Early 2023 Insights into New Hampshire’s Commercial Property Scene 

Active Market with Varied Movements 

The commercial real estate market in New Hampshire has been active in early 2023. The industrial sector saw both investment and owner-user sales, while the office sector experienced diverse movements such as consolidations, expansions, and downsizing​​.

Stable Industrial Vacancy Rates

The industrial vacancy rate remained fairly unchanged year-over-year, ending the fourth quarter at 2.7%. With little room for further tightening, this rate is expected to stay relatively flat throughout the year​​.

Notable Commercial Transactions

There have been several significant sales in the commercial sector, including the sale of a 94,000 SF warehouse/distribution building in Newfields and a 60,000 SF flex building in Milford. These sales reflect continued investor interest in New Hampshire’s commercial properties​​​​.

Office Sector Trends

The office vacancy rate declined slightly in 2022, with Class B spaces absorbing the most square footage. However, forecasts indicate a potential increase in the vacancy rate due to companies relocating or expanding​​​​.

Large Office Sales and Leases

Early 2023 saw significant office sales, like the 403,818 SF mill office building in Manchester. There were also notable leases, such as Sanborn Head’s lease of 22,860 SF in Bedford and Q, LLC’s lease of 19,980 SF in Dover​​​​.

Impact of Downsizing and Remote Work Trends

Companies like Liberty Mutual and Timberland announced plans to downsize their office spaces, reflecting the impact of the hybrid and work-from-home models on commercial real estate​​​​.