Executive Briefings

In New York City, Warehouses Have Nowhere to Go But Up

In New York, an insatiable demand for warehouse space is colliding with a chronic land shortage. The only place for property developers to go is up.

At least two different development teams have unveiled designs for multistory warehouse projects, one in Brooklyn and the other in the Bronx, that would be the first of their kind in New York and among the first in the U.S.

Next year, Goldman Sachs Group Inc. and its operating partner, developer Dov Hertz, expect to begin building a three-story, 370,000 square-foot warehouse in the Red Hook section of Brooklyn, with truck ramps to the second floor and elevators that can hold a forklift going to the third floor.

Meanwhile, a joint venture of Innovo Property Group and Square Mile Capital Management LLC is planning a two-story, 840,000 square-foot warehouse on the site of the former Whitestone Multiplex Cinemas in the Bronx.

There are plenty of old multistory warehouses in New York City that aren’t modernized, but new warehouse development for decades has been a horizontal affair because it is less costly. And most of that new development has taken place in New Jersey.

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At least two different development teams have unveiled designs for multistory warehouse projects, one in Brooklyn and the other in the Bronx, that would be the first of their kind in New York and among the first in the U.S.

Next year, Goldman Sachs Group Inc. and its operating partner, developer Dov Hertz, expect to begin building a three-story, 370,000 square-foot warehouse in the Red Hook section of Brooklyn, with truck ramps to the second floor and elevators that can hold a forklift going to the third floor.

Meanwhile, a joint venture of Innovo Property Group and Square Mile Capital Management LLC is planning a two-story, 840,000 square-foot warehouse on the site of the former Whitestone Multiplex Cinemas in the Bronx.

There are plenty of old multistory warehouses in New York City that aren’t modernized, but new warehouse development for decades has been a horizontal affair because it is less costly. And most of that new development has taken place in New Jersey.

Read full article