New York City’s industrial real estate market posted over 2.2 million sq. ft. of leasing activity doing Q3 2020 thanks in part to major commitments by e-commerce companies, according to CBRE’s Q3 2020 NYC Industrial MarketView. As a result, the availability rate held constant at 8.0% quarter-over-quarter, while the average asking rent remained virtually unchanged at $22.98 per sq. ft.
Leasing activity quarter-over-quarter increased by 70.9%, with more than 1.6 million sq. ft. comprised of pre-leased space in planned or under-construction Class A warehouse and distribution space. Staten Island experienced the most leasing during the quarter driven by a prominent e-commerce tenant committing to 975,000 sq. ft. of space in the fourth and final building in the Matrix Global Logistics Park in the MidIsland submarket. Brooklyn was a close second with more than 790,000 sq. ft. comprised of two large pre-leases in the Red Hook submarket. Queens saw leasing activity of more than 340,000 sq. ft. for the quarter, while The Bronx had leasing activity of 75,300 sq., mainly in the Hunts Point, Port Morris and South Bronx submarkets.
“Leasing activity was once again dominated by e-commerce companies expanding their operations in order to accommodate the increase in online shopping due to both secular changes and the ongoing Covid-19 pandemic,” said Nicole Larusso, CBRE Director of Research & Analysis.
The largest lease transaction during the quarter included the above mentioned, 975,000 sq.-ft. lease by an e-commerce tenant at 526 Gulf Avenue in Staten Island; a 336,500 sq.-ft. commitment by an e-commerce company at 640 Columbia Street in Brooklyn; and a 311,796 sq.-ft. deal for an e-commerce company at 280 Richards Street in Brooklyn.
On the investment sales front, the NYC industrial market recorded 17 user and investment sales totaling over one million sq. ft. in the third quarter, a quarter-over-quarter increase of 77.3%. The average asking sale price remained unchanged for the third consecutive quarter at $381.06 per sq.-ft.
Leasing activity quarter-over-quarter increased by 70.9%, with more than 1.6 million sq. ft. comprised of pre-leased space in planned or under-construction Class A warehouse and distribution space. Staten Island experienced the most leasing during the quarter driven by a prominent e-commerce tenant committing to 975,000 sq. ft. of space in the fourth and final building in the Matrix Global Logistics Park in the MidIsland submarket. Brooklyn was a close second with more than 790,000 sq. ft. comprised of two large pre-leases in the Red Hook submarket. Queens saw leasing activity of more than 340,000 sq. ft. for the quarter, while The Bronx had leasing activity of 75,300 sq., mainly in the Hunts Point, Port Morris and South Bronx submarkets.
“Leasing activity was once again dominated by e-commerce companies expanding their operations in order to accommodate the increase in online shopping due to both secular changes and the ongoing Covid-19 pandemic,” said Nicole Larusso, CBRE Director of Research & Analysis.
The largest lease transaction during the quarter included the above mentioned, 975,000 sq.-ft. lease by an e-commerce tenant at 526 Gulf Avenue in Staten Island; a 336,500 sq.-ft. commitment by an e-commerce company at 640 Columbia Street in Brooklyn; and a 311,796 sq.-ft. deal for an e-commerce company at 280 Richards Street in Brooklyn.
On the investment sales front, the NYC industrial market recorded 17 user and investment sales totaling over one million sq. ft. in the third quarter, a quarter-over-quarter increase of 77.3%. The average asking sale price remained unchanged for the third consecutive quarter at $381.06 per sq.-ft.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
