- Industrial availability in NYC’s outer boroughs rose to 9.9% by end of 2025.
- Deliveries outpaced net absorption, driven by a major completion in Northeast Queens.
- Leasing activity remains concentrated in South Brooklyn but showed mixed signals.
- Construction starts and pipelines declined, signaling possible upcoming stabilization.
Supply Surpasses Demand
The industrial market in New York City’s outer boroughs saw a noticeable uptick in availability in Q4 2025, according to Globe St. Colliers reported the availability rate reached 9.9%, up 100 basis points year-over-year, as new deliveries exceeded demand. Net absorption was 314 KSF against total deliveries of 654.5 KSF, with a significant new project in Northeast Queens contributing to the surge.
Leasing Shows Mixed Trends
While leasing activity was generally healthy, the fourth quarter painted a mixed picture. Leasing volume was up 3.8% year-over-year but dropped more than 30% from Q3. Most leasing occurred in South Brooklyn—representing 54.8% of the activity. Super Value Wholesale Distributors renewed for 78,766 SF, making it the largest deal, while Sylvan Cabinetry and Maimonides Medical Center followed with 48 KSF and 46.9 KSF, respectively, mirroring broader patterns across the city where tenant demand remains active but uneven depending on submarket conditions.
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Rates and Landlord Strategies
Average asking lease rates for industrial availability slipped 1.4% year-over-year to $27.70 PSF, though they edged up slightly from the prior quarter. Landlords are adapting to rising vacancy by offering increased free rent, tenant improvement allowances, and willing to subdivide larger spaces to attract a broader range of tenants.
Pipeline Contraction Could Stabilize Market
Construction activity fell sharply to 556.8 KSF compared to 1.36M SF a year earlier, and no new projects broke ground in Q4. With older warehouses being converted to residential and no major new supply underway, Colliers believes the industrial availability rate should stabilize or improve over the next year as the supply-demand equation balances out.
