Boston Industrial Market Report
Supply Wave Impact Belied by Built-To-Suit Assets;
Biotech Cooldown Hits Industrial Sector
Weighty development pipeline less daunting than at first glance. This year’s anticipated construction total is robust, surpassing the previous 1999 record by more than 27 percent. Still, a high proportion of built-to-suit projects coming online indicates that the impact of additions in 2023 will be less dramatic than observed during previous supply waves. Multiple Amazon logistics centers are scheduled for completion in Worcester County and Boston’s immediate northern suburbs, amounting to roughly 3.8 million square feet of distribution space. While the e-commerce giant has been pulling back on the national level, an active local consumer base has kept the retailer engaged here. Moving forward, a higher-income population bodes well for demand for last-mile delivery space, mitigating the impact of some of the speculative projects reaching the market.