Industrial and Warehouse Surge Continues; Still In Demand Across the Baystate
April 18, 2018 - By Perry Research
BOSTON–Sustained strong fundamental demand, a severe lack of quality available choices, an increasing preference for centrally-located facilities and multiple competing uses for current and potential product continue to suggest long-term optimism for Greater Boston industrial and warehouse facilities, according to Perry Brokerage’s Encompass Steel Report. Nullifying the effects of one-time, singular events, overall demand remains robust, and investment activity accelerated as many buyers interpret the current supply/demand imbalance as a precursor to selective rental increase bursts. As a delivery of 200,000 sf in Taunton and a further construction pipeline of 528,000 sf is set to complement the region’s state-of-the-art warehouse inventory, older, outmoded facilities better suited for other uses are likely to not be redeveloped as warehouses; a trend expected to perpetuate long-term space shortages. Unlike warehouse, speculative develop of pure industrial facilities is unlikely, as a one million sf construction pipeline is fully pre-leased.
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