2Q 15 Long Island Market Report
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, 8.2% 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 $265 PSF. Significant Lease Transactions: Tenant Building Size Submarket North Shore-LIJ Health System North Hills 252, SF Western Nassau Hillary Clinton Campaign Headquarters One Pierrepont Plaza 77,685 SF Downtown Brooklyn WeWork 77 Sands Street 75,228 SF Downtown Brooklyn N/A 1625 Forest Avenue 39, SF Staten Island Regus The Falchi Building 34,211 SF Northwest Queens
Market Overview Report - 2Q 215 Total Office Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau 535 14,873,656 1,247,57 8.4% 141,12 $26.27 Central Queens 221 4,52,758 121,582 3.% 1,674 $32.92 Central Suffolk 1,31 9,676,94 81,31 8.3% (18,744) $19.88 Downtown Brooklyn 192 22,418,28 1,637,119 7.3% (98,177) $33.69 Eastern Nassau 56 13,614,568 1,526,474 11.2% 24,84 $26.43 Eastern Suffolk 612 3,428,847 238,7 6.9% 26,186 $21.79 12,2 North Brooklyn 67 1,17,287 1,475,21 14.7% 178,784 $26.17 124,165 Northeast Queens 637 1,61,68 338,239 3.2% 27,529 $35.98 31,425 Northern Nassau 22 1,426,788 12,43 8.4% 6,63 $22.4 Northwest Queens 394 13,276,518 62,5 4.5% 586 $3.98 595, South Brooklyn 815 1,622,731 753,183 7.1% 4,543 $3.29 5,4 South Queens 327 5,545,332 357,594 6.4% (4,652) $28.2 Southeast Nassau 194 1,32,799 61,944 4.7% 12,426 $23.37 Southern Nassau 542 5,563,693 453,182 8.1% 27,8 $26.6 Southwestern Suffolk 483 3,92,269 161,649 5.2% 15,928 $16.62 Staten Island 858 6,451,1 472,817 7.3% 5,547 $26.15 9,797 Western Nassau 456 12,879,39 1,377,649 1.7% 3,483 $3.38 Western Suffolk 1,264 23,742,162 2,325,7 9.8% 5,649 $24.38 2,541 TOTALS 9,876 172,64,69 14,71,196 8.2% 548,559 $26.71 1,14,528 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 43,886 47.6% 21,21 129,346 Brooklyn 4 174,565 416.2% 26,678 43,641 Suffolk 3 14,741.% 111,782 4,914 Staten Island 1 9,797.% 7,519 9,797 Nassau.% 2,42
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, 4.1% 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 $342.61 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 $32.59. 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 $13.99. Trends for 2Q15 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Significant Lease Transactions: *Renewal Tenant Building Size Submarket Century 21 Deptartment Store Green Acres Mall 72,266 SF Southern Nassau Stew Leonard s Inc. Airport Plaza 6, SF Western Suffolk King Kullen 1235 Middle Country Rd.* 45,2 SF Central Suffolk Fairway Market Georgetowne Shopping Center 4, SF South Brooklyn Forever 21 49 Fulton Street 4, SF Downtown Brooklyn
Market Overview Report - 2Q 215 Total Retail Submarket Statistics SUBMARKET # BLDGS. TOTAL GLA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau 1,71 14,749,955 76,258 4.8% 2,72 $27.7 162,5 Central Queens 1,612 12,757,87 447,571 3.5% 45,35 $36.19 57,785 Central Suffolk 2,246 25,428,74 1,128,435 4.4% 76,745 $22.21 Downtown Brooklyn 514 4,975,42 224,97 4.9% 8,797 $87.76 737,8 Eastern Nassau 911 13,252,899 436,152 3.3% 53,976 $25.1 Eastern Suffolk 1,78 12,586,452 581,598 4.6% 51,927 $25.46 North Brooklyn 6,98 39,699,646 1,258,91 3.2% (27,899) $53.29 248,854 Northeast Queens 2,579 21,227,221 632,661 3.