The Industrial/Warehouse market has continued to barrel ahead as a result of the tremendous unrelenting demand created by e-commerce.
Unfortunately, in direct contrast to the industrial market, the retail and office markets are under pressure to adapt and change as a result of the Coronavirus pandemic's effect on our work and personal lifestyle needs.
Because of the low supply of last mile land and real estate development opportunities that can accommodate large warehouses, developers are opting to build up.
Two multistory projects are being planned, one in Red Hook Brooklyn, NY and one in the Bronx. These projects will be the 1st of their kind in New York and among the 1st in the entire U.S.
The Red Hook Brooklyn project being built by developer Dov Hertz and funded by Goldman Sachs Group Inc is planned for a 3 story 370,000 square foot warehouse with truck ramps to the 2nd floor and elevators that can hold as forklift going to the 3rd floor.
The Bronx project is a joint venture of Innovo Property Group and Square Mile Capital Management LLC. The project is planned for an 840,000 square feet warehouse on the former Whitestone Multiplex Cinemas in the Bronx.
Multistory warehouses have been built in Asia and the demand in dense U.S. Cities is strong now.
John Morris, the head of Cushman & Wakefield's national industrial division says “there aren't any true limitations, if the density of population and demand are significant enough and the pricing of land is high enough, the same principle that justifies three stories can justify many more”.
According to a 2016 Kinsey & Co. report, by 2020 same day and instant delivery to consumers will make up 15% of last mile volume and will grow from there.
The Red Hook Brooklyn project located at 640 Columbia Street is costing $100 per square foot for the land and $200 per square foot to build. Rents will be in the $30 per square foot range.
According to Andrew Chung, chief executive of Innovo Property Group, everything about e-commerce is about speed. The Bronx project sits close to numerous highways and truck routes offering between 30 to 60 minute drives to the east side of Manhattan, Queens, parts of Brooklyn, Southern Connecticut, Westchester and Long Island.
If you are interested in selling your property or you know someone who is planning to sell their Brooklyn or New York property, whether a single family residential property, an apartment building, a commercial property, mixed use, multi family, coop or condo, vacant land or a development opportunity, call us. You will be very happy that you did.
We always bring our clients the top market price for their property and provide exceptional personalized service from initial consultation to closing.
Accord Real Estate Group
Your Brooklyn Realtors