The industrial space / warehouse market is red hot across the nation and especially in New York City, which has become one of the world’s leading logistics hubs thanks to its diverse population and global prominence. Prior to Covid, the e-commerce boom drove a strong demand for industrial space that is suitable for shipping and receiving goods.
With 158 available industrial spaces find industrial space for rent for rent with an average size of 21,100 square feet and a maximum size of 331,700 square feet, finding the right industrial space to accommodate your business’s needs is simple. This is especially true in New York City, which has an abundance of options for businesses with a variety of requirements including those that need to locate near a port or airport for efficiency, and those looking for space near a rail or highway for cost-effective transportation.
New York’s thriving tech and biotech sectors also create a high demand for industrial space, as do its diversified economy and focus on finance, hospitality, tourism, and the arts. The city’s robust infrastructure, extensive public transportation system and prestigious location make it an attractive destination for companies to establish or relocate to.
The national industrial real estate market continues to perform well, with vacancy rates falling in most major markets and lease prices rising. In 2023, the largest market for industrial space in the United States is Atlanta, which posted record sales volumes this year. For instance, Stockbridge sold a 585,637-square-foot outdoor distribution facility in Gwinnett County for $40 million. The city is also the location of a new logistics center owned by Blackstone’s Link Logistics.
Other major industrial markets with strong fundamentals include Los Angeles, Orange County and the Inland Empire. In these markets, the spread between in-place and new rents was among the highest in the country in November.
The national vacancy rate ticked up in November, though it remains close to 4% and below the long-term average. The increase in vacancies can be attributed to a return to normal demand after the pandemic, along with a record level of new supply deliveries.
While it’s important to consider the location of any prospective industrial space for rent, it’s equally as crucial to understand the specific features and requirements of your company’s operations and supply chain. Once you’re clear on these factors, a commercial real estate broker with deep industry expertise can help you find the perfect warehouse for your business needs and provide a seamless leasing process from start to finish.