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German industrial instrument manufacturer Krohne Inc. recently opened its North American headquarters in September at Cherry Hill Industrial Park in Beverly. Photo courtesy of Connolly Brothers
Asking rents for industrial space in Greater Boston rose 2.4 percent from the previous year as the sector demand for distribution and manufacturing space continues to far outpace availabilities.
The 1.2 million square feet of positive absorption year-to-date was the best two-quarter performance since 2013, according to a report issued Wednesday by Newmark Knight Frank. Life science companies are seeking manufacturing space in the suburbs to augment their research space in Cambridge and Boston suburbs, contributing to 1.4 million square feet of current requirements for manufacturing space.
“The industrial market may come out in a better position than it entered the new year, as the asset has positioned itself as a safe investment amid the pandemic,” the report states.
Another 8 million square feet of industrial space demand is in the market, far exceeding the 2.1 million square feet under construction and scheduled for completion by early 2021.Asking rents range from $14.21 per square foot in the Boston urban market to $9.50 to $7.60 in the south suburban market.
The south industrial submarket had the most activity including Amazon’s 350,000-square-foot lease at 800 John Quincy Adams Road in Taunton and Sager Electronics’ 108-square-foot renewal and Saer Electronics’ lease renewal in Middleborough.
