July 14, 2020
New York City’s industrial market continued to perform well during the second quarter despite the economic shutdown brought on by the COVID-19 pandemic, according to CBRE’s New York City Industrial MarketView. The report shows positive absorption of more than 575,000 square feet lowered the availability rate to 8% and vacancies to 4.8%.
Leasing velocity, including new leases, expansions and renewals, totaled nearly 1.3 million square feet in Q2. Although the sector experienced a 54.9% decrease quarter-over-quarter, Q2 leasing velocity was on par with the six-quarter running average.
“The demand for warehouse and distribution space by e-commerce companies drove the sector’s leasing activity in the second quarter,” said Nicole LaRusso, director of research and analysis for CBRE’s Tri-State Region. “With consumer spending habits drastically shifting towards online shopping, e-commerce companies’ needs for warehouse and logistics space will continue to position the city’s industrial properties as a safe investment for building owners.”
Pictured: Prologis Bronx.
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