NYC’s Industrial Market Poised to Weather the Coronavirus Storm
As the last few weeks have made clear, it’s still too early to make accurate forecasts in the face of the evolving Covid-19 pandemic. However, there is good reason to believe that the city’s industrial sector is uniquely positioned to weather the coronavirus disruption. Many industrial and warehousing businesses enjoy ‘essential services’ status and are allowed to operate in spite of Governor Cuomo’s recent business shutdown. These include warehousing, distribution, logistics and fulfillment, the manufacture of food, medical and other ‘essential’ goods, telecommunications and data centers, auto repair, select construction sites and construction supply, skilled trades including electricians and plumbers, business storage, mail and shipping services, trash, recycling and building repair, maintenance, security and disinfection services. Furthermore, as a March report by Prologis points out, the logistics sector at large is positioned to handle inventory supply and demand disruptions due to standard long-term occupancy contracts, which buffer cash flows from short term disruptions, and the ability to address shortages by shifting to more regional supply chains in the future.