Rising costs for land, construction materials and labor continue to drive upward pressure on industrial lease rates in the greater Boston market in the second quarter. Pre-leasing activity was announced at Centech Park North in Shrewsbury, MA (310,000 SF under construction) with SGPS Showrig, an entertainment equipment supplier, signing for 49,524 SF, demonstrating continued strong occupier demand. However, quarterly vacancy rates held steady at 3.9%, representing a change in the declining vacancy trend. Recent increases in interest rates are also expected to significantly impact sales activity and pricing heading into Q3 of 2022.
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