While the pandemic might have accelerated growth for many industrial tenants, the challenge for investors in the sector will now be twofold: navigating an increasingly competitive market for industrial properties and analyzing which emerging classes will have the most staying power after COVID.
Of the recent industrial uses to emerge, last-mile delivery is the most recognized, perhaps because of the high-profile credit tenants associated with it. As new last-mile projects are built and stabilized, the competition to purchase them will be unprecedented. Due to zoning as well as the sheer acreage necessary to build last-mile delivery centers in New York City, there are a relatively small number of sites suitable for this type of development.
While e-commerce growth shows no signs of slowing down and will fuel demand to occupy these centers, the supply in NYC will eventually…
