The latest commercial real estate figures have been published and Boston’s industrial market vacancy decreased to 10.6%. This marks a 0.3% decrease from a 10.9% vacancy rate in the third quarter. The vacancy rate for industrial properties has steadily from 11.1% in the first quarter of 2012.
Flex project also experienced a decrease in vacancy rate by 0.4% from 13.5 to 13.1. Likewise, warehouses experienced an overall decrease in vacancy rates during the fourth quarter. However, vacancy rates for subleased space in the Boston area increased by 2.8% to 2,203,834 square feet.
Net absorption in Q4 for the industrial market was a positive 1,452,880 square feet, which was the largest amount in 2012.
Rental rates for industrial space decreased by 0.2% in the fourth quarter from $6.10 to $6.09 per square foot. The rental rates for flex spaces increase from $8.90 to $8.96 while warehouse rates decreased marginally to $5.17 per square foot.
In quarter four 32,432 square feet were added to the industrial market. This is the lowest amount in 2012, down from 146,898 square feet in Q3, 167,881 square feet in Q2, and 170,258 square feet in Q1. At the end of Q4 there were 180,452 square feet of industrial space underway.
Source: CoStar Industrial Report