The outlook for the industrial real estate market in R.I. in 2026 is positive - by Julie Freshman and George Paskalis

Rhode Island enters 2026 with a relatively “tight” industrial real estate market, but the reasons differ than those during the peak pandemic years when the increase in e-commerce leasing and purchases was the main factor. In 2026, the factors affecting the industrial sector are a combination of scarcity of land and buildings, tenants being more selective due to cost and efficiency reasons, and a lending environment that continues to impact which projects get funded and built and when. For existing building owners, the scarcity is positive in that it will keep prices stable. We expect that the supply of industrial buildings and spaces in the Rhode Island market will remain low with vacancy rates hovering around 4%. Despite low vacancy rates, the demand remains highest for modern, single-story industrial buildings with decent clear heights and good loading features in close proximity to major highways, while older inventory that lacks these features will be harder to lease and less liquid than the more modern equivalent.

Recent sale transactions include a 23,868 s/f industrial building located on Niantic Ave. in Providence’s Huntington Industrial Park that sold for $2 million, and a 161,000 s/f multi-tenant, fully leased industrial building on Dupont Dr. in the same industrial park that sold for $7.585 million, both in November 2025. The 169,000 s/f former Providence Journal building that sits on 10.99 acres on Kinsley Ave. in Providence sold via an auction process in December 2025 to an investor who intends to make the building available for tenancy. There are several industrial properties currently under contract including an 11,000 s/f building on Park East Dr. in Woonsocket in the Highland Corporate Park, and a 41,500 s/f trucking terminal situated on 9.78 acres in the Cumberland Industrial Park closing soon.

On the leasing side, 43,800 s/f of industrial space at a multi-tenant industrial building in Lincoln was leased to an existing tenant for expansion purposes. A 144,000 s/f industrial building was recently leased to a Massachusetts company also for expansion purposes. Notable spaces available for lease include 322,281 s/f of distribution space at 1159-1193 Broad St. in Central Falls and 29,100 s/f of Class A fully air conditioned, clean production and warehouse space (including office) available for lease at 195 Dupont Dr. in Providence.

In Rhode Island’s Quonset Business Park construction began in 2025 on various projects to support or expand manufacturing for several companies. A new 255,000 s/f facility for REGENT Craft will produce electric seagliders. REGENT Craft just announced in January of this year that they received a major order of 30 of the 12-passenger Viceroy Seaglider vessels from ‘XXV’, a private members club that offers innovative experiences revolving around premier coastal destinations. The Viceroy vessel is reportedly designed for convenient, comfortable dock-to-dock travel.

Also in Quonset, Anduril Industries’ new 150,000 s/f facility will support the production of two of their autonomous underwater vehicle (AUV) models, and a 200,000 s/f expansion project for Edesia Nutrition will enable the company to double it’s capacity to manufacture a nutrition supplement created to fight global famine.

The Quonset Development Corp. also manages the State’s “Rhode Island Ready” Program which will continue to support development in many communities. The program is creating an inventory of pre-permitted properties ready for industrial development. Reportedly, $16.35 million has been invested through the program to upgrade and prepare 21 approved industrial sites for future development.  Programs like RI Ready won’t instantly create massive new inventory, but the hope is that they will meaningfully improve the “speed” of development.

Regarding new industrial developments outside of Quonset, one notable project is the Comstock Industrial Center, located immediately off of I-295 in western Cranston, which is a fully approved, two building, industrial center in RI’s Western Cranston Industrial Park. Being developed in two phases, Phase I will conclude with the delivery of a 70,000 s/f high-bay warehouse building, with Phase II commencing as a 200,000 s/f build-to-suit high bay warehouse building. Ownership of the Comstock Industrial Center is open to a sale or a build-to-suit lease. The lease rates for these types of build-to-suit leasing opportunities will be determined based on tenant needs.

Industrial lease rates in Rhode Island are now in the $6.00-$7.00 per s/f range, NNN for bulk warehouse space, in the $7.00-8.50 per s/f range for general purpose industrial space, and in the $10.00-$12.00 per s/f range for flex space. Sale prices for 20,000 s/f to 50,000 s/f buildings have continued to range from $65 to as high as $100 per s/f or more depending on quality and location.

The outlook for the industrial real estate market in Rhode Island in 2026 is positive. It is expected that tight vacancy and stable pricing will persist for modern functional space, while older product may need more strategic positioning and pricing to finalize deals.

Julie Freshman, SIOR, is vice president of MG Commercial Real Estate and George Paskalis, SIOR, is partner MG Commercial Real Estate, Providence, R.I.