Brooklyn transactions slack off, Queens holds steady, report says

Real Estate Weekly, Nov 10, 1993

The Greiner-Maltz Company Report on industrial real estate in Queens and Brooklyn for the third quarter of 1993 shows that in the past three months, 111 transactions were concluded, involving over 1.6 million square feet of industrial space. "That's a lot of business, especially when the general tone is that things are quiet," points out Richard Maltz, president of the company, which specializes in industrial and commercial real estate in Brooklyn, Queens, Nassau, and Suffolk Counties.

Conditions in Queens have remained fairly steady since the last quarter, and the availability rate is down to 12.97 percent, the report says, less than it has been since December 31, 1992. Most leasing and sales activity continues to take place in units that are smaller than 20,000 square feet, and only one transaction took place involving a unit over 75,000 square feet.

In Brooklyn, the real estate market has slackened. The number of completed transactions is down considerably since the last quarter, as is the number of new listings - which is a positive note. Since the amount of space that has been sold or leased has held steady, the report's conclusion is that the average size of deals is increasing. The overall availability rate is now 13.91 percent, higher than it has been since early 1992, but within the range it has held since 1990.

Mr. Maltz affirms that his survey reinforces the trends shown by employment figures, other economic analysis, and general perception: that manufacturing is diminishing in this area. There is a slow, steady increase in the number of large units (over 100,000 square feet) available in the two boroughs - currently 36 units are available out of a total of 211 in the inventory of all industrial buildings in Queens and Brooklyn.

"However," Maltz notes, "New York City is still the center of a vast, powerful economy. Thousands of businesses continue to thrive and grow here. While cycles change, so do opportunities. It is not the role of the real estate firm to deal with the fact that manufacturers have been moving to other areas, but rather to help businesses find the best space for their needs. We see first hand that many importers, distributors, assembly operations, and specialized firms are flourishing. Bio-tech and high-tech firms are finding fertile ground for success. And we know that there are many public agencies and private firms ready to help new and existing local businesses to grow and become more productive. With professional assistance and so much space available, users can select the most suitable, efficient locations to help their businesses run more profitably."