Long Island

The rapid spread of COVID-19, and the public health measures taken to reduce its deadly impacts, have caused significant disruptions to global economic markets. Due to widespread business closures in America’s largest urban markets, and uncertainty over the duration and recovery of the pandemic, commercial real estate markets will face challenges in the coming years.

Jack Dorsey made headlines when he announced that both his companies, Twitter and Square, would allow employees to work from home permanently and other companies are considering similar plans. Jim Underhill, the CEO of Cresa, joined Cheddar to discuss.

Despite the slow in leasing activity, CEO Jim Underhill expects to see a surge in deals closing in the second half of this year.

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.