Report warns that 1.47 million square feet of new commercial space, especially flex space will be needed by 2035 to capture projected job growth and protect economic diversity.

A new real estate report commissioned by the Greater Newport Chamber of Commerce and conducted by Fourth Economy Consulting reveals a critical shortage of available commercial, flex, and light industrial space across Newport and Bristol Counties. The study projects that growing regional sectors—led by ocean technology, engineering, and professional services—will create nearly 1,700 high-paying jobs over the next decade, requiring 1.47 million square feet of additional commercial and flex space by 2035.

However, with commercial vacancy rates hovering at historic lows, including just 2.74% for industrial space and 5.98% for office space in Newport County, expanding local businesses face severe inventory constraints that threaten to push job growth outside the region.

“The Greater Newport region faces a critical juncture,” said Erin Donovan-Boyle, President and CEO of the Greater Newport Chamber of Commerce. “We will need to make a choice: support the strategic development of buildings and sites to accommodate this job growth or miss out on the opportunity to benefit from a diverse and growing economic base.”

Key Findings of the Report:

· Severe Market Tightness: Industrial availability sits at 2.74% in Newport County and 2.41% in Bristol County, well below healthy market benchmarks (6–7%). Office availability in Bristol County stands at a razor-thin 2.37%.
· High Demand in Growth Sectors: High-value sectors like Professional, Scientific, and Technical Services are projected to expand by over 1,500 jobs by 2035. Many of these firms require hybrid flex space that combines office capability with light assembly and prototyping.
· Zoning & Land Use Mismatch: Across Aquidneck Island, less than 50% of the 3,152 acres zoned for commercial and industrial use is currently utilized for those purposes. Furthermore, less than 2% of total zoned land is allocated for light industrial operations.
· Capacity Constraints at Local Hubs: Regional incubators and flexible workspaces like Innovate Newport play a vital role in nurturing early-stage companies. However, scaling companies quickly outgrow these spaces and struggle to find suitable step-up real estate nearby.

Strategic Recommendations for the Region:

To address these supply bottlenecks, the report outlines several actionable strategies for regional municipalities, developers, and stakeholders:
1. Prioritize Adaptive Reuse: Repurpose underutilized assets such as suburban office parks (e.g., Aquidneck Corporate Park) and retail corridors (Routes 114 and 138) into modern flex and light manufacturing facilities.
2. Modernize Zoning: Update local land-use regulations and dimensional standards to support modern flex space and light industrial uses.
3. Leverage Financing Tools: Utilize state and federal incentive tools, including Rebuild Rhode Island Tax Credits, Tax Stabilization Agreements (TSAs), and Opportunity Zone financing—to bridge gap costs for development.
4. Regional Collaboration: Explore multi-municipal financing partnerships and regional infrastructure assessments to make shovel-ready sites available.

“Our region’s economic vitality relies on our ability to foster innovation and retain our growing talent,” added Donovan-Boyle. “By aligning our municipal zoning, infrastructure investments, and redevelopment strategies today, we can ensure that Greater Newport remains a competitive place to build a career and grow a business.”

The complete Greater Newport and Aquidneck Island Real Estate Analysis is available to the public at www.newportchamber.com

About the Greater Newport Chamber of Commerce

The Greater Newport Chamber of Commerce is one of the state’s largest business advocacy organizations, whose mission is to connect, innovate, enhance, and advocate for the businesses of Greater Newport. As a trusted and reliable institution for over 100 years, the Greater Newport Chamber is a vibrant collective body of the greater Newport business community with nearly 1000 members representing over 50,000 employees. The Chamber works to create valuable strategic partnerships, promote strong economic growth, diversity, and prosperity to serve its members and the Greater Newport region.