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E-Commerce Turbocharges NYC Industrial Sales
Although New York City’s investment sales market continues to slow overall, industrial is riding high. Year-to-date volume in the sector is up 145% citywide from 2016, and it’s poised to reach $2.4 billion for the year, according to B6 Real Estate Advisors.
“Industrial’s sudden rise is evidence that the ambitions of online retailers are having a dramatic impact on the investment market,” B6 reported. “Amazon and Walmart, for instance, have both opened sprawling fulfillment centers in NYC recently to cut down on delivery times.”
Meanwhile, other companies are seeking space close to urban cores from which they can reach consumers quickly.
Third-quarter industrial purchases were concentrated in Brooklyn, with neighborhoods like Flatbush and Bedford-Stuyvesant leading the way. Although demand for smaller warehouses has grown across the country, sales prices in New York aren’t shrinking, says B6. The average industrial deal topped $12 million in the third quarter, the highest ever.
Pictured: Ikea’s forthcoming distribution center on Staten Island.
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