Slow MetroWest industrial, warehouse growth, but more appears on the way
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FedEx's Natick logistics center
Total occupied warehouse space contracted across MetroWest in the second quarter, while industrial space stayed flat, according to Perry Brokerage Associates of Boston.
Warehouse space contracted more in the Boroughs — Marlborough, Northborough, Southborough and Westborough — in the second quarter than any other sub-regional market in greater Boston, Perry reported. Across greater Boston, 475,000 square feet of occupied space was added.
No new occupancy was reported for Framingham and Natick, Perry said.
Industrial space has also not seen high demand in the area.
The Boroughs have lost 82,000 square feet of occupied industrial space in the past 12 months, gaining just 5,000 square feet in the second quarter, according to Perry, which bases its reports on the Bureau of Labor Statistics, Institute for Supply Management and other sources.
Framingham and Natick have gained no additional occupied industrial space in the last 12 months, according to Perry.
But vacancy rates remain very low for warehouse space in MetroWest, with rates of 2.5% in Framingham and Natick, and 1.3% in the Boroughs.
Perry also sees growing demand in MetroWest and other areas in Central Massachusetts based on recent property sales and new construction.
A FedEx warehouse in Natick sold in March for just under $52 million, for example, and a Milford Amazon distribution facility sold in June for $33.6 million.
In Franklin, a 300,000-square-foot warehouse facility is being built at 100 Financial Park without tenants lined up, Perry said, in a sign of expected demand. PharmaCann is building a 58,000-square-foot cultivation facility in Holliston, and Spencer Technologies has built a new 120,000-square-foot space in Medway.
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