November 10, 2017

UPS in NYC

UPS will be delivering more than ever to New York City.with the delivery giant signing triple-net leases for space in both brooklyn and queens  , New York City is poised to receive even better delivery service than before.

 

Spanning a total of 1.7 million square feet between the two locations, UPS’s footprint in New York City stretch from Red Hook in Brooklyn to Maspeth in Queens. Both locations are ripe for industrial development, with the Red Hook space giving UPS 12 acres with easy access to the rest of New York City.

 

The vast Red Hook space that UPS has leased.

 

We’re excited to see UPS sign these deals as it will mean greater access to New York City residents -- and dare we hope -- even faster deliveries. With Amazon and Zappos using UPS for the majority of their shipping needs, we’re wondering what it will mean for the online retailers to have their delivery service so centrally located.

 

Since the space at both locations offers UPS the opportunity to reconfigure the area to their needs, we would imagine that we’ll see streamlined, efficient receiving and distributing centers that will make New Yorkers thrilled.

 

With both locations offering UPS the advantage of being close to over 8 million residents, we would imagine that UPS is eager to move in and set up the space to their specifications.

 

The term of the leases wasn’t available, but we would expect that UPS will be in New York City for the foreseeable future. Their ability to integrate their delivery services with Amazon makes UPS a huge player that needs an equally large footprint.

 

The development of the land in Red Hook is especially interesting, as there were plans underway to revamp it as commercial office space until the developer sold the property after being unable to find a partner for the deal.

 

Now Red Hook is poised to become a distribution power-house, something of an echo of what Industry City used to be, before it was revamped into the dynamic office-development that it has been reimagined into.

 

The Red Hook site had been sold for $110 million in May, after being cobbled together from various landowners for $61 million. We’re expecting that the current owners will hold onto the property with a tenant like UPS in place.

 

Maspeth in Queens is also an interesting deal, as it contains 475,000 square feet of warehouse, that had been used by Duane Reed before they moved their operations to New Jersey.

 

As much as we love residential real estate, at Oxford we realize the vital importance of our business community to keep New York City the thriving metropolis that it is. The addition of investment by companies like UPS who will use and maintain vast areas of New York City as they provide services to our residents is an incredible asset to all of us who live here, and for those many people who these spaces will employ. We’re looking forward to following what UPS decides to do with all their newly leased space in New York City!

 

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