Mansfield: Industrial Bright Spot
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|With good industrial properties scarce, UBS Realty Investments has agreed to pay $29M for the warehouse/distribution Center at 305 Forbes Blvd in Mansfield. (Perhaps we should consider leasing space in our toolshed.) Although ‘70s era, the building is fully leased for the next seven years, has modern specifications, is in an industrial park with lots of institutional ownership, and located on the critical crossroad of I-495 and I-95, says leasing broker CBRE-NE’s Steve Clancy. Not only does the sale reflect the 5.4% vacancy rate in this submarket, it also speaks to the solid fundamentals of the industrial market in the predominantly white collar, office-using Boston region, says Richards Barry Joyce’s SVP of research Brendan Carroll.|
|Yesterday, Brendan completed Q2 industrial market numbers that show good product in well-located submarkets like Mansfield performing much better than their 10-year average vacancy rate of 13.4%. There was positive absorption for the small-scale, specialized manufacturing properties that predominate in this region and for flex office/industrial buildings. For warehouse space, much of which is older, absorption was negative. But Brendan notes that vacancy and absorption rates are backward looking measures. The more forward focused assessment, the Institute of Supply Management forecast, shows a moderate increase in Boston industrial CRE activity in the coming months.|