olson, Nordlund Associates Inc.

Boston MA Industrial Real Estate Q4 2018


  • Vacancy: 5.3% (Compared to 5.2% in Q3 2018, +0.1% change)
  • Absorption: +459,615 (Compared to +1,472,719 in Q3 2018)
  • Asking rate / SF: $7.87 (Compared to $7.81 in Q3 2018, +$0.06)


1) 333 Coney St – Siemens Expansion (Route 495 South Industrial Market)
RBA: 300,000
Preleased: 100%
Delivery Date: Q2 2021
Developer: Siemens Healthcare Diagnostics Inc

2) 100 Financial Park (Route 495 South Industrial Market)
RBA: 300,000
Preleased: 0%
Delivery Date: Q3 2019
Developer: Unknown

3) 237 E Main St – Building 5 (Attleboro / New Bedford)
RBA: 258,000
Preleased: 0%
Delivery Date: Q3 2019
Developer: Condyne LLC

4) 20 Commerce Way – Alnylam (Attleboro / New Bedford)
RBA: 200,000
Preleased: 100%
Delivery Date: Q4 2020
Developer: Gilbane Development Company

5) 237 E Main St – Building 7 (Attleboro / New Bedford)
RBA: 130,000
Preleased: 0%
Delivery Date: Q3 2019
Developer: Condyne LLC


1) 100 Pine Hill Dr – FedEx Distribution (Boylston, MA)
Price: $93,870,000
PSF: $259
RBA: 361,952
CAP Rate: 6.15%
Quarter: Q4 2018
Buyer: Realterm US Inc
Seller: Scannell Properties

2) 66 Saratoga Blvd (Devens, MA)
Price: $88,000,000
PSF: $108
RBA: 816,375
CAP Rate: 4.75%
Quarter: Q2 2018
Buyer: Morgan Stanley & Co LLC
Seller: CrossHarbor Capital Partners LLC

3) 100 Upland Drive (Norwood, MA)
Price: $87,250,000
PSF: $435
RBA: 200,430
CAP Rate: 7.3%
Quarter: Q2 2018
Buyer: Alexandria Real Estate Equities Inc
Seller: Campanelli

4) 43 Foundry Ave (Waltham, MA)
Price: $85,900,000
PSF: $194
RBA: 442,959
CAP Rate: N/A
Quarter: Q3 2018
Buyer: Hilco Real Estate
Seller: Rubenstein Partners L.P.

5) 154 Campanelli Dr (Middleboro, MA)
Price: $72,700,000
PSF: $96
RBA: 755,000
CAP Rate: 6%
Quarter: Q1 2018
Buyer: L&B Realty Advisors
Seller: Novaya Real Estate Ventures


1) 419 Maple St (I-95 Corridor South Ind)
SF: 489,950
Landlord: Unknown

2) 64 Jackson Rd (Ayer Ind)
SF: 355,000
Quiet Logistics
Landlord: Newmark Knight Frank

3) 305 Forbed Blvd (Attleboro / New Bedford Ind)
SF: 302,032
Rolf C Hagen (USA) Corp
Landlord: CBRE – New England

4) 66 Saratoga Blvd (Ayer Ind)
SF: 261,982
Gillette Eastern Distributors
Landlord: CBRE – New England

5) 55 Lyman St (The Boroughs Ind)
SF: 260,760
McKesson Corp
Landlord: CBRE – New England

Boston Industrial Real Estate Summary 2018

Market Snapshot for Industrial / Flex Space North of Boston

Nordlund Associates conducted a study of industrial and flex space properties within a 10 mile radius of North Shore Massachusetts to get a better idea of this specific zone in contrast to the whole Boston metropolitan area. Although rates are a bit higher around North Shore ($8.22/ SF vs $7.87/SF) on average, the vacancy rate is also lower by over 50%: 2.5% vs 5.3%, respectively.

The big takeaways are the availability rate at 4%, which is less than that of the 5-year average rate (5.5%), and the average months on market at nearly 1/3 of the 5-year average, 9.7 months compared to 14.7 months respectively.

These help illustrate how tight the industrial/ flex market is in the Massachusetts’ North Shore area and how quickly inventory is moving.

North Shore MA Industrial Real Estate Q4 2018

KEY STATS: Flex & Industrial Properties – North Shore, MA

  • Vacancy: 2.5% (Compared to 2.5% 5-Year Average)
  • 12 Month Absorption: +2,868 (Compared to 5-Year Average: +167,769)
  • Asking rate / SF: $8.22 (Compared to $6.43 5-Year Average)
  • Availability Rate: 4% (Compared to 5.5% 5-Year Average)
  • Average Months on Market: 9.5 (Compared to 14.7 5-Year Average)

*338 Properties Surveyed (10 mile radius)


1) System7 – 48 Dunham Road (Beverly, MA)
Description: System7 is the first tenant occupying the Class A asset completed in Q4 2018
SF: 145,000

2) The Hanover Company – 269-271 Mill Road (Chelmsford, MA)
Description: The Hanover Company acquired the industrial property for $35 million
SF: 268,000
Price/ SF: $132

3) Symes Associates – 99 Rosewood Drive (Danvers, MA)
Description: Symes Associates purchased the property in Danvers for $7.2 million
SF: 74,000
Price/ SF: $97

Data sources: Steel by CoStar, Perry Brokerage, Colliers, & Nordlund Associates