Warehouses Transform NYC Neighborhoods as E-Commerce Booms

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Warehouses Transform NYC Neighborhoods as E-Commerce Booms

But the rise of warehouses has also sparked significant opposition. While they provide jobs and can reduce residential property taxes by contributing to the local tax base, people across the region say the larger hubs will foster a constant flow of semi-trucks and delivery vans that can reduce pollution and traffic congestion. will spoil it.

He has also condoled the loss of open land for mega facilities. In recent months, residents of the southern New Jersey township of Pilesgrove, across the Delaware River from Wilmington, Del., protested plans for a 1.6-million-square-foot warehouse—larger than Ellis Island—on the former ranch.

While Amazon, major retailers and logistics operators such as UPS, FedEx and DHL dominated the initial wave of warehouse deals at the start of the pandemic, interest is now coming from smaller businesses seeking greater control over their supply chains amid a global bottleneck in movement. want. for good

“I’ve been doing it for 30-something-odd years, and I’ve never seen it,” said JLL vice chairman Rob Koser, who oversees the company’s industrial division in the Northeast. “For tenants to secure space, they have to negotiate leases with many landlords in places that are not even available. It’s crazy what they have to do.”

The rising cost of leasing facilities has frustrated some small business owners who can’t compete with retail and logistics giants, as well as newcomers like Tesla and Rivian, which have built showrooms and service centers for their electric vehicles in Brooklyn warehouses. have opened. For example, lease prices for warehouses in the Bronx have jumped 22 percent since the pandemic began.

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Warehouse jobs are still a fraction of New York City’s labor force, but companies are on a recruitment spree. Since 2019, the number of warehouse jobs doubled to 16,500 positions at the end of 2021. New employees at Amazon earn about $18 an hour and receive a starting bonus of up to $3,000. But the company is also fighting workers at some of its warehouses, including Staten Island, who are trying to unionize to improve working conditions.

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