Warehouse and industrial space in Sunset Park, Brooklyn, NYC

Warehouse and industrial space – Sunset Park is nested between 15th Street and 65th Street, from 9th Ave to New York Harbor. This famous industrial neighborhood is known for its ethnically diverse population of over 100,000 residents, with an industrial area of warehouse space for rent, sale, or lease. Sunset Park became a destination for maritime distribution, a result of the unobstructed stretch of water-frontage over the past century. Historically, the backbone of Sunset Park has been its industrial sector, anchored by three main habitats: The Brooklyn Army Terminal, Bush Terminal, and Industry City. Altogether these form a majority of the warehouses and industrial space of Sunset Park, with a wide range of local businesses. Owners invest heavily in the local infrastructure, including railways and roads, to become a new area and provide greater functionality. With its ideal location on Upper New York Bay, a growing residential population, and access to the public transportation networks, Sunset Park will continue to be a waterfront destination. In modern times, lifting rents and purchase prices for industrial space have been threatening Sunset Park’s affordability for businesses.

Warehouse space for sale in Sunset Park, Brooklyn, NYC

Each year and specifically between 2012 and 2018, Sunset Park warehouse industrial space had the highest property sales in all Brooklyn. The highest number of transactions occurred in the yearly 2013, the year that the great Jamestown Properties acquired Sunset Park Industry City. Sadly New York’s rent regulation laws made a significant impact on the investment sales market in the first quarter of 2019, with sales around 29% to 376 transactions. Some Real estate firms are marketing a warehouse space for $110 million, with pricing at $245 per foot. One major sale hits $265 million — a onetime record of $750 per foot. The average price per foot in 2018 was almost $492, which is $100 more per foot than what they sell for in Sunset Park, and this is a good example.

Warehouse space for rent in Sunset Park, Brooklyn, NYC

The new rent regulation laws enacted in the past removed several essential benefits to rental property owners, such as the ability to push rents high after making some unwanted renovations or the right to remove an industrial space from rent-regulated status when the monthly rent surpassed a predetermined threshold. Investors are pushed to consider buying other asset types, namely warehouses and industrial sites. Industrial rental rates are near its highest levels, while there is a dragon competition of foreign purchasers spending almost $61 billion since 2010. Borough warehouses are in the $20- to $30-per-foot range. This type of building has little for sale, and they now fetch $200 – $225 per foot or higher. In the past, Brooklyn has lost millions of square feet of industrial space. In 2018 average price per square foot for an industrial building in Sunset Park was $386, a significant step-up of 28%, while leasing million-square-foot trucking packages into Sunset Park, NYC is both time-consuming and pricey.