Influx Of Warehouse Projects Could Lead Top Overbuilding On LI: Report

LONG ISLAND, NY — The spike in the number of proposed warehouse projects — already under construction or coming down the pike — will most likely go over storage needs on Long Island, Newsday reported.

In a new report by the economic development firm Camoin Associates, the warehousing industry’s vacancy rate has been projected to increase from 2.4 percent in 2021 to between 6 percent and over 9 percent by 2027 in Suffolk County, if most of the projects go through as planned, according to the outlet.

The Brookhaven Town Industrial Development Agency ordered the study after receiving five applications for tax breaks from developers, which would result in about 2 million square feet of warehouses in the town, or 25% of the total additional warehouse space being proposed island-wide, Newsday reported.

Camoin analyst John Walker told Newsday the firm sees the potential for "overbuilding.”

“The potential for an upcoming recession could definitely drop back demand [for warehouse space] and the extent to which interest rates go up could make some of these projects no longer feasible,” he added.

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