Prices are trending upward for industrial sites, too

Report shows PPSF growth in all five boroughs

TRD New York /
Feb.February 12, 2018 07:00 AM

Source: Ackman-Ziff Real Estate

UPDATED, 11:37 a.m., Feb. 13: Industrial real estate prices are trending upwards across New York City, according to a new data analysis from Ackman-Ziff Real Estate.

Boosted by the e-commerce sector’s demand for distribution centers, between 2013 and 2017 the average price per foot rose 81 percent in the Bronx, 76 percent in Manhattan, 76 percent in Brooklyn, 59 percent in Staten Island and 30 percent in Queens.

Although many major industrial sites have traded to developers looking for land on which to build office and residential towers (think the Navy Yard and Hudson Yards), industrial purpose-minded deals are taking place as well. The Ackman-Ziff report points to recent distribution center sales as examples, including Westbrook Partners and Innovo Property Group’s acquisition of 24-02 49th Avenue in Queens for $195 million and ASB Real Estate Investments and 60 Guilders’ pick-up of 5112 Second Avenue in the Bronx for $47 million.

ASB, 60 Guilders team up for $47M Sunset Park buy

“We think that a lot of investors that we’re talking to right now are thinking about industrial uses whereas in the past they hadn’t,” said Ackman-Ziff’s Jason Meister. Innovo, for example, acquired a movie theatre in the Bronx last year for $75 million, and is reportedly considering the development of 740,000 square feet of industrial space at the site.

Nationally, industrial sales volume by dollar amount has doubled since 2012 and industrial spaces vacancies have fallen at roughly the same rate, according to data from PwC and the Urban Land Institute.

However, while pricing has trended upwards in New York, the city saw less industrial space trade in 2017 than in years’ past, data analyzed by Ackman-Ziff’s Tripp Lyons shows. In fact, every borough saw a drop in total industrial square footage sold last year, which leaves an open question of whether 2018 will bring a correction in pricing, especially in Brooklyn, where sales prices have risen most consistently, having jumped up year-over-year during every year since 2013.


Related Articles

arrow_forward_ios

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

Blackstone buys Colony Capital’s warehouse portfolio for $6B

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Clutter CEO and co-founder Ari Mir, and clockwise from left: 280 Fullerton Avenue, 1 Holland Avenue, 3046 Northern Boulevard and 5601 Foster Avenue (Credit: Linkedin, Google Maps)

Self-storage startup Clutter makes its first real estate play with $152M deal

arrow_forward_ios