The story for industrial in New York City's outer boroughs, which includes the Bronx, Staten Island, Brooklyn and Queens, is supply outpacing demand. That was at least the case to end 2025, leading to the availability rate in the fourth quarter spiking by 100 basis points year-over-year to 9.9 percent, according to a market report from Colliers.
Deliveries, while they fell to 654,500 square feet, from the 715,100 square feet seen at the end of 2025, outpaced net absorption, which came in at just 314,300 square feet. Colliers attributed the overall surge in availability to a "large completion in Northeast Queens."
Leasing, on the other hand, was more of a mixed bag, with Colliers stating that the category "remained healthy." For example, activity climbed by 3.8 percent year-over-year in the fourth quarter, but tumbled 31.8 percent in comparison to the previous three months. Most of the leasing was concentrated in South Brooklyn (54.8 percent of the total).
Super Value Wholesale Distributors took the largest lease, thanks to its 78,766 square foot renewal in South Brooklyn. Sylvan Cabinetry (in Northwest Queens and Maimonides Medical Center (in South Brooklyn) were the runners up, signing for 48,000 square feet and 46,900 square feet, respectively.
Similar to leasing, average asking lease rates trended similarly, down 1.4 percent year-over-year but up six cents per square foot from the third quarter, now sitting at $27.70 per square foot.
"Owners have adjusted their pricing expectations amid elevated availability," Colliers explained.
"Landlords are offering more generous free rent and tenant improvement allowances, and many are willing to subdivide larger blocks of space to attract smaller users."
That said, there's reason to believe that conditions will improve for industrial in NYC's outer boroughs in the short-term. Construction declined dramatically to 556,800 square feet compared with 1.36 million square feet at the end of 2024. Plus, nothing new broke the ground during the last three months of 2025, boding well for fundamentals to stabilize and potentially recover.
"In addition to the slowdown in new development, the industrial inventory continues to contract as older warehouse properties are demolished and converted to residential use," noted Colliers.
"A constrained construction pipeline and continued conversions will help temper increases in availability and stabilize the
market over the next year."
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