The Real Deal New York

Queens industrial property values jump 60% — in one year

Manufacturing rents climb as development frenzy shrinks supply: JLL
By Rich Bockmann | December 12, 2014 03:05PM

Owners of industrial sites in Queens have seen their property values rise a staggering 60 percent over the past year as developers increasingly warm up to the borough, according to a new JLL report. And as the supply of industrial properties continues to shrink, rents are seeing marked increases.

Epitomized by the likes of the Durst Organization snapping up a site in Hallets Point for $130 million and speculators looking to gentrify gritty parts of Long Island City, industrial property values have risen 60 percent year-over-year, according to JLL.

And now many of those industrial properties – concentrated near John F. Kennedy International Airport and neighborhoods such as Long Island City, Astoria, Maspeth, Flushing and Jamaica –  are seeing rising rents.

“The shrinking supply of inventory in Queens, combined with a thriving logistics sector, has industrial rents set to grow steadily into 2015,” Reid Berch, senior vice president of JLL’s industrial services group, states in the report.

Rents in Queens warehouse and distribution properties climbed a modest 1.3 percent to $13.31 between the second and third quarters of the year, according to JLL.

Manufacturing properties saw rents jump 6.3 percent during the same time period to $13.02, JLL found.

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  • It was only a matter of time before developers started warming up to Queens. The borough has the space and need for high density mixed use development. Queens Borough President Melinda Katz sponsored a conference last month to discuss a development blue print for Jamaica, Queens where a few hundred people attended but earlier this year , she shoots down the plan for the 1,700-unit Astoria Cove complex, citing it did not have enough affordable housing units, citing fears of over-gentrification and rising rents. We need more Mike Bloombergs in the outer boroughs and local districts who understand private investment must have a profitable return while serving the needs of the neighborhoods.