Will Queens, NY Reign for Warehouse Distribution Centers?
The executive director of the Queens Economic Development Corporation in an EXCLUSIVE GlobeSt.com interview previews the RealShare New York session on urban logistics facilities.
NEW YORK CITY—E-commerce has pinched brick-and-mortar retail but has created a booming demand for “last mile” distribution facilities. Even international institutional investors are pursuing this sector as the latest hot investment. For New York City, that’s putting a focus on areas in Manhattan’s outer boroughs, Brooklyn, the Bronx and Queens as well as outside the city in NJ and in upstate NY.
Seth Bornstein, the executive director of the Queens Economic Development Corporation, will be a panelist at the RealShare New York conference coming up on Nov. 13, 2018, at the Yale Club at 50 Vanderbilt Ave. in Midtown Manhattan.
As for current distribution center trends, location is key. There are two airports in Queens. But Bornstein notes the following:
“You have Kennedy Airport where over the last 15 years there have been cargo distribution centers, not really LaGuardia because you need the space, but Kennedy is where the function is,” says Bornstein. “Around Kennedy, there are hub communities.”
Last month, New York Governor Andrew Cuomo announced a $13 billion plan to upgrade Kennedy Airport. The borough’s EDC head says that will not only affect the airport but areas around it, including increasing activity for distribution warehouses.
E-commerce distribution ideally is close to dense urban areas where there is a demand for products and also close to the workforce employed at the warehouse. In some rural areas, there is plenty of space. But distribution centers need workers. This again increases the appeal of the boroughs.
Bornstein notes Queens is fragmented. There are pockets of activity in Long Island City, Flushing and Jamaica, which are considered the borough’s three downtowns. “They each have functions of industrial sectors, plus Glendale and the area around Newtown Creek where the Pulaski Bridge is, that’s a big industrial area. That’s probably the most traditional, industrial warehouse distribution area left in Queens, that pocket near Pulaski Bridge,” he says.
He emphasizes Glendale’s potential. “It’s a central location in the region, with the BQE access going south to Brooklyn, Lower Manhattan, and there’s the Verrazzano. You’re also close to Kennedy for cargo,” he says. “And it’s not going to change to residential. And it’s not going to become artists’ loft space. That’s a long time coming.”
In addition to insider pointers like these—Bornstein will share his views on some of the challenges for industrial investors in urban logistics. With first-hand experience in not only observing but also shaping Queens dynamic growth, he’ll share information about pricing, negotiations and what cities and communities are looking for with last mile facilities. Bornstein will be joined by Zach McHugh, SVP of Sitex Group and Josh Weingarten, director of capital markets at Triangle Equities at the 2018 RealShare New York panel on this latest investment trend. To register and attend the conference, including an evening networking cocktail reception click on REALSHARE NEW YORK.