Report: Sunset Park transactions drive Brooklyn industrial real estate
The New York City industrial real estate market outside Manhattan showed “healthy growth” during the first quarter of 2022, according to Colliers, a global commercial real estate firm. And much of the activity in Brooklyn was centered around the Sunset Park area.
Colliers, a Toronto-based company, provides services to commercial real estate users, owners, investors and developers. It has more than 400 offices in 68 countries.
Among the “Select Q1 Sale Transactions” the company chose to highlight in its report was the sale of a building at 5112 Second Ave. for $85 million. The warehouse, which was acquired by a joint venture between O’Conner Capital Partners and CBRE Investment Management, was described as being fully leased at the time of sale.
The report also highlighted three Brooklyn industrial rental transactions: a lease for the New York Embroidery Company at 140 58th St. (part of the Brooklyn Army Terminal); a lease for Care/Of, a healthy products firm at 850 Third Ave. (the Liberty View Industrial Plaza); and Vestiaire Collective, a company dedicated to second-hand luxury and fashion products, also at 850 Third Ave.
All of the above-mentioned locations are part of the industrial area of Sunset Park, west of the Gowanus Expressway.
Colliers, in its report, divides what it calls the “outer borough market” into several geographical segments: Bronx, Northwest Queens, Central Queens, Northeast Queens, South Queens, North Brooklyn, South Brooklyn and Staten Island.
Based on a map included in the report, “North Brooklyn” appears to comprise most of Brooklyn north of Prospect Park, with Eastern neighborhoods like East New York and Starrett City added in.
Among all the sectors covered by the quarterly report, Colliers said, “The North Brooklyn submarket has the highest asking rent for industrial space in the market with $25.78 per square foot, a 13.2 percent increase year over year.”
According to Colliers, South Brooklyn has 340 industrial buildings, with a 10.9 percent availability rate and an average asking rent of $18.04 per square foot. North Brooklyn has 742 industrial buildings, with a 4.5 percent availability rate and an average asking rent of $25.78 per square foot.
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