News Summary
Prologis, the world’s largest industrial developer, is expanding in New York City with a significant new office lease in Manhattan and a strategic acquisition in Brooklyn. The new office will triple its space to approximately 23,000 square feet, enhancing operational capabilities. The company has also purchased a 10-acre property in Greenpoint for $122 million, aiming to develop logistics facilities and support the Blue Highways initiative. Prologis’s proactive expansion is in response to increasing demand for industrial real estate in a competitive market.
New York – Prologis, the world’s largest industrial developer, is significantly expanding its presence in New York City with a major office lease and a strategic acquisition in Brooklyn. These moves signal the company’s commitment to establishing a stronger foothold in one of the most competitive real estate markets in the world.
In Manhattan, Prologis has secured a new office lease that triples its existing space from 6,900 square feet to approximately 23,000 square feet at SL Green Realty Corp.’s 461 Fifth Avenue. This expansion, which takes place across two floors, involves the subleasing of the space from a current tenant who is vacating the premises. Cushman & Wakefield facilitated the lease negotiations, while SL Green was represented by its in-house team.
This lease renewal and expansion are seen as a strategic move by Prologis, aiming to enhance operational capabilities and support its global employee network. The new office will serve as a vital hub for international collaboration, crucial for the company’s long-term growth in New York City.
In a significant development for its operations in Brooklyn, Prologis has purchased a 10-acre property located at 440 Kingsland Ave. in Greenpoint from ExxonMobil for approximately $122 million. The property is strategically positioned near Newtown Creek on the Greenpoint waterfront. Prologis is actively assessing potential uses for the site, including the development of a logistics facility, vehicle storage options, or contributions to the Blue Highways initiative. This initiative focuses on enhancing freight transportation by utilizing the local waterways.
This acquisition aligns with the growing interest in the Blue Highways initiative from major industrial companies, including not only Prologis but also UPS. A senior vice president at Prologis indicated that this strategic purchase aims to meet the surging demand for high-quality logistics real estate, a trend that has been increasingly evident in the New York market.
Prologis has a history of making substantial investments in New York’s industrial real estate sector. In addition to the recent acquisition in Brooklyn, the company purchased a site at 48-00 Grand Ave. in Maspeth for $51 million in 2020 and completed a notable $3.1 billion acquisition of nearly 14 million square feet of properties from Blackstone last year. These actions underscore Prologis’s focus on expanding its footprint amid a booming demand for industrial spaces.
According to the latest data, industrial real estate demand in New York continues to outpace supply, with the vacancy rate in the outer boroughs reaching 5.1% for the third quarter of 2024. This marks the first increase above 5% since 2020, highlighting the tightening market and increasing competition among developers.
In addition to its recent acquisitions, Prologis is preparing to file plans for over 500,000 square feet of warehouse space at 12-18 38th Avenue in Long Island City. This initiative comes at a crucial time, as regulatory changes are on the horizon that could impact last-mile construction projects. By filing plans now, Prologis aims to sidestep potential additional regulatory burdens that may be implemented in the future.
The Adams administration is currently deliberating zoning amendments that would require special permits for last-mile facilities exceeding 50,000 square feet. Prologis’s proactive measures could position the company advantageously, enabling it to remain competitive in the rapidly evolving industrial landscape of New York City.
Prologis has also established a significant partnership with Amazon, leasing space to the company across at least 19 different markets. This relationship highlights the company’s strategic approach to meeting the logistical needs of high-demand clients while facilitating its own growth in the industry.
Deeper Dive: News & Info About This Topic
- Commercial Observer
- Wikipedia: Industrial Real Estate
- Crain’s New York
- Google Search: Prologis New York City
- Connect CRE
- Google Scholar: Prologis expansion New York
- Prologis Press Release
- Encyclopedia Britannica: Logistics
- The Real Deal
- Google News: Prologis Brooklyn acquisition
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
