Industrial property values are going up in Queens.
The slimming inventory of industrial facilities and high demand has led to a 48 percent bump over the year in average prices for industrial properties in the borough, according to real estate services firm JLL’s third quarter market report.
The report blames the price increase on conversions of old factory buildings and sites to new uses by development companies, such as The Durst Organization’s purchase of a portfolio of three industrial properties in Hallet’s Point from Famitech Inc., which will be transformed into a sprawling residential complex.
“Developers are reducing industrial product in Queens by converting facilities to higher and better use,” the report said. “Manhattan developers are increasingly investing in Queens due to lower land costs. This has increased industrial property values in Queens.”
In addition to rising values, industrial property rents are also on the rise, according to the report.
Owners of warehouse and manufacturing sites were likely to ask an average of $13.13 per square foot for rent, based on findings from the newly released report, up from $12.23 per square foot earlier this year.
Read the full report by here.