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New York City Industrial Sector Finishes 2022 Strong
The New York City industrial market is in good health as leasing activity gained momentum in fourth-quarter 2022, reported CBRE. Class A completions in 2023 are expected to contribute to even more robust leasing citywide while exerting upward pressure on average asking rents.
Leasing velocity, including new leases and renewals, jumped to 1.5 million square feet in Q4, a quarter-over-quarter increase of 106% and a year-over-year increase of 115%. Annual leasing velocity was 3.7 million square feet in 2022, up 23% from 2021.
The availability rate for all asset classes increased 10 basis point quarter-over-quarter to 6.8%, while Class A availability decreased by 120 bps to 6.3%. The average asking rent for all asset classes decreased by 1.7% quarter-over-quarter to $25.06 per square foot, while the average asking rent for Class A properties increased 1.1% quarter-over-quarter to $29.92 per square foot.
Pictured: Brooklyn Logistics Center.
- ◦Lease
- ◦Development