flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

New York City’s largest industrial building is nearing completion

Industrial Facilities

New York City’s largest industrial building is nearing completion

The multistory facility is arriving at a time when space remains at a premium.


By John Caulfield, Senior Editor | December 21, 2022
A rendering of the 1.3-million-sf Logistics Center in The Bronx, N.Y.
The 1.3-million-sf Bronx Logistics Center in New York City is scheduled for completion in the second quarter of 2023. Rendering credit: Turnbridge Equities

Despite a significant increase to existing building stock in 2022, the national vacancy rate for industrial space in the U.S. fell below 4 percent.

At the end of last November, there were 742.3 million sf of industrial space under construction, representing 4 percent of total existing inventory, according to Commercial Edge’s National Industrial Report, which it released on December 21. Dallas and Phoenix are the two top construction markets for this sector. And nationwide, another 684.5 million sf of industrial space are in their planning stages.

However, new construction is barely keeping up with leasing demand, as the vacancy rate in the 30 largest industrial markets tracked by Commercial Edge stood at 3.8 percent at the end of November. The Report asserts that the biggest challenge for developers is finding suitable land in port markets like California’s Inland Empire, Los Angeles, and New Jersey. But even non-port markets like Nashville and Columbus, Ohio, are experiencing extremely low vacancy rates.

The top 30 markets, through November, recorded aggregate property sales of $78.8 billion. While sales have cooled a bit nationally, the average sales price of $116 per sf in the first two months of the fourth quarter was still nearly 18 percent higher than the same period in 2021.

 

Commercial Edge's ranking of top industrial construction markets
More than 742 million sf of industrial space were under construction as of the end of November. Chart: Commercial Edge National Industrial Report.
 

A huge building for a tight New York market

With these market dynamics as a backdrop, the real estate investment and development firm Turnbridge Equities announced earlier this month the topping out of Bronx Logistics Center, the largest industrial development in New York City.

Nestled in the borough’s Hunts Point industrial area, this Class A 1.3-million-sf, multilevel complex on 14.2 acres (assembled from five properties) consists of 585,000 sf of total warehouse space with 32-ft ceiling heights and 40- by 40-ft column spacing, 730,000 sf of parking space (25 percent of which is electric-vehicle ready with charging stations), 48 loading docks, and 72 drive-in doors.

 

A drone image of the Bronx Logistics Center under construction
An aerial view of the under-construction Bronx Logistics Centers shows its access to several transportation arteries. Image: Arco Design/Build

The building’s rooftop solar panels will generate three megawatts of energy. The site includes a CSX freight railway spur, providing tenants with potential direct rail access, and is located less than two miles from the Hunts Point Food Distribution Center, which generates over $3 billion of annual economic activity.

When it’s completed in the second quarter of 2023, the Bronx Logistics Center will serve the entire New York metropolitan area and beyond. It is a five-minute drive from Manhattan’s Upper West Side, and has convenient access to Interstates 95, 87, 295, and 278.

Arco Design/Build Industrial is the designer and general contractor on this project. “We provided a high level of risk mitigation for our client by locking in construction costs prior to going through all of the design documents,” Arco states on its website. Turnbridge Equities, which owns the building, and the project’s equity partner Dune Real Estate Partners, retained JLL as the leasing agent. (As of mid December, no tenants had committed to leasing space.)

While Turnbridge didn’t release the cost of this project, The Real Deal reported that Turnbridge paid $174 million to acquire the land in 2018 and more recently secured $381 million in construction financing and debt refinancing from KKR.

Once completed, the Bronx Logistics Center’s size will exceed the 1-million-sf industrial development of Innova Property Group and Square Mile Capital Management. The borough’s industrial inventory accounts for about 17 million sf of space. The Bronx Times reports that only 1.6 percent of New York City’s industrial space is available for lease.

Related Stories

Industrial Facilities | Mar 6, 2023

The largest planned logistics and business park in North America gets under way in Southern California

The $25 billion World Logistics Center will boost the supply chain capabilities of Southern California and will serve as a distribution center for destinations across the continent.

Intelligent Lighting | Feb 13, 2023

Exploring intelligent lighting usage in healthcare, commercial facilities

SSR's Todd Herrmann, PE, LEEP AP, explains intelligent lighting's potential use cases in healthcare facilities and more.

Giants 400 | Feb 9, 2023

New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel

See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.   

Giants 400 | Feb 6, 2023

2022 Telecommunications Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. telecommunications facility sector

AECOM, Alfa Tech, Kraus-Anderson, and Stantec head BD+C's rankings of the nation's largest telecommunications facility sector architecture, engineering, and construction firms, as reported in the 2022 Giants 400 Report.

Adaptive Reuse | Dec 21, 2022

University of Pittsburgh reinvents century-old Model-T building as a life sciences research facility

After opening earlier this year, The Assembly recently achieved LEED Gold certification, aligning with the school’s and community’s larger sustainability efforts.

Virtual Reality | Dec 12, 2022

Supplementing workplace connections through digital knowledge networks

Zachary Wassenberg of Burns & McDonnell breaks down three applications for digital knowledge networks: training, libraries, and instructions.

Industrial Facilities | Nov 16, 2022

Industrial building sector construction, while healthy, might also be flattening

For all the hoopla about the ecommerce boom and “last mile” order fulfillment driving demand for more warehouse and manufacturing space, construction of industrial buildings actually declined over the past five years, albeit marginally by 2.1% to $27.3 billion in 2022, according to estimates by IBIS World. Still, construction in this sector remains buzzy.

Giants 400 | Sep 7, 2022

Top 110 Industrial Sector Contractors + CM Firms for 2022

Clayco, Arco Construction, Ryan Companies, and STO Building Group top the ranking of the nation's largest industrial facility sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Sep 7, 2022

Top 90 Industrial Sector Engineering + EA Firms for 2022

Jacobs, Integrated Project Services, Burns & McDonnell, and Kimley-Horn head the ranking of the nation's largest industrial facility sector engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Sep 7, 2022

Top 95 Industrial Sector Architecture + AE Firms for 2022

Ware Malcomb, Stantec, Haskell, and Macgregor Associates Architects top the ranking of the nation's largest industrial facility sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.

boombox1 - default
boombox2 -
native1 -

More In Category



Giants 400

New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel

See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.   


halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 



Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: