Marcus & Millichap releases fourth-quarter 2026 NYC industrial market report

Manhattan, NY Marcus & Millichap has published its fourth-quarter 2026 New York City Industrial Market Report.

“New York City’s industrial market is showing a clear split between elevated overall vacancy and much tighter conditions,” said Jason Moskowitz, managing director, market leader. “North Brooklyn and Central Queens remain strong, showing how sharply performance varies by location as the broader market adjusts to higher availability. Multistory industrial vacancy remains the number one culprit of vacant space in the NYC marketplace.”

Key findings include:
• Metro industrial vacancy reached 9.7% in June, after tenants gave up more than 1.1 million s/f during the second quarter, the second-worst quarterly total in 24 years.

• Select submarkets remain notably tight, with North Brooklyn vacancy holding at 5.3% and Central Queens falling 60 basis points to 4.1%.

• New development remains near non-existent, with only three submarkets adding industrial space during the first half and the active August pipeline equal to just 0.2% of existing inventory.

• Average asking rents declined to $24.56 per s/f in June, returning to year-end 2023 levels, although rents increased in Northwest Queens and South Brooklyn.

• Investment activity strengthened, with deal flow rising 26% year-over-year in the 12 months ended June and the first-half transaction count reaching its strongest six-month level since the second half of 2022.

“Owner/users are the main driver of transaction activity, particularly in smaller deals,” said Moskowitz. “At the same time, institutional players have an almost insatiable demand for the rare 50,000 s/f plus sites that become available, creating activity across multiple investment strategies.”