Your Gateway to the Future of Industrial Real Estate
Terreno Realty Corp. has recently secured a deal for a 48,000-square-foot industrial property in Long Island City, New York. Set on a prime 2.2-acre site located at 49-10 27th Street, this property is adjacent to the main entrance of the Queens-Midtown Tunnel, significantly enhancing its visibility and accessibility. This endeavor underscores the continuing evolution of New York's industrial sector in a competitive market.
The fully leased facility features 10 dock-high and 14 grade-level loading positions, making it highly efficient for logistic operations. With a total investment of $35.8 million, this redevelopment carries an estimated stabilized cap rate of 5.7%. The property is leased to a contractor and rigging provider and the lease runs through August 2036, which provides a sense of stability in an ever-changing economic landscape.
The Growing Demand for Industrial Space
In recent years, the industrial real estate sector has become increasingly important, particularly in areas like Queens and Brooklyn. According to Cushman & Wakefield, these two boroughs accounted for a staggering 88.9% of total leasing volume in the outer boroughs, highlighting the demand for industrial spaces. Despite some fluctuations in lease prices, Queens has maintained a relatively low overall vacancy rate of 5.0%, indicating strong market absorption.
This trend towards industrial leasing is propelled by the expansion of e-commerce and logistics, prompting significant investment from firms like Terreno looking to capitalize on this growth.
The Legacy of the Property
Interestingly, this property once housed UPS before Terreno acquired it for $31.1 million just earlier this year. Originally constructed in 1950, the building's legacy continues as it transitions to meet the needs of modern logistics. The ability to adapt older structures for contemporary use is a growing focus in urban planning and economic strategy.
Industry Insights
The potential for growth in the industrial sector highlights why businesses continually seek locations such as Long Island City. Given its proximity to major transportation hubs and a strong labor pool, it offers excellent logistics opportunities. Retail businesses, in particular, are eager to locate in such vibrant neighborhoods to reach their customer base more rapidly.
Future Predictions in the Industrial Sector
As demand continues to rise, we can expect even more innovative developments in the industrial sector. With real estate firms focusing on redeveloping existing spaces, the approach not only preserves historical structures but also offers modern facilities tailored to today’s logistical needs. Analysts predict a robust industrial real estate market driven by technological advancements and changing consumer habits.
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