Q1 2026 Southern New Hampshire Commercial Real Estate Market Update
The Southern New Hampshire commercial market opened 2026 with a familiar split: industrial demand staying active while the office market continues to work through its post-pandemic reset.
Industrial
Warehouse and distribution space remained the strongest performer heading into Q1. Overall industrial vacancy ticked up modestly to 5.9%, with tenant demand concentrated on smaller units while large blocks of space sit vacant. The availability of larger blocks is largely a manufacturing story, the closure of the Anheuser-Busch craft brewery at Pease International Tradeport in Portsmouth and the separately announced 2026 closure of their much larger Budweiser facility in Merrimack have added significant square footage to the market, but both reflect company-specific operational decisions rather than broad weakness in the sector.
Office
The office market is still finding its footing. NH office vacancy stood at 13.8% heading into 2026, with tenants delaying decisions and some buildings converting to residential use. The story isn’t all negative, medical tenants and professional services users continue to lease, and Class B rates actually rose 6.8% as newer inventory commands stronger rents. Companies with lease expirations are largely choosing to renew or upgrade rather than downsize significantly.
Retail
Retail entered 2026 with stable momentum, consistent with a region that continues to attract residents and businesses relocating from Massachusetts. Southern NH’s proximity to Boston, combined with no state income tax, keeps consumer traffic and business demand solid across the Nashua, Salem, and Manchester corridors.
What This Means for Owners and Investors
Pricing discipline matters more than ever in Q1 2026. Industrial sellers and landlords with modern, flexible space are well-positioned. Office owners need a clear-eyed view of their tenant mix and lease rollover schedule. For investors, Southern NH continues to offer fundamentals that hold up well compared to overheated markets elsewhere in the Northeast.
If you own commercial property in Southern New Hampshire and want to understand what current conditions mean for your asset, I’m happy to provide a confidential broker opinion of value based on real market data.
Patrick Frazer Commercial Real Estate Advisor — Southern NH & Southern Maine GO Commercial Real Estate | Keller Williams Coastal and Lakes & Mountains Realty (603) 781-9069