CBRE NYC Q1 Industrial Report: Market Returns to Normalcy
CBRE has released its 2023 Industrial Figures report for the first quarter, which shows that the industrial real estate market in New York City remains healthy. However, economic pressures such as rising interest rates and persistent inflation are still restraining consumer spending.
While demand for space has cooled to pre-pandemic levels, pricing is still moderating. Leasing velocity, which includes new leases and renewals, decreased to 730,000 square feet in Q1 2023, a quarter-over-quarter decrease of 52.0% and 25.6% lower than the three-year average.
The availability rate for all asset classes dropped by 30 bps quarter-over-quarter to 6.5%, while the Class A availability rate declined by ten basis points to 6.2%. Meanwhile, the average asking rent for all asset classes increased by 2.1% quarter-over-quarter and 13.7% year-over-year to $25.59 per square feet.