Boston Industrial Investment Forecast
User Demand Outpaces Record Construction;
Biotech Firms Find New Uses for Older Space
Life science companies and logistics providers expand footprints. As Boston recoups pandemic job losses swift recovery in well-compensated employment sectors has resulted in elevated consumer activity from much of the metro's population. Increased appetites for online goods has lifted leasing velocity highlighted by e-commerce giants bolstering their last-mile operations. Enhanced distribution needs have contributed to robust rent growth with marketed rates climbing nearly 32 percent from the onset of the pandemic to the end of 2022. Conversion activity is also having a significant impact on market conditions. Developers catering to Boston's thriving biotechnology sector are actively repositioning a sizable number of older industrial properties into lab and flex space. As these mid-20th century buildings are removed from inventory and a historic influx of warehouse and distribution facilities is finalized this year significant gains in marketed rents should be recorded in the near term.