Boston industrial escalation trends favor landlords
Boston Industrial Escalation Trends
- Over the past 24 months, industrial rent escalation rates in Boston have demonstrated a clear upward shift relative to 2020 benchmarks. In 2020, 95% of lease escalations were recorded at or below 3.5%. By contrast, 2024 data shows a significant reversal: 94% of new lease escalations are now at or above the 3.5% threshold.
- This upward trend has persisted into 2025, with the majority of escalations clustering in the 3.5%–4.0% range, based on year-to-date lease data.
- The sustained escalation reflects a broader market recalibration. Investors who acquired industrial assets around or before 2020 are now capitalizing on favorable market conditions to implement higher annual rent increases.
September 5, 2025
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