New York City Industrial Market Report

Role in regional supply chain should aid demand. Economic volatility and global trade shifts have prompted many industrial tenants in New York City to reevaluate their space needs. That has increased vacant stock by 2.9 million square feet over the past year ended June, raising vacancy to its highest level since at least 2000. Fortunately, near-term pressure from new supply will be scant, as the active pipeline in August equaled just 0.2 percent of existing stock. Long-term industrial demand, meanwhile, remains relatively firm despite high fuel costs and delays at the Panama Canal. While loaded container volume at the ports of New York and New Jersey fell 1.2 percent year-over-year through July, air freight at John F. Kennedy International Airport rose by 4.6 percent.