E-Commerce Drives Demand for Urban Air Cargo Development in NYC

In this thought leadership piece, Triangle Equities’ Director of Capital Markets, Josh Weingarten, examines the rapid rise in demand for urban industrial and air cargo facilities driven by e-commerce growth. With online sales fueling a need for 1 million square feet of new industrial space for every $1 billion increase in e-commerce revenue, industrial rents in key borough markets like western Brooklyn and Queens have surged. High-profile transactions—such as FedEx’s warehouse sale in Maspeth at nearly $750 per square foot—demonstrate intense competition for prime logistics infrastructure close to customers.

Given land scarcity and regulatory challenges in New York City, Weingarten argues that urban proximity is now a necessity, not a luxury, for retailers and manufacturers pursuing next-day and same-day delivery capabilities. This trend is especially evident in Queens, home to 2.3 million residents and critical air freight operations at JFK International Airport.

Triangle Equities is actively responding to this market shift through its Terminal Logistics Center, a first-of-its-kind, 300,000-square-foot multi-story warehouse located minutes from JFK. As freight volumes through New York are projected to grow by 50% over the next two decades, projects like Terminal Logistics Center underscore the vital role of developer and public sector collaboration in modernizing the city’s logistics network and bolstering economic resilience.