During a time when nearly every other sector of the Massachusetts real estate market has taken a hit in recent months due to the lagging economy, the industrial real estate market continues tracking along and has remained somewhat stable. This has played out in virtually every submarket, including the South Shore.

This relative stability is typical of the industrial market because there is always a need for industrial space, regardless of the state of the economy. Although the amount of warehouse space a company needs may fluctuate, that need always exists. Office space, on the other hand, fluctuates greatly depending on the current state of the economy, as any owner of commercial office space can tell you.

On the South Shore, although the industrial real estate market is experiencing a 10 percent to 15 percent decline in lease rates, deals are still being made and the industrial real estate market is looking up.

Smaller deals, those in the 20,000-square-foot to 75,000-square-foot range, are helping to increase the South Shore’s industrial market activity. This is indicative of a more optimistic outlook that many companies have concerning the economy.

Del Monte, for example, recently leased 48,160 square feet of warehouse space at 105 Shawmut Road in Canton. The South Shore’s availability of warehouse space and easy access to highways played a large part in the decision making process.

During a rough patch in the economy, a smaller company tends to delay real estate decisions. This is precisely what happened a few months ago. Now, that there are signs of economic recovery, smaller companies are feeling more confident and secure about leasing commercial space. These companies are no longer holding off on making leasing decisions.

This doesn’t mean larger deals aren’t being made. Larger deals on the South Shore are still driving the sector in the area and there have been many notable handshakes recently.

New England Pottery recently closed a deal for more than $8 million for a build-to-suit in the Myles Standish Industrial Park in Taunton. In one of the largest lease transactions in Greater Boston during 2001, United Liquors leased 484,000 square feet of warehouse space at 175 Campanelli Drive in Braintree.

Although there remains a high rate of vacancies on the South Shore, the percentage is lower than that of other real estate sectors in the area. Currently, a prospective tenant can choose from a large amount of space when searching to lease for industrial purposes on the South Shore.

Adding to the abundance of available industrial space is the fact that many companies are holding onto industrial real estate property, instead of selling it, in the interest of appreciation and this trend is being seen on the South Shore. Even though there are companies that don’t want to sell, it seems that these same companies are quite willing to lease their space. This desire to lease adds to the ample industrial space available on the South Shore.

On the sale side of the industrial sector, deals are being inked and the South Shore has seen some notable activity in this area. The $2.4 million sale of 136 Will Drive, a 58,698-square-foot warehouse and research and development facility in Canton, is just one recent sale transaction.

The industrial real estate market on the South Shore is not your average Massachusetts market like those of Greater Boston and the North Shore. The South Shore region, depending on how it’s defined, simply encompasses more area than other Massachusetts regions. Also, other regions cannot offer the quantity and variety of industrial space as there is in the South Shore. On the North Shore, previously existing available industrial space has, for the most part, been converted to office space or biotechnology space in response to the tech boom of the recent past. This has resulted in the area’s limited amount of industrial space in that region, space that gets gobbled up quickly when it comes on the market.

The future should see a gradual but steady increase of industrial space leasing activity during the spring and throughout the fall on the South Shore thanks largely to strong inventory and also to the improved perception of the economy. Many are hopeful that by early next year, those in the industry will be in a more comfortable position.