Kathy DeMello
From Mill Towns to Modern Hubs
Historically, New Hampshire’s industrial identity was rooted in textile mills and small-scale manufacturing. Cities like Manchester, Nashua, and Dover thrived on proximity to rivers and rail. But over the past two decades, the state has pivoted toward advanced manufacturing, clean tech, and logistics — fueled by its business-friendly climate, access to major highways, and lower operating costs compared to Massachusetts.
Today, the I-93 and Route 3 corridors form the backbone of this evolution. These highways connect southern New Hampshire to Boston, making towns like Salem, Londonderry, and Merrimack prime targets for industrial development. The proximity to Manchester-Boston Regional Airport further enhances the appeal for logistics operators and e-commerce players.
Tight Supply, Targeted Growth
As of Q2 2025, industrial vacancy statewide sits at 5.2%, with southern New Hampshire facing acute shortages in sub-20,000 SF spaces. While average asking rents declined 6.3% year-over-year to $11.26 NNN, they remain 43% higher than five years ago — a sign of recalibration rather than retreat.
Developers are responding with smaller contractor bay projects and flex industrial builds, often proceeding without full pre-leasing. This reflects confidence in sustained demand, especially from regional distributors, clean tech firms, and light manufacturers.
Infrastructure & Policy Tailwinds
Several infrastructure upgrades are reinforcing New Hampshire’s logistics positioning:
-
I-93 Expansion: Ongoing improvements are reducing congestion and improving freight flow.
-
Airport Enhancements: Manchester-Boston Regional Airport is expanding cargo capabilities, attracting third-party logistics firms.
-
Zoning Flexibility: Municipalities like Londonderry and Hooksett are streamlining approvals for industrial and mixed-use developments.
State-level incentives, including tax abatements and workforce training grants, are also drawing interest from out-of-state investors and tenants.
Regional Integration & Supply Chain Realignment
The pandemic-era supply chain disruptions prompted many firms to rethink their distribution strategies. New Hampshire’s location — within a day’s drive of 70 million consumers — makes it an ideal node for regional fulfillment. Companies are increasingly favoring smaller, decentralized hubs over mega-warehouses, and New Hampshire fits that model.
Moreover, the state’s industrial market is benefiting from spillover demand from Massachusetts, where land constraints and higher costs are pushing tenants northward.
Outlook: Strategic, Sustainable, Scalable
Looking ahead, New Hampshire’s industrial evolution will hinge on three pillars:
1. Strategic Site Selection: Developers and tenants will prioritize access to highways, labor pools, and utility infrastructure.
2. Sustainable Design: Green building standards and energy-efficient layouts will become standard, especially for logistics facilities.
3. Scalable Growth: Flexibility in design and zoning will allow properties to adapt to changing tenant needs — from warehousing to light manufacturing to R&D.
New Hampshire may not boast the industrial scale of its southern neighbors, but its agility, location, and policy environment make it a rising star in New England’s logistics map. For investors and developers seeking strategic growth, the Granite State offers more than just granite — it offers grit, growth, and geographic advantage.
And best of all – New Hampshire did not disappoint, yet again, in the spectacular autumn weather and color!! What a great State!