Nolan Ryan, vice president at NAI GKJ, was quoted several times in the August 14, 2021 T&G article titled Industrial Real Estate Market Soaring in Worcester. “E-commerce is the biggest trend,” he said citing that Amazon is moving to Worcester. “The trend started long before the pandemic, but the pandemic has exacerbated it,” Nolan stated. He also noted that businesses continue to demand industrial space in the Worcester area to avoid supply-chain disruptions going forward.
“In addition, cannabis businesses are proliferating and they’re scooping up buildings,” Nolan said. This takes away available inventory for companies that need more room to store and distribute their products. “They’re eating into what would have been available inventory.”
According to Nolan, the base rate for industrial rent prior to the pandemic was generally $6 to $6.50 per sf. Today it has jumped to between $7 and $8.50 per sf. That can be a significant expense for companies needing large amounts of industrial space.
As for solving the space shortage, Nolan said that a long-term strategy is to build more industrial properties. A more immediate plan could be repurposing existing buildings.
