Industrial space in New York City’s outer boroughs has reclaimed the top spot as the most expensive industrial market in the country, overtaking the San Francisco Peninsula, according to a Cushman & Wakefield report. Overall industrial asking rents in the outer boroughs — which covers the Bronx, Brooklyn, Queens and Staten Island — rose slightly Commercial Observer Read More Channel, More, Research, Dimitri Mastrogiannis, New York City, Cushman & Wakefield, Turnbridge Equities
Industrial space in New York City’s outer boroughs has reclaimed the top spot as the most expensive industrial market in the country, overtaking the San Francisco Peninsula, according to a Cushman & Wakefield (CWK) report.
Overall industrial asking rents in the outer boroughs — which covers the Bronx, Brooklyn, Queens and Staten Island — rose slightly to $26.02 per square foot in the third quarter of 2023, enough to make it the most expensive of 83 industrial markets C&W tracks.
Even with the bump, asking rents in the outer boroughs have plateaued this year after rising steadily the past two years, according to the report, which covers 1,856 renter-occupied buildings larger than 20,000 square feet.
That’s in large part because the industrial construction pipeline has exploded across the country in the wake of the pandemic boom in the market, thanks to e-commerce’s massive appetite for industrial space, Mastrogiannis said. New buildings typically take nine to 12 months to lease up after they hit the market.
Turnbridge Equities’ 1.3 million-square-foot development at 980 East 149th Street in the Bronx neighborhood of Hunts Point will be among the city’s largest logistics centers. Other notable industrial projects under construction around the city include Innovo Property Group’s 680,000-square-foot development at 23-30 Borden Avenue in Long Island City, Queens, and LBA Logistics’ 385,510-square-foot project at 683 Court Street in Red Hook, Brooklyn.
In the largest deal of the third quarter, Net Zero Logistics took 70,200 square feet — an entire building — at 1970 Pitkin Avenue in East New York, Brooklyn. Kings County also netted the second largest lease of the quarter with Interstate Waste Services signing on for 48,000 square feet for the entire building and land at 1427 Ralph Avenue in Canarsie.
“There are a few negatives in the numbers, but brokers are still out there showing space, they’re getting deals across the finish line,” Mastrogiannis said. “Investors are still bullish on the market.”
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
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