BOSTON—If you’re a tenant who is leasing industrial, manufacturing, warehouse, or distribution space across the Northeast, it may be a good time to look at new options and opportunities, such as:
- Finding a new location with new amenities and extra power-source and ceiling heights.
- Redesigning your current space to make it more efficient and up to date with modern technologies and new codes.
- Buying your own building to meet your current and future growth needs, or
- Buying the building you’re currently leasing to drive growth and maximize your ROI.
With three decades of experience, Maugel DeStefano Architects specializes in designing industrial buildings and complexes. Our extensive expertise encompasses flex buildings, distribution centers, warehouses, manufacturing facilities, and mixed-use industrial parks.
If you need to discuss your needs, we can help. Our industrial facility design experts know how design choices impact growth, ROI, and future planning. Each project we take on begins with a thorough understanding of our client's vision and culminates in an industrial facility that surpasses expectations in the most strategic, advantageous, and functional manner possible.
Despite a slight increase in the industrial vacancy rate in recent quarters, the industrial market in Greater Boston is likely to remain tight because of growing demand.
According to the 2023 Second Quarter industrial report from the Boston office of commercial brokerage firm Colliers, despite industrial vacancy rising for the three consecutive quarters, it is still about four percentage points better than the historical average, and the increased availabilities are disproportionately concentrated in new distribution buildings.
Here are some other highlights from the report:
- More than 11 million square feet of industrial space, most of it pre-leased, remains under construction.
- An overwhelming majority of active tenants in the market are seeking blocks under 150,000 square feet.
- The number of large space requirements is less than it was several quarters back, which has challenged owners trying to fill new buildings.
- Rising vacancies and increased competition for tenants could dampen rent growth prospects in the distribution sector.
- Capitalizing on the Boston market’s well-educated workforce and access to capital, industries such as cleantech, robotics, batteries, 3D printing, and energy are gaining traction locally and affecting industrial market leasing.
Mike Kunz is a principal of Maugel DeStefano Architects and leads the firm's Industrial & Commercial Studio.