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Spotlight on Maspeth: Industrial Property Values Continue to Surge
  • By Emily Davenport
  • /
  • Wednesday, June 7th, 2017
  • /
  • 03:48 PM UTC

By Thomas A. Donovan, Vice Chairman, Cushman & Wakefield

Recent zoning initiatives in Williamsburg, Greenpoint and Long Island City have drastically reduced the supply of industrial properties due to re-development/conversion for alternative uses. This has caused industrial pricing to soar in Maspeth; rental rates previously ranging from $10-14 per square foot have now surged to as high as $25 in some locations. Sale prices, which 5-7 years ago ranged from $125-150 per square foot, have now reached as high as $400 per square foot. 1940 Flushing Avenue recently sold to a local user or $418 per square foot.

Originally chartered in 1642 by Dutch settlers, the name “Maspeth” was derived from the Mespeatches Indians.  Although Maspeth has a large industrial presence, it has a population of approximately 35,000 people and consists mainly of 1 and 2 family homes with a limited number of sparse apartment buildings. It benefits from direct access to the Long Island Expressway and Brooklyn-Queens Expressway with proximity to Manhattan; it is located within roughly 5 miles from the Queens-Midtown Tunnel.

Grand Avenue is the local retail corridor which features locally owned small businesses as well as national retailers including Chase Bank, CVS, McDonald’s, and Dunkin’ Donuts. At the west end of town lies The Grand Avenue Depot, a 4-story bus depot built in 2008 for the MTA. This modern, 600,000 square foot environmentally friendly facility was the first of its kind for the New York City Transit Authority.

Current notable developments in progress in the neighborhood include: 41-06 57th Avenue, a 2-story, 362,0000 SF (approx.) warehouse/distribution center with parking, and 54-08 74th Street, a 4-story commercial/office building totaling 19,000 SF (approx.). Vacant land in the area has been recently trading for roughly $50 per buildable square foot, as of right.

Maspeth is viewed as a solid industrial geography with quick access to all five boroughs, two major airports, Westchester and Nassau Counties.  With the diminishing supply of industrial properties in surrounding neighborhoods, property values in this sector continue to surge.