Market Report | Industrial | August 2023

Quincy/Braintree Industrial

Vacancy in the Quincy/Braintree industrial submarket is 4.0% and has decreased 0.9% over the past 12 months. Meanwhile, the rate of increase in the broader Boston market was 0.8%. During this period, 86,000 SF has been absorbed, and nothing has delivered. Total availability, which includes sublease space, is 7.1% of all inventory. Within this submarket, logistics space is by far the largest subtype with 5.9 million SF in this category, followed by 2.1 million SF of specialized space and 1.9 million SF of flex space. Rents are around $14.50/SF, which is a 7.3% increase from where they were a year ago. In the past three years, rents have increased a cumulative 28.4%. This submarket is slightly more affordable than Boston as a whole, where average rents are $15.10/SF. There is nothing under construction, and the submarket is 27,000 SF smaller than it was three years ago. There have been 6 sales over the past year, for a total of $7.5 million. Over the past three years, there have been 27 sales, which have traded for approximately $147 million. The market cap rate for Quincy/Braintree is 6.3%, slightly above its trailing three-year average of 6.1%.

Route 3 Industrial

Vacancy in the Route 3 South industrial submarket is 4.6% and has increased by 0.6% over the past 12 months. Meanwhile, the rate of increase in the broader Boston market was 0.8%. During this period, 400,000 SF has delivered, and 250,000 SF has been absorbed. Total availability, which includes sublease space, is 11.0% of all inventory. Within this submarket, logistics space is by far the largest subtype with 13.3 million SF in this category, followed by 4.6 million SF of specialized space and 3.6 million SF of flex space. Rents are around $12.50/SF, which is a 7.7% increase from where they were a year ago. In the past three years, rents have increased a cumulative 29.6%. This is also an affordable submarket, relative to Boston as a whole, where average rents are $15.10/SF. About 570,000 SF is under construction, representing a 2.6% expansion of inventory. Moreover, total inventory has expanded by 940,000 SF in the past three years. There have been 34 sales over the past year. Sales have averaged $113/SF, and the estimated value for the market as a whole is $138/SF. The most frequent of these transactions have been those of logistics space, with 21 sales. This tracks with the overall mix in the submarket, as the subtype is the largest in Route 3 South. Over the past three years, there have been 124 sales, which have traded for approximately $511 million. The market cap rate for Route 3 South is 7.0%, slightly above its trailing three-year average of 6.8%.