2Q 15. Long Island Market Report

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1 2Q 15 Long Island Market Report

2 Long Island Office 2Q 215

Long Island 2Q15 Office Office Report The Long Island office market ended the 2nd quarter 215 with an decreased vacancy rate of 8.2%. The vacancy rate was 8.4% at the end of the 1st quarter 215, 8.

3 Long Island 2Q15 Office Office Report The Long Island office market ended the 2nd quarter 215 with an decreased vacancy rate of 8.2%. The vacancy rate was 8.4% at the end of the 1st quarter 215, 8.2% at the end of the 4th quarter 214, and 8.1% at the end of the 3rd quarter 214. Net absorption for the overall Long Island office market was positive 456,763 SF in the 2nd quarter 215. That compares to positive 91,796 SF in the 1st quarter 215, negative 387,577 SF in the 4th quarter The Long 214, Island office negative market 488,427 SF in the 3rd quarter 214. ended the 1st quarter 215 During the 2nd quarter 215, with an four increased buildings vacancy totaling 85,352 SF were completed in the Long Island market area. rate This of compares 8.4%. The to vacancy 8 buildings rate totaling 355,45 SF that were completed in the 1st quarter was 8.2% 215, at 3 the buildings end of the totaling 4th 19,98 SF completed in the 4th quarter 214, and 13,2 quarter SF in 214, 4 buildings 8.% at completed the end in the 3rd quarter 214. There is 1,14,528 SF of office space of the under 3rd quarter, construction and 7.7% at the end of the 2nd quarter 215. at the end of the 2nd quarter The average quoted asking 214. rental rate for available office space, all classes, was $26.71 PSF at the end of the 2nd quarter 215 in the Long Island submarket. This represented a.2% decrease in quoted rental rates from the end of the 1st quarter 215, when rents were reported at $26.77 PSF. Tallying office building sales of 15, SF or larger, Long Island office sales figures fell during the 1st quarter 215 in terms of dollar volume when compared to the 4th quarter of 214. In the 1st quarter, 13 office transactions closed with a total volume of $189,625,753. The 13 buildings totaled 1,22,258 SF and the purchase price averaged $186 PSF. That compares to 18 transactions totaling $253,83,88 in the 4th quarter 214. The total square footage in the 4th quarter was 1,195,563 SF for an average price of $212 PSF. Trends for 2Q15 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Total office building sales activity in 215 was down compared to 214. In the same 3 month period in 214, the market posted 17 office sales transactions with a total volume of $326,87,. The purchase price averaged $265 PSF. Significant Lease Transactions: Tenant Building Size Submarket North Shore-LIJ Health System North Hills 252, SF Western Nassau Hillary Clinton Campaign Headquarters One Pierrepont Plaza 77,685 SF Downtown Brooklyn WeWork 77 Sands Street 75,228 SF Downtown Brooklyn N/A 1625 Forest Avenue 39, SF Staten Island Regus The Falchi Building 34,211 SF Northwest Queens

4 Market Overview Report - 2Q 215 Total Office Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau ,873,656 1,247,57 8.4% 141,12 $26.27 Central Queens 221 4,52, ,582 3.% 1,674 $32.92 Central Suffolk 1,31 9,676,94 81,31 8.3% (18,744) $19.88 Downtown Brooklyn ,418,28 1,637, % (98,177) $33.69 Eastern Nassau 56 13,614,568 1,526, % 24,84 $26.43 Eastern Suffolk 612 3,428, ,7 6.9% 26,186 $ ,2 North Brooklyn 67 1,17,287 1,475, % 178,784 $ ,165 Northeast Queens 637 1,61,68 338, % 27,529 $ ,425 Northern Nassau 22 1,426,788 12,43 8.4% 6,63 $22.4 Northwest Queens ,276,518 62,5 4.5% 586 $ , South Brooklyn 815 1,622, , % 4,543 $3.29 5,4 South Queens 327 5,545, , % (4,652) $28.2 Southeast Nassau 194 1,32,799 61, % 12,426 $23.37 Southern Nassau 542 5,563, , % 27,8 $26.6 Southwestern Suffolk 483 3,92, , % 15,928 $16.62 Staten Island 858 6,451,1 472, % 5,547 $ ,797 Western Nassau ,879,39 1,377, % 3,483 $3.38 Western Suffolk 1,264 23,742,162 2,325,7 9.8% 5,649 $ ,541 TOTALS 9, ,64,69 14,71, % 548,559 $ ,14,528 Construction Activity Markets Ranked by Under Construction SF Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Queens 7 95,425 43, % 21,21 129,346 Brooklyn 4 174, % 26,678 43,641 Suffolk 3 14,741.% 111,782 4,914 Staten Island 1 9,797.% 7,519 9,797 Nassau.% 2,42

