New York City’s Industrial Stock is Outdated. Here’s How Developers are Responding.

Investors and occupiers alike are still bullish on industrial real estate and for good reason. The coronavirus pandemic dampened activity nationally across most property sectors, but the amount of dollars spent on industrial property has climbed steadily since 2016. In the year ahead, e-commerce will fuel further expansion of the sector, as retailers and shippers continue updating their supply chains to meet demand.

According to CBRE, 250 million square feet of industrial net absorption is forecasted for 2021, topping a five-year annual average of 211 million square feet. Research firm Deloitte sees demand for 850 million square feet of additional industrial space in the U.S. by 2023, with e-commerce as a major contributor.