2025 Mid-Year Boston Industrial Report

The Boston industrial market remains on firm footing throughout the first half of 2025, continuing its streak of out-performance over office and life science assets.

Vacancy appreciated nominally to 8.5%, most notably pronounced in the Route 128 and 495 West submarkets.

Sale volume, both in total transactions and nominal dollars increased approximately 20% and 7%, respectively, YoY from this same period in 2024. A trend that we have highlighted in previous reports continues throughout 2025, where owner-users continue to lead both in acquisitions and dispositions.

Relative to the past three years, construction activity is significantly lower for this product type, both in deliveries and starts. However, new developments remain relatively on par with their ten-year historical average, with several groundbreakings and deliveries this quarter. Affinius Capital & Bluewater Property Group have substantially completed their 120,000 SF speculative warehouse development at 21 Randolph Road in Randolph. Another trend observed throughout 2023 and 2024 is the emergence of small bay industrial centers. 12 Kidder Road in Chelmsford, a 25,000 SF contractor bay, is nearing completion, with occupancy set for May. Groundbreakings and new proposals continued: Marcus Partners, in concert with SDG Development & Construction, broke ground of their 125,000 SF high bay facility in Tyngsborough. RJK Kelly and Ridge Real Estate Partners began construction of their 95,700 SF speculative warehouse/distribution asset in Methuen. Site work is officially underway for VMD Companies’ 147,500 SF FreezPak cold storage facility in Fall River. In Haverhill, Leewood Realty has begun construction of a 58,500 SF build to suit manufacturing facility at 66 Newark Street, after securing a long term, full building lease. Finally, in Taunton, Marcus Partners announced their second office-to-industrial development in Myles Standish Park. They intend to construct a 40,000 SF flex building, accompanied by 3 acres of industrial outdoor storage (IOS).

Notable leasing activity was led by several significant renewals. Dover Saddlery, Inc. renewed their commitments at 525 Great Road in Littleton for 100,000 SF. NEPW Logistics, Inc. also re-committed for 82,000 SF at 66 Saratoga Boulevard in Devens. In Methuen, All Access Equipment – represented by Hunneman -  signed a long term commitment at 200 Danton Drive for 71,000 SF. In the Urban Industrial submarket, Pickle Robot—a long-time tenant at 425 Medford Street in Charlestown—signed a 57,000 SF renewal, representing a 300% expansion of their footprint. The deal highlights their commitment to the urban industrial market and their intent to stay centrally located as they continue developing physical AI technology for supply chain applications. Pickle Robot was also represented by Hunneman.

There were some notable space givebacks. Ascend Elements, a battery manufacturer that spun out of WPI, put their new, 101,000 SF HQ building at 39 Jackson Road in Devens up for sublease with more than ten years of term remaining. They had just committed to this space back in September of 2023. Hub Folding Box Co. put 97,000 SF of space on the sublet market in Bridgewater. Siemens AG, who has several locations in Hingham, also recently listed 40,000 SF of flex space at 125 Industrial Park Road in Hingham. UPS is also vacating one of their urban distribution hubs. 647B Summer Street is part of a 2023 proposal from Oxford Properties and Pappas Enterprises Inc. to redevelop the land into a 1.7 million SF mixed use master plan. While a timeline for the execution of said plan is unclear, the 63,000 SF distribution asset will be available for tenancy in early 2026. This follows on the heels of the approval Prologis received in late December for the construction of an 845,000 SF warehouse in Grafton, set to be occupied by the world’s largest courier company.

For more information please contact:

Mark Fallon, Director of Research & Strategy | mfallon@hunnemanre.com