Boston Industrial Market Report

Alleviating supply pressure key to supporting industrial market growth. The metro has faced elevated completions each year for the past five years, with 30 million square feet delivered during that span. This extended period, driven largely by speculative projects, pushed vacancy up 320 basis points over the past two years. In response, developers have slowed project starts, leading to a sharp year-over-year drop in supply growth. Still, net absorption is expected to remain modest in 2025, with space reductions by Amazon and other major e-commerce tenants playing a role. Some submarkets, however, appear better positioned. The Andover-Amesbury area posted the fastest inventory growth among metro submarkets over the past year, yet recorded one of the smallest vacancy increases — a sign of steady local demand. Likewise, Southern New Hampshire had the metro’s lowest vacancy rate in early 2025, reflecting continued interest along the far northern Interstate 95 corridor.