Long Island Office Market
| Average Asking Rent (Price/SF) | $28.40 |
| Vacancy Rate (%) | 9.7% |
| Net Absorption (SF) | 473,435 |
Following two full years of rising availability, the Long Island commercial office market has possibly reached an inflection point as the region continues to contend with the ever-changing impact of the pandemic. Due to increased leasing velocity in the final quarter of 2021, vacant inventory fell 80 basis points from the prior quarter, to finish at 9.7%. Although the emergence of a new Omicron variant is likely to delay reboarding plans for many companies, Long Island recorded 473,435 square feet of positive net absorption in the fourth quarter of 2021, bringing the annual total up to positive 250,962 square feet. This is a dramatic improvement from 2020 when total net absorption was negative 1.32 million square feet. Available sublet space fell 0.3% quarter-over-quarter and now represents 1.5% of overall inventory. With a dense population of qualified workers and growing demand for modern amenities, Long Island office fundamentals have remained stable amid a period of economic uncertainty. As a comparison, vacancy rates in neighboring suburban Tri-State markets were hovering slightly above 20% upon the conclusion of 2021. Median asking rents for Long Island office space were recorded at $28.40/SF in the fourth quarter of 2021, a 6.1% increase year-over-year. Overall rental averages have accelerated in the second half of 2021 due to higher-priced Class A space entering the market, in addition to a decrease in sublet availability.
Download Long Island Office Market Report 4Q21Long Island Industrial Market
| Average Asking Rent (Price/SF) | $14.72 |
| Vacancy Rate (%) | 3.5% |
| Net Absorption (SF) | 502,325 |
The Long Island industrial market concluded 2021 on a wave of positive momentum, with vacancy levels falling 30 basis points quarter-over-quarter to 3.5% during the last three months of the year. Demand for industrial space has shown no signs of slowing down. Fueled by pandemic-driven ecommerce activity, developers have brought new spaces to the market, which are necessary to accommodate the growing presence of logistics users. Long Island recorded a total of 2.2 million square feet of positive net absorption for 2021, which is the largest annual total since 2013. Strong growth of rental rates continued due to the reduced levels of available space. Average asking rents were up 14.5% annually, finishing at $14.72/SF.
Download Long Island Industrial Market Report 4Q21