% (33,627) $59.5 151,846 Northern Nassau 469 2,838,658 149,188 5.3% 14,395 $38.17 Northwest Queens 1,316 11,95,911 247,835 2.2% 61,822 $37.61 18,842 South Brooklyn 5,854 34,256,121 1,469,139 4.3% 16,256 $36.8 119,446 South Queens 2,148 15,999,679 84,312 5.% 66,543 $31.1 251,154 Southeast Nassau 646 6,959,53 23,516 2.9% 32,163 $26.75 Southern Nassau 1,666 15,17,767 792,278 5.3% 62,127 $24.89 13,235 Southwestern Suffolk 1,113 11,192,673 372,482 3.3% 59,717 $19.8 Staten Island 2,31 17,143,241 456,963 2.7% 35,514 $29.78 132,68 Western Nassau 918 8,64,686 361,566 4.2% 29,14 $35.5 Western Suffolk 2,511 24,523,684 939,54 3.8% 111,538 $24.69 2,484 TOTALS 36,5 292,345,613 11,23,465 3.8% 829,6 $32.19 1,914,626 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 1,16,1 793,778 71.8% 5,945 79,7 Queens 18 479,627 437,935 91.3% 7,979 26,646 Nassau 3 175,735 175,735 1.% 1,818 58,578 Staten Island 7 132,68 78, 58.8% 7,421 18,954 Suffolk 1 2,484 1,447 51.% 9,73 2,484
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 4.6% 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 $26.53. 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 $15.85. Trends for 2Q15 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Significant Lease Transactions: *Renewal Tenant Building Size Submarket InvaGen Pharmaceuticals Inc. 275 Carleton Ave. 26, SF Hauppauge Ind. L-3 Communications Narda Satellite Networks 435 Moreland Rd.* 149,87 SF Hauppauge Ind. Levitan Robbins Electrical Supply 13 Foster Ave. 142, SF South Brooklyn Ind. New York City Police Department 47-15 Pearson Pl.* 87,36 SF Northwest Queens Ind. Wleding Metallurgy, Inc. 11 Plant Ave.* 81,38 SF Hauppauge Ind.
Market Overview Report - 2Q 215 Total Industrial Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau Ind. 445 9,36,689 382,125 4.1% (27,985) $12.11 Central Queens Ind. 67 2,79,871 472,659 2.4% 25,149 $14.93 Deer Park Ind. 72 17,28,711 396,868 2.3% 11,347 $7.97 East Farmingdale Ind. 63 18,984,617 544,434 2.9% 16,919 $9.96 Eastern Nassau Ind. 71 24,93,728 1,537,881 6.4% (54,38) $1.63 Eastern Suffolk Ind. 349 4,867,146 466,134 9.6% 46,23 $8.91 Hauppauge Ind. 645 26,28,814 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. 196 3,287,679 99,444 3.% 35,23 $11.34 Northeast Queens Ind. 551 11,995,63 219,27 1.8% 27,518 $17.74 Northern Nassau Ind. 16 2,519,876 498,448 19.8% 6,2 $1.82 Northwest Queens Ind. 1,438 34,225,624 1,197,67 3.5% 182,949 $16.31 Northwest Suffolk Ind. 221 3,357,327 123,847 3.7% 13,434 $13.53 Ronkonkoma/Bohemia Ind. 73 18,13,689 781,79 4.3% 2,872 $8.65 South Brooklyn Ind. 1,448 36,18,89 2,48,723 6.7% 97,813 $19.18 48, South Central Suffolk Ind. 385 9,932,546 412,883 4.2% 16,629 $8.39 South Queens Ind. 597 12,887,21 614,992 4.8% 97,476 $13.79 Southeast Nassau Ind. 76 896,738 4,784.5% 1, $12.21 Southern Nassau Ind. 714 11,411,925 822,658 7.2% 18,862 $1.72 Southwest Suffolk Ind. 68 1,58,6 245,218 2.3% 15,176 $8.7 Staten Island Ind. 39 5,851,52 31,331 5.3% 7,926 $12.49 Western Nassau Ind, 319 7,988,986 169,653 2.1% 14,652 $15.15 TOTALS 14,933 349,986,864 15,314,4 4.4% 719,573 $13.4 48, 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
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