Brooklyn’s industrial real estate market is booming, fueled by its proximity to Manhattan, robust infrastructure, and the growth of sectors such as logistics, manufacturing, and creative industries. From warehouses and distribution centers to flexible spaces, Brooklyn provides a range of industrial properties catering to various business needs. Here’s an in-depth guide to Brooklyn’s industrial market, covering top areas, average rental costs, and key considerations for leasing.
Brooklyn offers numerous advantages for businesses seeking industrial space:
Brooklyn offers a variety of industrial properties that can meet different operational requirements:
Warehouses: Ideal for companies needing space for inventory, packaging, or last-mile distribution, Brooklyn’s warehouses often feature loading docks, high ceilings, and open floor layouts.
Distribution Centers: Designed for high-turnover operations, distribution centers in Brooklyn provide easy access to delivery routes, which is essential for companies focused on e-commerce or retail fulfillment.
Light Manufacturing Units: Many light industrial units in Brooklyn cater to small manufacturing or assembly needs, providing the necessary infrastructure without heavy machinery requirements.
Cold Storage Facilities: With an increase in food distribution and perishable goods demand, Brooklyn also offers cold storage facilities with temperature control for sensitive items.
Flex Spaces/Hybrid Units: These spaces combine office and industrial areas, offering versatility for businesses needing both administrative and production functions in one location.
Shared Industrial Spaces: Some industrial parks in Brooklyn offer shared spaces that allow small businesses or startups to lease a section within a larger facility, providing access to amenities and reducing overhead.
Brooklyn’s industrial areas each offer unique benefits for businesses:
Sunset Park (Industry City): Known for Industry City, Sunset Park is home to a diverse range of industrial properties, including warehouses, distribution centers, and light manufacturing spaces. The area has excellent access to the BQE and is ideal for creative industries and e-commerce businesses.
Red Hook: Red Hook provides larger industrial spaces, often at competitive rates. Its location near the Port of New York and New Jersey makes it ideal for businesses involved in logistics and warehousing.
Bushwick: Popular among creative businesses, Bushwick offers smaller industrial units, warehouses, and flex spaces that combine office and production areas, with good subway access for employees.
East Williamsburg: This area is known for its light manufacturing spaces and flexible units, ideal for small-scale production, art studios, and creative industries. East Williamsburg provides easy access to the L train, offering great connectivity to other parts of Brooklyn and Manhattan.
Greenpoint: Greenpoint’s industrial spaces are suitable for warehousing, manufacturing, and logistics, with properties often featuring flexible layouts. Its proximity to Long Island City and Queens also makes it an ideal location for logistics-focused businesses.
Brooklyn’s industrial rental rates vary based on location, property size, and features. Here’s an overview of typical rental costs:
Small Industrial Units (up to 2,500 sq. ft.): These spaces generally rent for $25 to $35 per square foot annually, particularly in areas like Bushwick and East Williamsburg.
Medium-sized Warehouses and Units (2,500 - 10,000 sq. ft.): Prices for medium-sized units range from $20 to $30 per square foot annually in Sunset Park and Greenpoint.
Large Warehouses and Distribution Centers (10,000+ sq. ft.): Larger facilities can be leased for $18 to $25 per square foot annually in areas like Red Hook and Sunset Park, where facilities are suited to high-volume logistics.
Brooklyn’s rental rates are typically higher than other boroughs due to its proximity to Manhattan and high demand for logistics and creative spaces. These rates may vary based on property features, parking availability, and lease terms.
When selecting industrial space in Brooklyn, there are several essential factors to consider:
Location and Accessibility: Consider proximity to highways, ports, or subway stations. Areas close to the BQE and other major routes can provide logistical advantages, especially for last-mile delivery and distribution.
Size and Layout of the Space: Choose a unit that meets your current operational needs while allowing for potential growth. High ceilings, open floor plans, and loading dock access may be essential for warehousing or production.
Infrastructure and Facilities: Depending on the nature of your operations, look for properties with adequate power supply, climate control, loading docks, and parking if needed.
Lease Terms and Flexibility: Industrial leases in Brooklyn may include specific terms for modifications, repairs, and tenant responsibilities. Fraser Bond can assist with negotiating flexible terms that align with your business objectives.
Zoning and Compliance: Ensure that the property’s zoning aligns with your business activities. Brooklyn’s industrial areas may have restrictions based on noise levels, emissions, or certain manufacturing processes.
Workforce Accessibility: Access to public transportation and proximity to residential areas are crucial if your operations require a significant workforce.
Fraser Bond offers tailored services for businesses and investors navigating Brooklyn’s industrial property market. Here’s how we can help:
Comprehensive Property Search: With a vast network of properties and up-to-date market knowledge, we match you with industrial spaces that meet your size, budget, and operational needs.
Market Analysis and Investment Advice: Fraser Bond provides in-depth market insights, analyzing current trends, rental pricing, and investment potential to help you make informed decisions.
Lease Negotiation and Legal Support: We assist with negotiating lease terms to ensure flexibility and favorable conditions, while also guiding clients through the lease agreement process.
Property Management Services: For clients requiring ongoing support, we offer property management, including tenant relations, maintenance, and regulatory compliance, to streamline property operations.
1. What is the typical lease length for industrial space in Brooklyn?
Lease terms for industrial properties in Brooklyn typically range from 3 to 10 years. Shorter terms may be available for smaller units or specific short-term projects.
2. Are there flexible lease options available for Brooklyn industrial space?
Yes, many property owners offer flexible leasing terms, particularly in shared spaces or smaller units. Fraser Bond can help you find properties with customizable lease options.
3. Are shared industrial spaces available in Brooklyn?
Yes, shared industrial spaces are common in areas like Industry City in Sunset Park, providing businesses with smaller sections of a larger facility, reducing costs and sharing amenities.
4. What additional costs are involved in leasing industrial space?
Additional costs may include property taxes, maintenance fees, utilities, and insurance. Reviewing these potential costs upfront is essential for budgeting accurately.
Brooklyn’s industrial property market offers diverse and flexible options for businesses needing warehousing, distribution, and light manufacturing space. With its proximity to Manhattan, excellent transport links, and thriving business environment, Brooklyn remains a popular choice for companies looking to expand in the NYC area. Fraser Bond is here to guide you through every step of the leasing process, from identifying the ideal property to securing favorable lease terms. Contact us today to start your search for industrial space in Brooklyn.
