NY Outer Borough Industrial: Strongest Q1 Since ’19 

New York Outer Boroughs reveal a strong start to the year, with leasing and absorption performing well and vacancy rates and rents remaining stable, according to Cushman & Wakefield’s first quarter 2024 industrial statistics. The market showed the strongest first quarter new leasing activity since 2019, totaling 1 million square feet, a significant increase of 171.6% from the previous quarter. Demand continues to surpass supply, with nearly 500,000 square feet of positive absorption. 

The overall vacancy rate remained stable at 4.5%, with decreases in the Bronx and Queens markets. Despite a slight decrease in direct average asking rents to $28.14 per square foot, high-quality spaces are leasing well. The Outer Boroughs’ industrial development pipeline is expanding, with 1.5 million square feet currently under construction and 414,000 square feet already delivered this year.  

“The industrial market has continued to be a bright spot in New York’s commercial landscape as demand continues to outweigh supply,” said Dimitri Mastrogiannis, senior research analyst at Cushman & Wakefield.