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JLL tells Westborough EDC: office vacancy high, industrial and flex demand steadier
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Summary
JLL presented data showing Westborough holds about 3 million sq ft of office in a 11 million‑sq‑ft 495/Mass Pike West market, with office vacancy near 25–30% while industrial vacancy is around 2%; presenters said conversions to flex and faster permitting could attract tenants.
Allison Powers of JLL told the Town of Westborough Economic Development Committee that the town accounts for roughly 27% of the 495/Mass Pike West office market and that office vacancy remains elevated while the industrial market is much healthier.
Powers said the broader market contains about 11,000,000 square feet of office and that Westborough represents roughly 3,000,000 square feet. She told the committee office vacancy in the market is commonly around 25–30% and gross office rents have generally hovered around $20 per square foot, peaking near $22. Powers pointed to large sublease blocks — including a 90,000‑square‑foot Park Place Technologies sublease — and the acquisition of 4400 Computer Drive by Amazon (about 400,000 square feet) as factors that change available office inventory.
The JLL presenter said Westborough’s industrial sector looks stronger: local industrial vacancy is about 2 percent, compared with roughly 4.8 percent across the larger 495 market, and triple‑net industrial rents have shown growth since the pandemic. She described “flex” buildings — hybrid office/industrial space used for R&D, makerspace and light manufacturing — as a likely conversion target for older class B and C office stock.
Powers also described the ownership and tenant landscape in Westborough, naming Carruth Capital as the largest local landlord (with substantial holdings at Westborough Office Park), and listing major occupiers such as eClinicalWorks, Cumberland Farms, Eversource, Astellas and Olympus. She identified several large land parcels — including 25 Research Drive (the former BJ’s site, about 60 acres, sold to Samuels) and EMC Cosland Drive land — as options for industrial or large users if demand materializes.
During questions, committee members asked how Westborough should compete with nearby Marlborough, which has used tools such as tax increment financing in the past. Powers recommended practical steps the committee and town staff can take to attract tenants: prioritize permitting speed and inspection coordination, make buildings more marketable through targeted landlord investment, and conduct proactive outreach to specific prospective tenants (for example, making direct calls to firms like Tetra Tech).
The presentation concluded with a warning that macroeconomic uncertainty — including tariffs and other factors — was slowing large tenant decisions, and a closing note that adaptive reuse to flex or industrial uses could help absorb surplus office supply.
The committee thanked JLL and received the presentation materials.
