New York City’s industrial market continued to perform well during the second quarter of 2020 despite the economic shutdown brought on by the COVID-19 pandemic, according to CBRE’s New York City Industrial MarketView. The report shows positive absorption of over 575,000 sq. ft. lowered the availability rate to 8% and the vacancy rate to 4.8%.

Quarterly leasing velocity, which includes new leases, expansions and renewals, totaled nearly 1.3 million sq. ft. in Q2 2020. Although the sector experienced a 54.9% decrease quarter-over-quarter, leasing velocity in the second quarter was on par with the six-quarter running average of 1.3 million sq. ft.

“The demand for warehouse and distribution space by e-commerce companies drove the sector’s leasing activity in the second quarter,” saidNicole LaRusso, Director of Research and Analysis for CBRE’s Tri-State Region. “With consumer spending habits drastically shifting towards online shopping, e-commerce companies’ needs for warehouse and logistics space will continue to position the city’s industrial properties as a safe investment for building owners.”

Average asking lease and sale rates remained stable quarter-over-quarter at $23.37 per sq. ft. triple-net and $383.19 per sq. ft., respectively.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.