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Asking rents for Greater Boston industrial properties have risen nearly 15 percent in the past year amid strong demand from the retail and life science industries, with 2.5 million square feet of space leased in the second quarter.

The vacancy rate fell 0.9 percent to 2.5 percent, according to a CBRE research report. Demand will exceed supply for at least 18 months, based upon the projected development pipeline.

Well-capitalized institutional investors are targeting acquisitions in Greater Boston’s industrial market, with its high barriers to entry, and expect industrial rents to increase another 7 to 10 percent in 2022, CBRE said.

Wholesalers, retailers, third-party logistics companies and e-commerce giant Amazon continue to seek modern facilities for distribution and last-mile delivery stations.

TJX Cos. signed the largest lease of the quarter, taking 228,000 square feet at 175 Campanelli Drive in Braintree. Amazon leased 160,000 square feet at 1025 Elm St. in Bridgewater for a last-mile distribution center, and another 145,700 square feet on Prestige Way in Plymouth.

Bluewater Bay Development kicked off permitting last month for a 2.85 million-square-foot Amazon warehouse and distribution center at 53 Sturbridge Road in Charlton.

The Metro North submarket is the region’s tightest, with a vacancy rate of 2.4 percent at the end of the second quarter.

Demand Drives Double-Digit Growth in Industrial Rents

by Steve Adams time to read: 1 min