In the third quarter, the industrial vacancy rate in New York’s Outer Boroughs saw a slight increase of 20 basis points, hovering around the four-year average of 4.5%. Cushman & Wakefield’s Q3 industrial report revealed that Queens experienced a notable change with a rise of 40 basis points to reach 4.7%.
Despite market challenges, there was modest growth in overall asking rents for the Outer Boroughs, with an increase of $0.03 per square foot pushing rates past $26.00 for the first time ever in this market.
The development pipeline is also expanding as there are currently 3.5 million square feet under construction and an additional 2.6 million square feet expected to be completed by late-2024.
The report highlights ongoing interest in outdoor storage and low-coverage properties within this area due to their on-site trailer/van parking options and sufficient loading requirements that may not be available in Manhattan.
This article originally appeared on Connect CRE.
