Boston industrial subtypes react differently to economic shifts

Boston’s overall industrial vacancy rate has been rising since Q3 2023, driven by both an influx of new supply and companies holding off on commitments due to uncertainty around global tariff changes.
Normally, this would put downward pressure on rents, but not all industrial property types are responding the same way. Manufacturing and Flex space rents remain at record highs, supported by strong demand from “tough-tech” users and steady interest in small to mid-size Flex spaces.
Meanwhile, Distribution and Warehouse properties are beginning to see rents decline after holding steady, reflecting a slowdown in the shipping and logistics boom fueled by the pandemic. These trends are likely to continue as companies reassess their space needs and adapt to evolving supply chain dynamics.

May 22, 2025

US-MA-BOS Boston