Lowe's, HVAC Supplier Lease Up 380K SF Boston-Area Distribution Center
Distribution hubs continue to eat away at Greater Boston’s limited industrial supply with two new leases for a combined 381K SF in Wilmington.
Lowe’s has secured 179K SF and HVAC supplier Homans Associates signed for 202K SF at 613 Main St., in deals with a joint venture of The Seyon Group and Wheelock Street Capital, which owns the property. The leases bring the site to full capacity according to Newmark, which brokered the deal.
Seyon and Wheelock Street redeveloped 613 Main St. by demolishing 50K SF of the existing structure and added 21 loading docks in an effort to attract tenants, Newmark said in a statement.
“As industrial product continues to be repurposed in downtown Boston, areas such as Wilmington have become a logical location option for tenants, providing quick access to the city as well as the state’s major distribution network,” Newmark Executive Managing Director Tony Coskren said.
Lowe’s will use the site to supply retail stores across New England, while Homans’ space will serve its 18 Northeast locations, Newmark said. The deals come in a tight market with just 5.3% vacancy among the region’s approximately 98M SF of supply, according to Hunneman Q4 2020 research.
Last-mile demand has driven the market. Lowe’s continues to upgrade its supply chain to meet its e-commerce sales, which have more than doubled, Supply Chain Dive reported. Competitor Home Depot is also building a 775K SF warehouse in Tewksbury, north of Boston.
More recently, fitness bicycle maker Peloton signed a five-year, 75K SF lease with National Development at 61 Leona Drive in Middleborough as the fitness brand launches a $100M plan to speed up its delivery times, the company’s CEO said in a recent message to customers.
The companies all lag behind Amazon, which leased more than half of all new industrial construction in Greater Boston last year. The e-commerce’s 2M SF portfolio across the region continues to expand with seven pledged facility openings in 2021.