Marcus & Millichap publishes 2026 New York City Industrial Investment Midyear Outlook

Manhattan, NY Marcus & Millichap published its 2026 New York City Industrial Investment Midyear Outlook.

“New York City’s industrial market is moving into a more disciplined phase, with a sharp slowdown in deliveries helping stabilize fundamentals after several years of supply pressure,” said John Horowitz, executive managing director and chief revenue officer, Northeast Division. “In a land-constrained market with the highest average asking rent among major U.S. industrial metros, well-located infill assets remain strategically important for investors focused on long-term value creation.”

Key findings include:
• Total deliveries in New York City are expected to fall to 700,000 s/f in 2026, less than one-third of the annual average recorded from 2022 through 2025.
• After rising 250 basis points over the past two years, the market’s vacancy rate is forecast to reach 9.1% by year-end as supply pressure moderates and demand steadies.
• Spaces under 50,000 s/f, particularly single-story buildings with functional loading, recorded a slight increase in leasing, indicating continued demand for existing infill product.
• Newly delivered larger and multistory logistics properties in Queens and the Bronx are still working through elevated vacancy, with 2020s-built properties carrying vacancy rates above 35%.
• Recently completed freight-access improvements in Hunts Point and expanding marine freight initiatives are expected to help sustain interest in nearby industrial properties.

“Small-bay infill properties, functional single-story space and select port-adjacent corridors are positioned to stand out as the market works through elevated vacancy in newer large-format product,” Horowitz said.