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Bronx Q1 Market Report

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Bronx Q1 Market Report Q1 MARKET REPORT Bronx Industrial/Flex Leasing All information contained herein is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. The content is provided without warranties of any kind, either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful,Volume independent examination of the 1, property toIssue determine to your satisfaction 1 |the suitability 1st of the propertyQuarter for your needs. 2018 Q12018 Market Report BRONX INDUSTRIAL/FLEX LEASING The Bronx industrial/flex market continues to be one of the last frontiers for “Last Mile” warehous- es. The overall availability rate is a little over 10% which means it is still ripe with opportunity. The majority of the availability exists in the Hunts Point and Morrisania Submarkets. Average asking prices range from $15.00 to $25.00 which makes it very cost effective relative to Queens and Brooklyn. After years of speculation and rumor, the recent news (in January) of the Riverside commercial site at 2505 Bruckner Boulevard being redeveloped into a multi-level commercial distribution center could be a gamechanger for the County and a destination “last mile” industrial facility. An enormous, 840,000 square feet on 20 acres of land, the distribution center is slated to have two levels of loading and unloading. With its proximity to the Hutchinson Parkway, Cross Bronx Expressway and Bruckner Expressway, this redevel- opment would make an ideal hub for E-Commerce distribution. Last week Jet.com announced a 250,000 sf lease at the former ABC Carpet building. This transaction stamped the Bronx as a prime destination for e-commerce tenants. According to Costar, e-commerce has accounted for over one-third of industrial leases since 2010, and with e-commerce retailers racing to the prize of same-day delivery, this percentage will con- tinue to rise in a large New York marketplace. New warehouse development in the greater New York market has typically gone horizontal, utilizing large areas of land in Westchester, Rockland, Putnam, and New Jersey. However, same-day delivery requires logistics companies to build vertically in the hopes they can procure land closer to high-population areas. While the Bronx County has only 17 properties with ceiling heights over 20 feet, there is opportunity to build vertically. The recent Jerome Avenue rezoning to residential has brought to light the issue that the Bronx industrial market has, for the better part of a decade, seen a steady and consistent loss of hundreds of thou- sands of square feet of industrial space in the market each year. This is occurring at a time tenants and man- ufacturers based in other, more expensive boroughs have been seeking the cheaper space and proximity to Manhattan via bridges and highways that the Bronx readily provides. This has contributed to the increase in asking rents in the Bronx, which have piqued in the $25 per square foot range. Though availability has risen, the majority of vacancies are limited to spaces in the 5,000-10,000 square foot range. With Jet.com’s announcement we anticipate that the few large blocks that are available, won’t last long. BRONX INDUSTRIAL SUBMARKETS Riverdale Northwest Bronx Northeast Bronx Fordham Central Bronx Bathgate Zerega Throggs Neck Hunts Point Morrisania All information contained herein is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. The content is provided without warranties of any kind, either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful, independent examination of the property to determine to your satisfaction the suitability of the property for your needs. SUBMARKETS BY THE NUMBERS Submarket Total Market Size (SF) Total Available (SF) Bathgate 3,817,664 362,291 Central Bronx 913,036 15,350 Fordham 721,625 74,170 Hunts Point 8,712,141 1,087,406 Morrisania 9,993,512 857,340 Northeast Bronx 2,120,901 301,750 Riverdale 48,378 10,600 Throggs Neck 29,450 10,700 Zerega 2,826,638 360,300 12,000,000.00 1,200,000 Total Market Size (SF) Total Available SF 10,000,000.00 1,000,000 8,000,000.00 800,000 6,000,000.00 600,000 4,000,000.00 400,000 2,000,000.00 200,000 0.00 0 Bathgate Central Fordham Hunts Point Morrisania Northeast Riverdale Throggs Zerega Bronx Bronx Neck All information contained herein is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. The content is provided without warranties of any kind, either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful, independent examination of the property to determine to your satisfaction the suitability of the property for your needs. SUBMARKETS BY THE NUMBERS Submarket Average Asking Rate* Availability Rate Bathgate $15.91 9.49% Central Bronx $23.00 1.68% Fordham $25.45 10.28% Hunts Point $ 17.18 12.48% Morrisania $19.37 8.58% Northeast Bronx $16.51 14.23% Riverdale $18.00 21.91% Throggs Neck $19.45 36.33% Zerega $18.31 12.75% $30.00 40.00% Average Asking Rate Available Rate 35.00% $25.00 30.00% $20.00 25.00% $15.00 20.00% 15.00% $10.00 10.00% $5.00 5.00% $0.00 0.00% Bathgate Central Fordham Hunts Morrisania Northeast Riverdale Throggs Zerega Bronx Point Bronx Neck *Asking rates are quoted on a gross basis. All information contained herein is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. The content is provided without warranties of any kind, either express or implied. RM Friedland, LLC, its agents or employees shall not be held liable to anyone for any errors, omissions or inaccuracies under any circumstances. You and your advisors should conduct a careful, independent examination of the property to determine to your satisfaction the suitability of the property for your needs. For more information, please contact: Selom Goka Eseosa Eke Research Manager Marketing Manager rmfriedland.com • [email protected] • 914.968.8500.
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