Industrial Property Deals Rise In MetroWest
It hasn't exactly been a stellar couple of years for industrial property landlords up and down Interstate 495.
But several notable leases and property transactions this year have brought some improvement, allowing the MetroWest region to enjoy some of the upward trend the greater Boston market has been experiencing for five straight quarters among its manufacturing properties.
“We anticipate a continuation of this stretch of positive quarters for the [overall] industrial market,” said Brendan Carroll, senior vice president of research at Richards Barry Joyce & Partners.
Mixed Performance
In MetroWest, manufacturing space seems to have been the most active lately, seeing gradual improvement over the past year, according to RBJ&P.
Manufacturing properties have seen a positive absorption — a measure of supply and demand over time — of 291,000 square feet since last summer, when 20.9 percent of manufacturing lease space was vacant in MetroWest. That has fallen to 18.1 percent this summer, while asking rents are up 6 cents to $6.13 per square foot.
But the largest piece of the industrial market — warehouse space — seems to be struggling.
With a total of 32 million square feet of leasable space, the warehouse segment saw its vacancy rate climb from 18.4 percent last summer to 19.8 percent this summer, RBJ&P said, equal to the greater Boston average. Absorption over the year is negative 75,000 square feet.
Flex Space And Notable Deals
Meanwhile, “flex” space — a combination of office and manufacturing space — in MetroWest saw its vacancy rate fall a tenth of a point to 15.8 percent. Over the past year, flex space has absorbed 291,000 square feet in leases. The greater Boston market's flex vacancy rate is at 17.3 percent.
April was a good month for industrial real estate activity. Notable transactions included Hudson-based Calare Properties' purchase of the former Evergreen Solar plant in Devens; paper manufacturer Lindenmeyr Munroe's lease of 79,000 square feet in Bellingham; and Barrett Distribution's 45,000-square-foot expansion in Southborough. And in January, Genzyme purchased 10 California Ave. in Framingham for $8.1 million.n
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