According to CBRE's latest NYC Industrial MarketView Report, New York City's industrial real estate market continued its positive momentum in Q2 2021.
Leasing activity reached 585,000 sq. ft., while the overall availability for all classes dropped by 20 basis points (bps) quarter-over-quarter to 8.0%. The average asking rent remained stable at $22.56 per sq. ft., a 1.1% increase from Q1 2021.
"The strong demand for space in the NYC industrial sector continues to be a bright spot within the real estate market," said Nicole LaRusso, CBRE's Senior Director of Research & Analysis. "The quarterly decline in leasing activity reflects a lack of available Class A space to meet that demand. Thankfully a robust pipeline of new development projects is underway, and we expect strong leasing in the next few quarters as this product comes online."
The largest lease transactions during the quarter were Seko Worldwide's 50,500-sq.-ft. commitment at 14909 183rd St. in Queens, Urban Soccer's 25,700 sq. ft. lease at 1700 Atlantic Ave. in Brooklyn and LTS Management Company's 20,000 sq. ft. deal at 59-00 Decatur St. in Queens.
On the investment sales front, the NYC industrial market recorded 43 investment and owner/user sales totaling nearly 1.7 million sq. ft., a huge increase (218% higher) over the 530,000 sq. ft. recorded in Q1 2021. Total consideration for industrial sales reached over $700 million.
There are 13 under-construction properties totaling almost 3.8 million sq. ft. and an additional 19 properties that are planned or proposed totaling over 6.5 million sq. ft. Out of the 3.8 million sq. ft. under construction, 650,000 sq. ft. is TV/film studio space that will be owner-occupied, while over 2.6 million sq. ft. is Class A warehouse and distribution space.