Long Island Office Market
The Long Island vacancy rate remains elevated, totaling 11.7% during the first quarter of 2025. This comes as the market recorded 131,331 square feet of absorption during the quarter. Total available space decreased 208,860 square feet in the first quarter of 2025, bringing the availability rate to 13.1%, the market’s lowest level since the second quarter of 2022. Asking rents increased $1.15/SF to $29.59/SF during the first quarter of 2025, the market’s second-highest quarterly level over the past twenty years. First quarter asking rents increased to 5.4% above the long-term average of $28.07/SF. Direct asking rates were higher than sublease rates in the first quarter of 2025 as direct rates increased 3.9% from the previous quarter to $29.58/SF, while average sublease rates declined 1.4% to $28.52/SF.
Long Island Industrial Market
During the first quarter of 2025, Long Island industrial vacancy increased 30 basis points from the previous quarter to 6.0%, the market’s highest level since 2010. Long Island recorded average industrial asking rents of $16.31/SF during the first quarter of 2025, declining 2.0% from 2024. Despite this decline, 2025 asking rents remain 5.0% above the long-term average of $15.53. Long Island recorded 65,901 square feet of class A industrial leasing activity during the first quarter of 2025. Class A’s share of leasing activity remains elevated, accounting for 11.0% of transactions during the first quarter of 2025. In the first quarter of 2025, available sublease space increased 27.4% from the previous quarter to 1,230,603 square feet, the market’s highest level since 2007. Sublease space accounted for 9.1% of the total available space in Long Island.