NYC industrial market tightened in first quarter: TRD Insights

Vacancy rate ticked down to 5.1 percent

TRD New York TRD INSIGHTS /
Apr.April 23, 2020 08:30 AM
(Credit: iStock)

(Credit: iStock)

While the coronavirus has devastated much of New York City’s economy, its industrial market in the first quarter was a bit stronger than in the final quarter of 2019.

The industrial vacancy rate fell to 5.1 percent from its Q4 2019 level of 5.3 percent, according to a CBRE report. Industrial availability, which includes occupied space being offered for lease, remained at 8.5 percent, about the same as in Q4 2019. New leases, expansions and renewals totaled 2.86 million square feet, with the heaviest concentration in Queens.

Rents and sales were also similar to or stronger than their Q4 2019 levels. Average asking rent jumped 10.6 percent over last quarter while the average asking sale price stayed around $379.61 per square foot. Overall sales totaled about 1.7 million square feet — a nearly 72 percent increase from the fourth quarter — and $405 million.

Construction remained strong in Q1 2020. Eight properties totaling nearly 2.8 million square feet were under construction and two projects totaling more than 1 million square feet broke ground. This trend showed signs of reversing toward the end of the quarter, however, as the pandemic began to grip the city.

Industrial construction in New York City was halted at the end of the quarter when Gov. Andrew Cuomo announced and extended a ban on all non-essential construction, including on industrial projects.


Related Articles

arrow_forward_ios
An aerial view of a pop-up drive-in theater built in the parking lot at the Broadway Commons in Hicksville, New York (Getty)

Covid pummeled shopping centers, but their parking lots are thriving

Covid pummeled shopping centers, but their parking lots are thriving
The number of mortgage borrowers in Covid-19 forbearance plans ticked down again this week. (iStock)

3M homeowners remain in forbearance

3M homeowners remain in forbearance
Mayor Bill de Blasio and the Lucerne Hotel at  201 West 79th Street (Getty; iStock; Google Maps)

Lawsuit blasts NYC’s “capricious” Covid-19 homeless response

Lawsuit blasts NYC’s “capricious” Covid-19 homeless response
Gap CEO Sonia Syngal (Getty)

Gap Inc. will close 350 stores and exit malls entirely

Gap Inc. will close 350 stores and exit malls entirely
(iStock)

Dead weight: A breakdown of NYC’s rental listing glut

Dead weight: A breakdown of NYC’s rental listing glut
(Getty, iStock)

Cash-strapped borrowers are increasingly giving keys back to lenders

Cash-strapped borrowers are increasingly giving keys back to lenders
237 Park Avenue and Scott Rechler (Photos via Getty; RXR)

What tenants are paying at RXR and Walton Street Capital’s 237 Park Avenue

What tenants are paying at RXR and Walton Street Capital’s 237 Park Avenue
The National Multifamily Housing Council’s monthly payment tracker found that 90.6 percent of those households paid some rent by Oct. 20. (iStock)

Rent collections in market-rate apartments stagnate in October

Rent collections in market-rate apartments stagnate in October
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...