ReadySpaces Signs 90K-SF Lease for First NYC Location

ReadySpaces, a provider of shared warehousing, office space and logistics space for small businesses, has secured a 90,000-square-foot lease at 59-00 Decatur Street in Ridgewood, New York. The lease has a 10-year term.

This is ReadySpaces’ first location in New York City. The company, which was founded in 2013, has 24 locations across the US and Canada, with three more scheduled to open in 2022. Each property provides storage and industrial workspaces between 250 and 5,000 square feet and collaborative workspaces.

The firm’s new location on Decatur Street features several freight elevators and loading docks as well as on-site parking. It is also conveniently located near the L and M subway lines as well as the East New York and Forest Hill Long Island Railroad stations.

ReadySpaces serves a unique segment of the market—tenants with both industrial needs and office needs. It is a new iteration of traditional co-working, but it has the potential to be as popular. Post-pandemic, traditional co-working operators have been growing in an unlikely setting, malls. Earlier this fall, Saks owner Hudson’s Bay announced that it will partner with WeWork to open SaksWorks co-working spaces in existing department store footprints. The deal will see SaksWorks move into several Saks locations and some that were previously occupied by Lord & Taylor.

JLL research from 2018 examined 75 co-working spaces in more than one million square feet of retail space and noted that 21.3% of those locations were in malls.

Although the NYC office market struggled during the pandemic, it continues to improve. Several major office owners are seeing some demand return to the market. Office owner LeFrak completed five lease transactions totaling 100,000 square feet at 40 West 57th Street in New York City’s Plaza District. And, at 1166 Avenue of the Americas, a property owned by Edward J. Minskoff Equities Inc., William Blair completed a lease extension and expansion totaling 80,000 square feet, nearly doubling its current footprint at the property.

The industrial market has performed better, although New York City has a limited supply. At the beginning of the year, New York City industrial leasing activity totaled 7.2 million square feet, down year-over-year 17.8%, despite the pandemic, according to research from CBRE. However, new supply is coming to the market. There is nearly 9 million square feet of new industrial product in the pipeline, with 2.1 million square feet currently under construction, a total of nine properties. Nearly all of these properties are warehouse and distribution spaces. There are an additional 14 properties in the construction pipeline, adding more class-A space to the market.

Colliers Senior managing director Richard M. Warshauer and EVP Mike Davis represented the tenant in the transaction. David Junik was the lead broker on the deal, working together with Steve Nadel, both partners at Pinnacle Realty of New York. They represented the landlord in the transaction.