Boston Industrial Market Report

Large-scale distribution and biotech firms shine amid incoming supply injection. Although this year’s record-breaking construction pipeline appears daunting at first glance, a high proportion of built-to-suit space will mitigate the impact of this new supply. Roughly 6.6 million square feet slated for completion in 2024 is split between just two Amazon facilities. The remaining space represents just half of the average delivery schedule noted in the trailing five-year period entering this year. Although the life sciences segment is undergoing a cooldown, some firms in this sector are still seeking out leasing arrangements for manufacturing and R&D space. Multiple biopharmaceutical initiatives headline the list of large-scale move-ins, with both Intellia Therapeutics and Repligen each taking roughly 140,000 square feet off the market. The latter firm highlights the importance of this sector in Worcester County. While these move-ins will keep net absorption solidly positive this year, contraction in the biotech and logistics industries will help drive vacancy to a multi-year high in 2024.