Landlords sold about 48.8 million square feet of industrial space last year, including about 6.1 million square feet in the city. This was the second-lowest amount of space that traded hands dating back to 2015, ahead of only 2017, which saw just 5.3 million square feet worth of industrial deals, according to the report.
Industrial space in the city still commands the highest price per square foot in the region, at $595, followed by New Jersey, at about $170, the report says. Properties in the city sold at a discount in 2020 but rebounded sharply last year, according to CBRE.
Queens alone saw about $1.5 billion in industrial transactions last year, propelled largely by Hackman Capital Partners’ and Square Mile Capital Management’s $600 million deal to buy the Kaufman Astoria Studios. Bergen and Passaic counties in northern New Jersey were close behind, with just over $1.4 billion in deals, and Somerset and Middlesex counties in central New Jersey were close as well, with just under $1.4 billion.
Industrial real estate was the third-largest sector for investments in the tristate area last year, behind $17.1 billion worth of deals for multifamily properties and $15 billion worth of deals for office properties, the report says.
The record-breaking year for industrial properties was largely due to an extremely busy fourth quarter, which had about $5.2 billion worth of deals—almost half of the sales volume for the year. The fourth quarter also saw 623 deals, about one-third of the yearly total. The $10.6 billion in total investment volume was a 64% increase compared to that of 2020 and 77% higher than the $5.9 billion average from 2015 to 2019, according to the report.
The city is facing a major supply crunch of industrial space despite strong demand for it. Companies leased about 620,000 square feet of industrial space during the first quarter of 2022—down quarter over quarter and year over year—and there were just two Class A industrial spaces still available at the end of the quarter, according to CBRE.