New York City Industrial Figures Q1 2025

In Q1 2025, New York City industrial leasing velocity increased 119.2% quarter-over-quarter to 880,000 sq. ft., 34.7% higher than the two-year average. Demand was driven by third-party logistics providers and energy distributors looking for mid- and small-sized space. On the supply side, the development pipeline fell to 3.0 million sq. ft. One unleased property totaling 680,000 sq. ft. completed construction and two properties totaling 470,000 sq. ft. broke ground during the quarter. While Class A average asking rents continued to decline in the face of rising vacancy, overall rents grew 4.1% as the composition of available industrial space became dominated by new construction.