Tesla has made a significant move to expand its presence in New York, signing a lease to transform a 150,000 square foot industrial building in Queens into its largest Service Center in North America.
According to a report from the Business Journal, the property at 30-02 Whitestone Expressway in College Point, Queens, was previously home to various retail outlets, including a Toys R Us, Party City, and cinemas. Initially, plans were in place to demolish the existing structure, but when the prospect of leasing to Tesla became feasible, the property owner, Triangle Equities, decided to retain and renovate the property instead.
The renovations are projected to cost around $8 million.
Construction on the renovations is expected to start in early 2025, and when complete the new two storey 150,000 square foot facility will feature approximately 775 parking spaces, more than enough parking for the facility to also serve as a major distribution center on the East Coast.
The financial terms of the lease agreement between Tesla and Triangle Equities have not been publicly shared. However, industry reports indicate that the average industrial rental rate in Queens, hovers around US$34 per square foot, suggesting an annual lease cost of around US$5 million.
While this will be Tesla’s largest Service Center in North America, Vancouver, BC holds on to the title of largest purpose-built Service Center in North America. Tesla is planning to build a 120,000 square foot facility in Vancouver’s Strathcona neighbourhood. Construction was expected to start in Q1 2024, but has been delayed, likely also pushing back the opening date, which was originally scheduled for the first quarter of 2026.
