New York, NY – Cushman & Wakefield today released its third quarter industrial statistics for the New York outer boroughs, showing that despite an overall slowdown in deal volume in 2023, the New York outer boroughs’ industrial market remained healthy and in high demand.
“The New York outer boroughs’ industrial sector had a strong year. We saw a substantial increase in direct average asking rents and several Class A new construction deliveries, which is a positive sign for the market, as it shows the continued growth and demand for quality industrial space in New York City,” said Dimitri Mastrogiannis, Senior Research Analyst at Cushman & Wakefield.
Direct average asking rents rose substantially by $2.11 per square foot (psf) over the fourth quarter, reaching a record high of $28.20 psf. The overall vacancy rate rose slightly to 4.8% due to increases in availabilities in the Bronx, Brooklyn and Queens. These increases can be attributed to several vacant Class A new construction buildings being delivered in the fourth quarter, including a significant multi-story warehouse in the Bronx, pushing up overall asking rents and vacancy rates.
Despite an overall slowdown in deal volume in 2023, fourth quarter leasing activity grew by 17.6% quarter-over-quarter, indicating sustained demand for industrial buildings and outdoor storage/low coverage sites. The development pipeline in the outer boroughs continued to expand, with nearly 900,000 square feet of warehouse space delivered in 2023.
“The recent increase in supply has outweighed demand, resulting in a negative year-to-date net absorption. However, with the strong leasing activity in the fourth quarter, it is expected that this trend will reverse in 2024,” added Mastrogiannis.
New York Outer Boroughs’ Industrial Market Experienced Record High Asking Rents During Fourth Quarter
Jayden Lapin-Tatman • 2/14/2024
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.