586 Manley St. Photo courtesy of National Development

Rising industrial availabilities throughout Greater Boston reflect slowing economic conditions as tenants’ sublease listings hit the highest level since 2011.

Industrial tenants are offering 3.3 million square feet for sublease, while the vacancy rate hit 8.8 percent in the first quarter, brokerage Newmark reported. Vacancies have increased for 11 consecutive quarters and now exceed the long-term average of 8.1 percent.

“Downsize risks persist as growing recession concerns and uncertainty within the macroeconomic environment characterized Greater Boston late in the first quarter of 2025,” Newmark researchers wrote in the market report.

The market had 650,000 square feet of negative absorption.

Leasing activity declined 15.2 percent on a year-over-year basis to 1.1 million square feet. Transaction activity was dominated by renewals and extensions, as companies put off decisions on major expansions.

But a decline in speculative development is likely to head off a space glut, as the construction pipeline has slowed to 1.6 million square feet, its lowest level since 2019. One major project, National Development’s 210,600 square-foot distribution center at 586 Manley St. in West Bridgewater, was completed in recent months.

The quarter’s largest transaction was Fidelity Information Services’ 111,584 square-foot renewal at 10 Dan Road in Canton.

Vacancies are highest in the south suburban market, rising 4.9 percent since 2020 and now topping 10 percent. Sublease listings are highest in the north submarket, which has nearly 1.5 million square feet available.

After a small decline in the previous quarter, average asking rents rose to $16.64 per square foot.

“In the near term, industrial users will likely remain focused on cost-reduction measures including renewing in place and subleasing space,” the report predicts.