NYC industrial market tightened in first quarter: TRD Insights

Vacancy rate ticked down to 5.1 percent

New York 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
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
R&B Realty's Aron Rosenberg and Maverick's David Aviram of Maverick with 28 West 36th Street and 32 West 39th Street (Google Maps)
Midtown landlord sues to stop foreclosure by Maverick
Midtown landlord sues to stop foreclosure by Maverick
A rendering of the facility at 1029 Newark Avenue in Elizabeth, Fidelco chairman Marc Berson and Elberon Development Group chairman Ann Evans Estabrook (Photos via JLL, Fidelco and Elberon)
Cold storage facility in New Jersey gets $34M loan
Cold storage facility in New Jersey gets $34M loan
HSBC COO John Hinshaw (Getty, iStock)
HSBC to shrink its office footprint amid shift to WFH
HSBC to shrink its office footprint amid shift to WFH
(iStock)
US hotel market had worst year since the Great Depression
US hotel market had worst year since the Great Depression
New Yorkers can enjoy going to the movies again on March 5. (iStock)
Showtime: NYC movie theaters to reopen
Showtime: NYC movie theaters to reopen
Fisher Brothers partner Kenneth Fisher and 605 Third Avenue (Photos via Getty, Fisher Brothers/Illustration by Kevin Rebong for The Real Deal)
What tenants pay Fisher Brothers & JPMorgan at 605 Third Avenue
What tenants pay Fisher Brothers & JPMorgan at 605 Third Avenue
arrow_forward_ios

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

Loading...