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Market Report

New York City Industrial Market Report

2024 Investment Forecast

Incoming Supply Torrent to Impact Warehouse and
Distribution Assets in the City’s Outer Boroughs

Notable inventory additions stoke vacancy as sector contests with headwinds. Last year was a rocky period for the city’s tech and financial firms, which shed some positions, and by relation impacted the demand for last-mile delivery space servicing these highly-compensated personnel. While recruitment across traditional office-using sectors is expected to pick up in 2024, logistics providers could hold off on industrial leasing commitments until the city’s employment base — and by extension consumer spending — are on firmer footing. Amid these demand headwinds, the city is expected to see record-breaking speculative supply additions, headlined by the 1.3-million-square-foot Bronx Logistics Center located less than a mile from the RFK-Triborough Bridge. A pipeline including several 100,000-square-foot-plus assets will put particular pressure on existing spaces in the Bronx, Brooklyn and Queens, though a growing residential base across these boroughs will help integrate this year’s deliveries moving forward. More than 40,000 multifamily units are underway in these areas as of early 2024, facilitating a solid foundation for long-term logistics demand. 

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