5 Long Island Retail 2Q 215

Long Island 2Q15 Retail Retail Report The Long Island retail market ended the 2nd quarter 215 with a decreased vacancy rate of 3.8%. The vacancy rate was 4.% at the end of the 1st quarter 215, 4.

6 Long Island 2Q15 Retail Retail Report The Long Island retail market ended the 2nd quarter 215 with a decreased vacancy rate of 3.8%. The vacancy rate was 4.% at the end of the 1st quarter 215, 4.1% at the end of the 4th quarter 214, and 4.4% at the end of the 3rd quarter 214. Net absorption for the overall Long Island retail market was moderate with positive 494,338 SF absorbed in the 2nd quarter 215. That compares to positive 334,722 SF in the 1st quarter 215, positive 62,521 SF in the 4th quarter 214, and positive 684,824 SF in the 3rd quarter 214. During the 2nd quarter 215, 3 buildings totaling 29,2 SF were completed in the Long Island retail market. This compares to 5 buildings totaling 124,794 SF that were completed in the 1st quarter 215, 7 buildings totaling 56,738 SF completed in the 4th quarter 214, and 581,237 SF in 17 buildings completed in the 3rd quarter 214. There were 1,914,626 SF of retail space under construction at the end of the 2nd quarter 215. The average quoted asking rental rates for available retail space are up over previous quarters with quoted rents at $32.19 per SF per year at the end of the 2nd quarter 215 in the Long Island market area. That compares to $31.37 per SF in the 1st quarter 215, and $3.97 per SF at the end of the 3rd quarter 214. Tallying retail building sales of 15, SF or larger, Long Island retail sales figures rose during the 1st quarter 215 in terms of dollar volume compared to the 4th quarter of 214. In the 1st quarter, 26 retail transactions closed with a total volume of $235,21,. The 26 buildings totaled 686,53 SF and the average price per SF equated to $ per SF. That compares to 24 transactions totaling $184,523,538 in the 4th quarter 214. The total square footage in the 4th quarter was 575,579 SF for an average price per SF of $ Total retail center sales activity in 215 was down compared to 214. In the same 3 months of 214, the market posted 26 retail transactions with a total volume of $255,488,543. The price per SF averaged $ Trends for 2Q15 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Significant Lease Transactions: *Renewal Tenant Building Size Submarket Century 21 Deptartment Store Green Acres Mall 72,266 SF Southern Nassau Stew Leonard s Inc. Airport Plaza 6, SF Western Suffolk King Kullen 1235 Middle Country Rd.* 45,2 SF Central Suffolk Fairway Market Georgetowne Shopping Center 4, SF South Brooklyn Forever Fulton Street 4, SF Downtown Brooklyn

