New York Industrial Market Report

Modernization wave coincides with span of softer leasing. The distribution network across the five boroughs is undergoing notable enhancement in 2024, with the delivery of four separate logistics centers. Largest among these facilities is the 1.8 million-square-foot Sunset Industrial Park in South Brooklyn, owned and occupied by FedEx. Other notable projects, however, were still unclaimed as of July, with space demand subdued in recent periods. Net absorption has been negative in five of the past eight quarters as warehouse tenants in particular rightsize space needs after stockpiling safety inventories during the pandemic. While this dynamic is impacting recent and upcoming completions the most, facilities laid out well for contemporary needs are still favored. Vacancy among properties built between 2000 and 2018 was under 3 percent exiting June, over 300 basis points under the metrowide level.