Small-bay space represents only about 35% of the industrial inventory in Boston. But with larger spaces dominating development activity, the small-bay share is shrinking. Almost half of all new industrial space underway is in the 500,000-square feet and up segment, while just 5.3% of space underway falls in the small-bay segment.
Limited supply, paired with continued strong demand, has helped to drive time on the market for small-bay space listings to a record low at just 4.7 months. This compares to a 2013 peak of 14.6 months, and an average of 11 months from 2010 to 2018.
Several recent leases provide examples of just how quickly small-bay spaces are being leased in the Boston area. In July, City Electric Supply leased 9,600 square feet at Westwood Industrial Park. The space had been on the market for four months when it was leased by the electrical wholesale distributor.
And in May, the 14,000-square-foot property at 708C Washington St. in Pembroke was leased by AC Evolution, after just 2 months on the market. The Amazon product sourcing partner occupied the space in June at a triple net asking rent of $11 per square foot.