Our JLL Research team has just released the U.S. Q2 Industrial Outlook, and we are pleased to report following a very positive first quarter for the warehouse/distribution market, it was the manufacturing sector which showed the most growth in the second quarter of 2015. Posting an overall positive absorption of 617,209 square feet, this was mainly driven by large leases and sales taking place in the North and South submarkets. This brought the overall vacancy for manufacturing to 10.0 percent, down a full percentage point from last quarter, and the lowest since 2001. In the South we saw 122,000 square feet leased by Universal Millennium in Norwood, an expansion in the market. In the North, SMC Manufacturing took approximately 200,000 square feet at 18 Independence Dr.
Any glimpse of slowdown does seem to be in the future either. Demand is expected to increase as square footage of build-to-suit projects out numbers speculative projects by almost three to one. Build-to-suit projects include 280,000 square feet for Victory Packaging in Bellingham, 450,000 square feet for Potpourri at the Littleton Distribution Center, as well as 680,000 square feet for Martignetti at the Myles Standish Park. Spec projects expected to break ground in 2015 include 200,000 square feet at 20 Commerce Way in Norton, 100,000 square feet at 60 Commerce Way as well as 200,00 square feet at 150 Charles Colton Rd.
For more information on the Greater Boston industrial market, please do not hesitate to contact me. And for more information about the broader U.S. Industrial outlook, please feel free to download the report.