NEW YORK, N.Y. – JULY 14, 2025 – Cushman & Wakefield today released its Q2 2025 New York City Outer Boroughs Industrial Market Report, revealing continued stability and strong performance across key fundamentals. The industrial sector maintained positive momentum through the first half of the year, with healthy leasing activity, declining vacancy, and sustained development levels.
The overall vacancy rate fell to 5.2%, a 20-basis-point drop from the previous quarter, reversing the upward trend of the last two quarters. Direct average asking rents increased slightly to $28.93 per-square-foot, rising $0.06 quarter-over-quarter as rental growth begins to stabilize following a period of rapid escalation.
New leasing activity surged to 1.0 million square feet in the second quarter, marking the strongest quarter since Q1 2024 and a 30.5% quarter-over-quarter increase. Queens led the way in renewal activity, highlighting ongoing demand across the boroughs. Year-to-date, new leasing activity reached 1.8 million square feet and overall net absorption remained positive for the third consecutive quarter, totaling 419,000 square feet.
“Momentum has returned to the Outer Boroughs, with the drop in vacancy and consistent demand for quality industrial space signaling a resilient market,” said Dimitri Mastrogiannis, Senior Research Analyst. “A notable trend we saw in Q2 was the heightened demand for low-coverage and industrial outdoor storage sites, with nearly 20 acres leased during the quarter—demonstrating the unique value of these assets in a dense urban environment. Overall, with steady construction activity and leasing velocity on the rise, the NYC Outer Boroughs industrial market is well-positioned for a strong second half of 2025.”
The development pipeline in the boroughs remained active, with 1.1 million square feet currently under construction, while 350,000 square feet of build-to-suit space was delivered year-to-date
Cushman & Wakefield Reports Strengthening Fundamentals in NYC Outer Boroughs Industrial Market in Q2 2025
Gretchen Shoenberger • 7/14/2025
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