CBRE: Strength of NYC Industrial Market Persists Through Q2 2020

13 Jul 2020

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New York City’s industrial market continued to perform well during the second quarter of 2020 despite the economic shutdown brought on by the COVID-19 pandemic, according to CBRE’s New York City Industrial MarketView. The report shows positive absorption of over 575,000 sq. ft. lowered the availability rate to 8% and the vacancy rate to 4.8%.

 

Quarterly leasing velocity, which includes new leases, expansions and renewals, totaled nearly 1.3 million sq. ft. in Q2 2020. Although the sector experienced a 54.9% decrease quarter-over-quarter, leasing velocity in the second quarter was on par with the six-quarter running average of 1.3 million sq. ft.

 

“The demand for warehouse and distribution space by e-commerce companies drove the sector’s leasing activity in the second quarter,” said Nicole LaRusso, Director of Research and Analysis for CBRE’s Tri-State Region. “With consumer spending habits drastically shifting towards online shopping, e-commerce companies’ needs for warehouse and logistics space will continue to position the city’s industrial properties as a safe investment for building owners.”

 

Average asking lease and sale rates remained stable quarter-over-quarter at $23.37 per sq. ft. triple-net and $383.19 per sq. ft., respectively.

 

The full New York City Industrial MarketView is attached.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.