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NY Outer Boroughs Industrial Vacancy Rate Rises
In the third quarter, the industrial vacancy rate for the New York Outer Boroughs increased slightly, rising by 20 basis points and fluctuating around the four-year average of 4.5%. According to Cushman & Wakefield’s Q3 industrial report. Queens experienced a notable change, with a 40 basis point increase to 4.7%.
Despite challenges in the market, the Outer Boroughs saw modest growth in overall asking rents, with an increase of $0.03 per square foot, pushing the rate past $26.00 for the first time in the market’s history. The development pipeline is growing, with 3.5 million square feet under construction, including 2.6 million square feet of multi-story warehouse space expected to be delivered by the end of 2024.
The report emphasizes the continued interest in industrial outdoor storage and low-coverage properties, which offer on-site trailer/van parking and adequate loading requirements that may not be available in Manhattan.
