With the severe spectrum shortage in conventional cellular bands, millimeter wave (mmW) frequencies between 30 and 300 GHz have been attracting growing attention as a possible candidate for next-generation micro- and picocellular wireless networks. The mmW bands offer orders of magnitude greater spectrum than current cellular allocations and enable very high-dimensional antenna arrays for further gains via beamforming and spatial multiplexing. This paper uses recent real-world measurements at 28 and 73 GHz in New York City to derive detailed spatial statistical models of the channels and uses these models to provide a realistic assessment of mmW micro- and picocellular networks in a dense urban deployment. Statistical models are derived for key channel parameters including the path loss, number of spatial clusters, angular dispersion and outage. It is found that, even in highly non-line-of-sight environments, strong signals can be detected 100 m to 200 m from potential cell sites, potentially with multiple clusters to support spatial multiplexing. Moreover, a system simulation based on the models predicts that mmW systems can offer an order of magnitude increase in capacity over current state-of-the-art 4G cellular networks with no increase in cell density from current urban deployments.