Changing Tides Along Route 495

The first quarter of 2023 saw significant shifts in the commercial real estate landscape along the Route 495 corridor. Most notably, demand in the industrial market has tapered off, with rents beginning to plateau after the record-breaking increases of recent years. Although supply remains minimal in the near term, occupiers are eager to see if new construction delivering in the next two years will bring some relief on rent and lease terms. This dynamic will be especially interesting – and potentially telling for the region as a whole – amid lingering economic uncertainty.

In addition to industrial shifts, the 495 market makeup has evolved to include life sciences. In late 2021 and early 2022, a handful of developers bet big on an Andover life sciences cluster, but those buildings have yet to secure significant commitments. Market analysts will be keeping a close eye on this area to determine whether life sciences conversion efforts are still paying off in spades. For more data-driven insights and analysis, check out Cresa’s Route 495 Q1 Market Update.