As we continue to track changes and trends in the industrial sector on Long Island, two things remain constant: Go East and Go Up. The east offers land availability and height is playing a more significant role than ever in space utilization. It’s always been about cost effectiveness. When land was plentiful and less costly, it was more economical to build out, rather than up. With the shortage of land, the price has escalated such that, to achieve the same cubic feet of space, it is necessary to build or raise the ceiling heights for better economic functionality. This, coupled with better material handling equipment, makes it practical and necessary to accommodate growth and maintain profitability. A prime example of this is the pending sale of the Stimpson Company property in Bayport — a low-ceiling, 200,000-square-foot building set on 22 acres. An old line regional company is buying this property because it has an oversized plot, and while they were planning to raise the ceiling from 15 to 40 feet clear, plans were only recently abated as a result of the current economic environment. As mentioned, the towns of Islip and Brookhaven have been aggressively seeking industrial growth through their …
New York
The Soho neighborhood in Manhattan, New York City, has become synonymous with shopping and entertainment. Bounded by Houston Street on the north, Layfayette Street in the east, Canal Street on the south and Sixth Avenue on the west, the growing popularity of the area has made it the place to be for retailers. Just in the last few years, the retail rental rates on Broadway in Soho have increased dramatically. Three years ago, retail rents on the first block on Broadway between Prince and Houston streets were around $200 per square foot, but today even small space on the first and second blocks of Broadway are ranging from $400 to $500 per square foot. Many high-end fashion retailers are clamoring to open stores in Soho not just for the opportunity for high retail sales, but to have a presence in one of Manhattan’s most sought after markets. Hugo Boss recently signed a substantial lease on Broadway between Prince and Spring streets, which in turn has prompted other major fashion retailers to seek space in the area. Many top European designers are also beginning to look for space in the Soho area. The Soho area is not just attracting small shop …
With more and more New York City industrial neighborhoods becoming gentrified, industrial properties are in increasingly short supply. The situation is especially notable in the outer boroughs, where most of city’s industrial real estate activity is focused. Over the past ten years, approximately 30% of industrial property in the outer boroughs has been converted for other uses. In fact, the city’s decision to rezone industrial neighborhoods for residential and commercial development has created a strong market for warehouse and manufacturing spaces. The outer boroughs are all experiencing similar industrial market conditions, with a vacancy rate hovering at about a mere 3%. In Brooklyn, the Bush Terminal and Gowanus areas remain heavily industrial, while Red Hook, Green Point and Sunset Park are seeing an increase in residential developments. The Bronx has always offered a smaller inventory of warehouse and manufacturing facilities, predominately in Port Morris and Hunts Point, and recent conversions have made availabilities tighter than ever. The industrial market on Staten Island, which was always limited, has not experienced much change. Queens is currently the most active borough in the industrial sector. Many neighborhoods, such as Woodside, Maspeth, Corona and College Point, have kept their industrial identities. Other areas, like …
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