Lincoln Property Co. broke ground in late 2022 on a speculative 176,800-square-foot warehouse at 404 Green St. in Wrentham, in its fifth Greater Boston joint venture with private equity firm Stockbridge/Image courtesy of Lincoln Property Co.

Vacancies rose to 7.2 percent in Greater Boston’s industrial market as leasing failed to keep pace with a strong development pipeline.

Developers have added 5 million square feet of new industrial space over the past 12 months, and another 14 million square feet is under construction, brokerage Colliers reported this week.

The busy construction pipeline points to additional increases in vacancies in the 188 million-square-foot market, according to the first-quarter market report.

Macroeconomic headwinds will depress demand in the short term, Colliers said, as venture capital investment in Massachusetts companies dropped to its lowest level since 2019.

“This drop and rising interest rates, a lack of IPO’s, reduced stock market valuations and banking sector turmoil are all weighing on decision-making for companies across the metro,” Colliers researchers Jeff Myers and Kelly Doonan wrote.

Demand from e-commerce companies for distribution space will drive future absorption, including a 1-million-square-foot requirement by Uline Boxes, the report states.

In the quarter’s largest transaction, Acushnet Co. leased 555,000 square feet at 175 Kenneth Welch Drive in Lakeville, while Christmas Tree Shops executed an 816,084-square-foot sale-leaseback at 64 Leona Drive in Middleborough. The property was acquired by Lincoln Property Co. for $105 million, or $129 per square foot.