Long Island Real Estate Market Reports

Long Island Office Market

While the office vacancy rate remained elevated at 11.5% in the second quarter, the market has declined 90 basis points from it’s twenty-year high in 2023. Through the first half of 2025, Long Island recorded 204,438 square feet of absorption. Total available space in the Long Island office market decreased 255,797 square feet in the second quarter of 2025, bringing the availability rate to 12.9%, the market’s lowest level since the second quarter of 2022. Asking rents increased $3.34/SF to $32.93/SF during the second quarter of 2025. The second quarter marked Long Island’s highest average asking rent over the past twenty years, increasing 16.5% above the long-term average of $28.27/SF. Direct rates exceeded sublease rates during the second quarter of 2025, a shift from the few years prior. Average direct rates increased $3.32/SF from the previous quarter to $33.00/SF, while average sublease rates increased $0.16/SF to $28.41/SF.

Long Island Industrial Market

During the first half of 2025, Long Island industrial vacancy increased 30 basis points from the fourth quarter of 2024 to 6.0%, the market’s highest level since 2010. Long Island’s average asking rent increased $0.48/SF from the previous quarter to $16.79/SF. 2025 asking rents have increased 0.8% year-over-year but remain shy of 2023’s high of $16.95/SF. Long Island recorded 121,101 square feet of Class A leasing activity during the first half of 2025, a 12.5% year-over-year decline from the first half of 2024. Class A leasing fell to 8.6% of total industrial leasing through the first half of 2025, Long Island’s lowest level since 2021. Available sublease space declined 32.3% from the previous quarter to 930,120 square feet due to strong subleasing activity during the quarter. Available sublease space remains elevated, exceeding the long-term average by 54.4%.