B
OSTON— Greater Boston’s industrial market stayed solid in Q3 2025, with 3.02 million sq ft leased, 60 % of which were renewals. Tenants favor stability, avoiding relocation costs, and early renewals are rising amid market volatility. Net absorption was negative, 507,414 sq ft for the quarter and 280,779 sq ft YTD, as large spaces returned from expiring COVID‑era leases. Availability climbed 20 bps to 9.8 %, while vacancy fell 10 bps to 7.6 % thanks to limited new construction and leasing of big vacant blocks.

    Average asking rent held at $15.20 / sq ft NNN, down $0.06 qoq. With speculative development slowing and a tight pipeline, rents are expected to stay flat into 2026. Demand from 3PLs and mark‑to‑market renewals could lift rates over the next 12–18 months.

    CBRE sees the market stable through 2025 if larger‑user demand materializes, though interest rates, trade shifts, and tech like AI and robotics will continue to influence dynamics. Boston’s industrial sector navigates headwinds with cautious optimism, as occupiers seek flexibility and landlords adapt to evolving preferences.