Long Island

As global companies realize the importance of having a unified approach to their real estate demands, the need to understand local market practices and business traditions is greater than ever.

Jim Underhill arguing that people are not going back—at least, not to the office life we had, with hundreds or thousands of employees showing up at the same building every day, often to be squeezed into a densely packed, open-plan office. “Call it a de-consolidation of space, rather than having everyone come into one massive office in the cities, though they will remain the hub,” he told Quartz.

The COVID-19 Global Pandemic brought an abrupt halt to what had been robust leasing activity in Nassau and Suffolk Counties. Tenant’s new focus became the preservation of capital through expense and workforce reduction.

The Long Island market continues at a slow but steady pace, improving over each previous quarter and remaining healthy. Availability in both sectors dipped slightly and predictably rents inched up a bit. The first (1st) quarter experienced several major transactions across every discipline; retail, office and industrial. Newsday signed the largest new office lease of the quarter (84k SF). The industrial market has outpaced the other sectors with substantial increases in rent and increases in the cost per square foot to purchase. A large contributor to the increase is due to the migration of tenants/buyers from Long Island City and NYC boroughs acquiring Long Island facilities at “discounted” rents and lower acquisition costs.