New York City Industrial Market Report
Large-Scale Supply Additions Put Pressure on
Existing Assets as Demand Cools
Multi-story warehouses prompt a notable supply transformation. New York is slated for a landmark year of development in 2023 as three multi-level logistics facilities in the outer boroughs contribute to the largest amount of square footage added since at least 1996. Chief among these is the Bronx Logistics Center, scheduled to deliver 1.3 million square feet to the city’s northernmost borough in September. The speculative project could increase the area’s vacant inventory by over 50 percent if available space is not absorbed. This comes on the heels of a similar Bronx-based project brought online in last year’s fourth quarter, the completion of which contributed to a localized jump in vacancy. The combined 1.2 million square feet underway in Queens denotes a comparatively less dramatic expansion here, with the important caveat that the majority of that space was accounted for as of June.