7 Market Overview Report - 2Q 215 Total Retail Submarket Statistics SUBMARKET # BLDGS. TOTAL GLA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau 1,71 14,749,955 76, % 2,72 $ ,5 Central Queens 1,612 12,757,87 447, % 45,35 $ ,785 Central Suffolk 2,246 25,428,74 1,128, % 76,745 $22.21 Downtown Brooklyn 514 4,975,42 224,97 4.9% 8,797 $ ,8 Eastern Nassau ,252, , % 53,976 $25.1 Eastern Suffolk 1,78 12,586, , % 51,927 $25.46 North Brooklyn 6,98 39,699,646 1,258,91 3.2% (27,899) $ ,854 Northeast Queens 2,579 21,227, ,661 3.% (33,627) $ ,846 Northern Nassau 469 2,838, , % 14,395 $38.17 Northwest Queens 1,316 11,95, , % 61,822 $ ,842 South Brooklyn 5,854 34,256,121 1,469, % 16,256 $ ,446 South Queens 2,148 15,999,679 84,312 5.% 66,543 $ ,154 Southeast Nassau 646 6,959,53 23, % 32,163 $26.75 Southern Nassau 1,666 15,17, , % 62,127 $ ,235 Southwestern Suffolk 1,113 11,192, , % 59,717 $19.8 Staten Island 2,31 17,143, , % 35,514 $ ,68 Western Nassau 918 8,64, , % 29,14 $35.5 Western Suffolk 2,511 24,523, ,54 3.8% 111,538 $ ,484 TOTALS 36,5 292,345,613 11,23, % 829,6 $ ,914,626 Construction Activity Markets Ranked by Under Construction SF Under Construction Inventory Average Bldg Size Market # Bldgs Total GLA Preleased SF Preleased % All Existing U/C Brooklyn 14 1,16,1 793, % 5,945 79,7 Queens , , % 7,979 26,646 Nassau 3 175, ,735 1.% 1,818 58,578 Staten Island 7 132,68 78, 58.8% 7,421 18,954 Suffolk 1 2,484 1, % 9,73 2,484

8 Long Island Industrial 2Q 215

Long Island 2Q15 Industrial Industrial Report The Long Island industrial market ended the 2 nd quarter 215 with an decreased vacancy rate of 4.4%. The vacancy rate was 4.

9 Long Island 2Q15 Industrial Industrial Report The Long Island industrial market ended the 2 nd quarter 215 with an decreased vacancy rate of 4.4%. The vacancy rate was 4.6% at the end of the 1 st quarter 215, 4.7% at the end of the 4 th quarter 214, and 5.% at the end of the 3 rd quarter 214. Net absorption for the overall Long Island industrial market was positive 58,42 SF in the 2 nd quarter 215. That compares to positive 211,153 SF in the 1 st quarter 215, positive 77,898 SF in the 4 th quarter 214, and negative (157,421) SF in the 3 rd quarter 214. During the 2 nd quarter 215, 32 buildings totaling 52, SF were completed in the Long Island market area. This compares to 3 buildings totaling 95,286 SF that were completed in the 1 st quarter 215, 1 building totaling 4, SF completed in the 4 th quarter 214, and 325,5 SF completed in 4 buildings in the 3 rd quarter 214. There were 48, SF of industrial space under construction at the end of the 2 nd quarter 215. The average quoted asking rental rates for available industrial space are up over previous quarters with quoted rents at $13.4 per SF per year at the end of the 2 nd quarter 215 in the Long Island market area. This represents a 1.1% increase in quoted rental rates from the end of the 1 st quarter 215, when rents were reported at $12.9 per SF. Tallying industrial building sales of 15, SF or larger, Long Island industrial sales figures fell during the 1 st quarter 215 in terms of dollar volume compared to the 4 th quarter of 214. In the 1 st quarter, 45 industrial transactions closed with a total volume of $356,11,25. The 45 buildings totaled 2,438,96 SF and the average price per SF equated to $146.6 per SF. That compares to 49 transactions totaling $574,911,92 in the 4 th quarter 214. The total square footage in the 4 th quarter was 2,783,73 SF for an average price per SF of $ Total industrial building sales activity in 215 is up compared to 214. In the first 3 months of 214, the market posted 52 industrial sales transactions with a total volume of $281,79,67. The price per SF averaged $ Trends for 2Q15 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Significant Lease Transactions: *Renewal Tenant Building Size Submarket InvaGen Pharmaceuticals Inc. 275 Carleton Ave. 26, SF Hauppauge Ind. L-3 Communications Narda Satellite Networks 435 Moreland Rd.* 149,87 SF Hauppauge Ind. Levitan Robbins Electrical Supply 13 Foster Ave. 142, SF South Brooklyn Ind. New York City Police Department Pearson Pl.* 87,36 SF Northwest Queens Ind. Wleding Metallurgy, Inc. 11 Plant Ave.* 81,38 SF Hauppauge Ind.

