After a weak third quarter, New York Metropolis’s industrial market bounced again to finish 2022 on a excessive notice.
Tenants leased 1.5 million sq. toes within the fourth quarter, the Industrial Observer reported. The information got here from a CBRE report, which famous the quarter’s leasing exercise greater than doubled that of the third.
It was probably the most area leased for the reason that third quarter of 2020. CBRE researcher Brian Klimas thinks industrial leasing will stay robust this yr as a result of area is so tight within the metropolis.
“Till we’re totally at an equilibrium with the quantity of market area that meets the patron, I believe there’s nonetheless going to be numerous industrial leasing,” Klimas instructed the publication.
Availability out there rose marginally from the earlier quarter to six.8 p.c. The supply of Class A industrial area went in the other way, nevertheless, dropping from 7.5 p.c within the third quarter to six.3 p.c within the fourth.
Tenants pre-leased 67 p.c of the 5.6 million sq. toes of Class A and Class B area underneath building.
Among the many outer boroughs — Manhattan warehouse area is so restricted that it isn’t tracked — Brooklyn noticed probably the most leases signed within the fourth quarter: 49 spanning 645,000 industrial sq. toes, together with a 48,000-square-foot lease by ZeroSpace in Gowanus.
Queens ranked second with 28 offers for 460,000 sq. toes. They included the 2 largest contracts of the quarter: a 75,000-square-foot renewal by Customary Motor Merchandise in Lengthy Island Metropolis and DB Schenker pre-leasing 83,000 sq. toes in Springfield Gardens.
The Bronx had 4 offers and Staten Island had three. Asking rents throughout town surged 12 p.c year-over-year to $25.06 per sq. foot.
The commercial market boomed firstly of the pandemic as e-commerce turned a lifeline for shoppers. The rise in borrowing prices and uncertainty of the financial system, nevertheless, has threatened to tug the commercial market again from its peak.
— Holden Walter-Warner