Boston industrial market insights

Q3 2025

40%

Lease count share of renewals in Q3 2025

Renewals made up 40% of flex/industrial leasing in Q3 2025, the highest share in six years. This upward trend, ongoing since Q3 2024, reflects growing tenant caution amid economic uncertainty, with many opting to stay in place rather than take on new space.
82 mos.

Average term of leases signed in Q3 2025

Despite muted leasing activity in Q3, average lease terms increased sharply, reaching their highest level since Q2 2019. The trend suggests tenants are committing to the Boston market with a focus on long-term stability and operational continuity.
42%

Increase in 4% escalations from 2020 to 2025

Flex and industrial lease escalations have increased notably in 2025 compared to the 2020 baseline. Leases featuring 4% annual escalations surged from just 1% in 2020 to 43% year-to-date in 2025. Meanwhile, leases with 3% escalations accounted for 57% of lease agreements, 3% increase from 2020, highlighting a clear upward trend in escalation rates across the sector.

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