Market Report | Industrial | January 2023
Quincy/Braintree Market Report Summary
Quincy/Braintree is a midsized submarket, containing around 9.9 million SF of industrial space. Like in the metro, logistics facilities account for the largest proportion of local supply, and these properties contain around 5.9 million SF.
The local inventory pool is rounded out by 2.1 million SF of specialized space and 1.9 million SF of flex space. The vacancy rate has hardly budged from this time last year. Net absorption was essentially flat over the past year.
Things look better over the five-year timeframe, as annual net absorption has averaged 22,000 SF in the submarket. Rents grew by 9.5% over the past 12 months, easily exceeding the 6.1% average annual change over the past decade. Industrial rents in Quincy/Braintree run for about $13.90/SF, which is more or less in line with the metro average.
A similar pattern holds for logistics rents, which at $12.80/SF, are right in line with the metro average for that subtype. There are no supply-side pressures on vacancy or rent in the near term, as nothing is underway. Moreover, the inventory has contracted over the past 10 years, as demolition activity has outpaced new construction. Quincy/Braintree saw 9 industrial sales over the past year, consistent with the typical amount of dealmaking in recent years.
Route 3 Market Report Summary
Route 3 South is a very large submarket, containing roughly 20.9 million SF of industrial space. Like in the metro, logistics facilities account for the largest proportion of local supply, and these properties contain around 12.7 million SF.
The local inventory pool is rounded out by 4.6 million SF of specialized space and 3.5 million SF of flex space. Vacancy, at 5.7%, has ticked up slightly over the past 12 months. Annual net absorption came in at -140,000 SF over the past year.
The story improves over a longer timeframe: Over the past five years, annual net absorption has averaged about 210,000 SF in the submarket. Rents grew by 9.6% over the past 12 months, easily exceeding the 6.4% average annual change over the past decade. Industrial rents in Route 3 South run for about $11.90/SF, which is below the metro average.
The submarket’s most prominent industrial subtype commands a discount, as well, albeit somewhat less pronounced. Logistics space here runs for about $11.80/SF, a bit below the $13.10/SF rate in the metro. The 610,000 SF currently underway in Route 3 South accounts for 2.9% of inventory.
This is a continuation of new development in the submarket, which had already seen 850,000 SF deliver over the past three years, representing a cumulative inventory expansion of 4.2%. Industrial properties traded with regularity last year, consistent with the generally high level of activity over the past three years.
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