Staten Island's industrial market is somewhat
limited, especially as compared to Brooklyn, Queens, or the neighboring counties in New Jersey. The Island has only about 3.7 million sf of industrial inventory in comparison to Brooklyn with about 69 million sf, and Queens with 65 million sf. Almost all (97%) of Staten Island's inventory is utilized as warehouse space, with the remainder used as flex space. The limited supply of buildings is evidenced by the 2006 vacancy rate of 3.4%.
While bearing a Staten Island address, the Site is strategically located adjacent to New Jersey, the nation's third largest industrial market. Because of the Site's critical connections to New Jersey's
infrastructure and commerce, the majority of the market analyses will focus on the impact of the
Central and Northern New Jersey markets on the Site.
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 Boosted by a steady demand for warehouse/distribution product, the Garden State remained a prime destination for a variety of businesses
coveting a central location and solid infrastructure. Driven by a surge of imports from Asian markets, a 10.1% increase in total cargo moving through the PONYNJ during the first half of the year strengthened an already
expanding Port Region extending from Exit 10 to Exit 15 of the New Jersey Turnpike. Similar to 2005, available warehouse product became more abundant in Central New Jersey while tightening up in the northern region. Due to slow lease-up of new construction and several large new vacancies in Middlesex County, available product swelled by more than 6.3 million sf in Central New Jersey.
In contrast, a 5.8-million sf drop in available space was recorded in Northern New Jersey primarily
resulting from a tightening Meadowlands and Port regions. |
