Long Island Office Market
| Average Asking Rent (Price/SF) | $28.21 |
| Vacancy Rate (%) | 11.0% |
| Net Absorption (SF) | -166,073 |
Demand for office space on Long Island remained soft in the second quarter of 2021. Vacancy increased from 10.7% at the start of the year to 11.0% as disruptions related to COVID-19 continued to impact the market. Net absorption totaled negative 166,073 square feet with several large sublet additions in Suffolk County accounting for the increase in availability. Most notably, Allstate is looking to downsize and has put its 80,000-square-foot property along Veterans Memorial Highway in Hauppauge on the market for sublease. Total sublease availability increased by 226,466 square feet from the previous quarter and is now up to 1.1 million square feet, a 59.7% rise since the beginning of the pandemic. Despite the uncertainty of the past year, average asking rents grew 4.2% quarter over quarter to $28.21/SF. While the average asking rent remains secure, many landlords have become amenable to increasing concessions and it is expected that downward pressure on net-effective rents will continue to exist in the near-term.
Download Long Island Office Market Report 2Q21Long Island Industrial Market
| Average Asking Rent (Price/SF) | $13.85 |
| Vacancy Rate (%) | 4.4% |
| Net Absorption (SF) | 748,723 |
The Long Island industrial market remained tight during the second quarter of 2021, due to increased competition among tenants seeking logistics and distribution space. Overall vacancy decreased 40 basis points from the previous quarter, to finish at 4.4%. As a result, Long Island’s average asking rents grew to an all-time high of $13.85/SF. Although the pandemic has been responsible for many supply-chain disruptions, industrial market fundamentals have remained solid, with asking rents increasing 14.2% year-over-year. Consumer spending has made a dramatic shift towards online shopping during the pandemic, leading to increased demand from ecommerce companies and spurring developers to address the shortage of modern industrial facilities. At the conclusion of the second quarter, there was over 1.1 million square feet of new supply under construction.
Download Long Island Industrial Market Report 2Q21