Industrial Construction Expands In Key Northeast Markets

Industrial construction in the Northeast shifts to mid-sized projects as demand rises for logistics and cold storage space.

July 29, 2025

Valerija I.

The Northeast industrial pipeline for Q2 2025 is dominated by properties under 750K SF, indicating a strategic focus on flexibility and regional logistics needs.
Top developers include Innovo Property Group, Sagard Real Estate, and Thor Equities, who are each pursuing single large-scale projects across the region.
Notable availabilities include blocks in Long Island City, the Bronx, and Suffolk County, with cold storage and last-mile logistics as trending themes.

Key Takeaways

Developers Lean Smaller And Smarter

The Northeast industrial market in Q2 2025 reveals a strategic move toward mid-sized assets rather than mega-distribution centers, reports CBRE. No properties exceeding 1M SF were reported as under construction. Instead, the most active construction segments fall within the 100K–750K SF range, with very few projects exceeding 750K SF.

Who’s Building What

The quarter’s top developers are focusing on single, high-impact projects:

Innovo Property Group is leading with a 680K SF project.
Sagard Real Estate is developing a 331,700 SF facility.
Red Hook Industrial Owner, Sterling Organization, and Foster Property Group round out the list, each with one mid-sized asset under development.

Bar chart comparing industrial space under construction and pre-leasing rates across Northeast markets, with Philadelphia and PA I-78/I-81 Corridor leading in total square footage.

In Long Island and Connecticut, developers such as Thor Equities and The Silverman Group are building properties sized between 250K SF and 310K SF, with an emphasis on access to infrastructure and cold chain capabilities.

Prime Space Still Up For Grabs

Several large blocks of space remain available across the region, with highlights including:

2890 Review Ave, Long Island City – 428,384 SF
1 Nassau Place, Staten Island – 331,700 SF
307 Bruckner Blvd, Bronx – 92K SF
377 Carll’s Path, Suffolk County – 160K SF
Bradley Airport Logistics Center, Hartford – 250,240 SF

Market Trends To Watch

Cold Chain Focus: BGO Cold Chain and Venture One are jointly developing cold storage properties, reflecting rising demand in food and pharma sectors.
Last-Mile Urban Logistics: NYC boroughs and Long Island continue to attract logistics builds due to proximity to population centers.
Developer Consolidation: Most developers are pursuing single-site strategies rather than portfolio plays, signaling a careful, location-driven approach.

What’s Next

With no new mega-developments on the horizon, the Northeast industrial market is signaling a preference for scalable, strategically placed assets. Expect continued interest in locations near ports, airports, and dense population centers—especially for cold storage and e-commerce logistics needs.

According to CBRE projections, completions will peak in Q3 2025 at over 9M SF before steadily declining through mid-2026, suggesting a temporary oversupply followed by tighter conditions.