New York City, NY Industrial Market Report Q3 2026

Cap Rates Expand for 18 Quarters, Yet Completions Fall 52%

Demand

New York City absorbed 125K SF in Q3 2026, against -1.23M SF in the same quarter last year. Vacancy is 7.7%, 48 bps looser than Q3 2025. Passaic County is the tightest submarket at 5.1% vacancy; Manhattan leads rent growth at +0.5%. Trailing-12-month absorption of 228K SF compares with -784K SF a year earlier. Asking rent of $22.90/SF is down 0.2% year over year and within 1% of the Q3 2025 peak of $22.95/SF.

Supply

New York City delivered 52K SF in Q3 and 3.84M SF over the trailing twelve months (-52% versus the prior TTM period). Space under construction equals 0.4% of inventory, concentrated in Hudson County at 1.5% of its stock. Annual deliveries peaked at 6.61M SF in 2000. Q3 deliveries were less than half of last year’s 1.10M SF.

Investment Market

New York City recorded $3.0B in sales over the trailing twelve months, -16% against the prior TTM period; Q3 accounted for $595M. The high-water mark in this series is $5.9B in 2021.

New York City cap rates average 6.21%, up for 18 straight quarters. Pricing sits at $393/SF, higher for 16 consecutive years. The cap rate is 100 bps above the Q1 2022 low of 5.21%. Price per SF is at a record.