Long Island Office Market
Strong first quarter absorption offset the negative 172,158 square feet of absorption during the second quarter of 2024. The negative quarterly absorption coincided with a heightened vacancy rate of 12.5%, a 20-year high. Total available space increased 80,098 square feet during the second quarter of 2024. The region’s vacancy rate mirrored the slight increase as it rose to 12.5%. During the second quarter of 2024, the Long Island average asking rent increased 1.3% to $29.21. The second quarter 2024 average asking rent remains 8.2% above the long-term average of $26.99. The second quarter of 2024 continued to see an elevated spread between sublet and direct asking rates. The average sublease asking rate increased 21.9% year over year.
Long Island Industrial Market
Long Island total vacancy increased to 5.1% in the second quarter of 2024, largely driven by a delivery of six properties totaling 1,051,790 square feet. In the second quarter of 2024, leasing activity for industrial space decreased 36.0% to 661,473 square feet, its lowest level over the past five years. Despite a marginal year-over-year decrease, average asking rents remain elevated at $16.88/SF in the second quarter of 2024. The second quarter recorded a 39.7% increase in asking rents compared to the onset of the pandemic. During the first half of 2024, Long Island Class A leasing activity exceeded the first half of 2023 by 49.6%. Despite this, Class A leasing dropped to 8.2% of the total industrial leasing for 2024, the lowest rate since 2021.