Amazon Grows NYC-Area Presence With 3 More Warehouse Leases
Amazon is planning to open three new delivery centers in the New York area in the first half of next year after locking down leases across the city and suburbs.
The Jeff Bezos-led company signed up for space at 5 Warehouse Lane in Elmsford, a 364K SF building in Westchester County, The Real Deal reports. It also leased space at 2300 Linden Blvd. in Brooklyn and at 1502 Bassett Ave. in the Bronx. The sizes of those leases were not made public. Realterm Logistics owns the properties in Westchester and the Bronx. The Brooklyn site is owned by and affiliate of Harbor Group International, an HGI spokesperson confirmed to Bisnow.
Amazon also leased 200K SF at Prologis’ 1055 Bronx River Ave. this summer, according to Business Insider, and 450K SF at Matrix Logistics Park on Staten Island at the beginning of 2020, per Crain's New York Business. It signed on for another 975K SF this month to lease the remainder of that property.
The deals speak to the voracious appetite e-commerce companies and logistics firms have for space right now. Throughout the coronavirus pandemic, online shopping use has soared as people have continued to avoid public places. The city’s industrial market is reaping the rewards.
While many asset classes have taken a hit, the industrial sector is performing well thanks to the surge in demand.
“[Industrial] was a stepchild at best ... and now all of a sudden, that and multistory residential in the suburbs are the only two food groups that anyone is interested in talking about,” Dov Hertz, a developer focused primarily on logistics, said on a recent Bisnow webinar. “There isn’t the COVID discount in industrial today … and I don’t see one happening [in the future].”
JLL’s national first half industrial report released earlier this year found that e-commerce companies locked down 56M SF of warehouse space nationwide in the first half of this year, compared to 9M SF in the whole of 2019.
UPDATE, OCT. 30, 11 A.M. ET: This story has been updated to reflect Harbor Group International's ownership of 2300 Linden Blvd.