10 Market Overview Report - 2Q 215 Total Industrial Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau Ind ,36, , % (27,985) $12.11 Central Queens Ind. 67 2,79, , % 25,149 $14.93 Deer Park Ind ,28, , % 11,347 $7.97 East Farmingdale Ind ,984, , % 16,919 $9.96 Eastern Nassau Ind ,93,728 1,537, % (54,38) $1.63 Eastern Suffolk Ind ,867, , % 46,23 $8.91 Hauppauge Ind ,28,814 1,11, 4.2% 38,6 $8.61 North Brooklyn Ind. 3,93 6,377,48 2,54,65 4.1% (44,792) $2.65 North Central Suffolk Ind ,287,679 99,444 3.% 35,23 $11.34 Northeast Queens Ind ,995,63 219,27 1.8% 27,518 $17.74 Northern Nassau Ind. 16 2,519, , % 6,2 $1.82 Northwest Queens Ind. 1,438 34,225,624 1,197,67 3.5% 182,949 $16.31 Northwest Suffolk Ind ,357, , % 13,434 $13.53 Ronkonkoma/Bohemia Ind ,13, ,79 4.3% 2,872 $8.65 South Brooklyn Ind. 1,448 36,18,89 2,48, % 97,813 $ , South Central Suffolk Ind ,932, , % 16,629 $8.39 South Queens Ind ,887,21 614, % 97,476 $13.79 Southeast Nassau Ind ,738 4,784.5% 1, $12.21 Southern Nassau Ind ,411, , % 18,862 $1.72 Southwest Suffolk Ind. 68 1,58,6 245, % 15,176 $8.7 Staten Island Ind. 39 5,851,52 31, % 7,926 $12.49 Western Nassau Ind, 319 7,988, , % 14,652 $15.15 TOTALS 14, ,986,864 15,314,4 4.4% 719,573 $ , Construction Activity Markets Ranked by Under Construction RBA Market Under Construction Inventory Average Bldg Size # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Brooklyn Ind. 1 48,.% 21,228 48, Western Suffolk Ind..% 27,23 Queens Ind..% 24,321 Nassau Ind..% 23,743 Staten Island Ind..% 18,937 Central Suffolk Ind..% 23,893 Eastern Suffolk Ind..% 13,946

Unlike a one size fits all business philosophy, NAI Long Island and its account executives understand that clients require different services, and in order for a client to knowledgeably order from

11 NAI Long Island Who We Are NAI Long Island provides its clients with a menu of real estate services and specialized support. Our goal is to be able to customize a delivery platform based on a client s requirements. Unlike a one size fits all business philosophy, NAI Long Island and its account executives understand that clients require different services, and in order for a client to knowledgeably order from our menu, we are pleased to provide a basic description of what NAI Long Island offers. Founded in 198, NAI Long Island is acknowledged in the industry as a brokerage firm which demonstrates excellence and quality. Our professional staff have in-depth market knowledge, experience and the proven ability to negotiate successful client specific transactions. Our expertise is complemented and enhanced by a professional staff, state of the art systems, and a computerized database to provide current market and property information. NAI Long Island operates in the New York Metropolitan area, and is the Long Island and Queens local firm and exclusive member of NAI Global, the world s most extensive commercial real estate services organization. The philosophy of NAI Long Island is to consistently provide unsurpassed quality of service to our clients in all facets of brokerage and property management, and to maintain a positive, creative work environment in order to attract the most talented real estate professionals. By focusing on these fundamentals, we believe our business will continue to prosper and grow. NAI Long Island has assembled an outstanding group of professionals who are specialists in the management, sales, and leasing of properties. We believe our understanding of the market, and our local and regional marketing capabilities are unsurpassed. Strategies implemented by NAI Long Island include a combination of marketing fundamentals and innovative targeting and promotion, based on a clear understanding of the competitive positioning of the property. An important component in our approach to marketing is close coordination with the owner and property manager to ensure that each aspect of property operations enhances its marketability. Like us on Facebook Follow us on

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