According to CBRE’s second quarter Long Island market report, the availability rate on Long Island dropped 20 basis points (bps) quarter-over-quarter to 10.9%. This was due to steady leasing activity and no new significant available blocks of space coming to market during Q2.
Leasing activity on Long Island totaled 485,000 square feet during Q2 2019, a 20% decrease from Q1 2019 but on par with the five-year quarterly average. Three of the top deals signed during the quarter were in the 30,000- to 50,000-square-foot size range.
“The Long Island office market posted a relatively strong quarter, pointing to the underlying health of the overall real estate market in Nassau and Suffolk Counties,” said Tricia Shay, Managing Director of CBRE’s Long Island office. “Leasing activity during Q2 was bolstered by deals in the mid-size range, with three tenants signing new leases for more than 30,000 square feet of space. The Class A segment also performed well, driving the quarter’s positive absorption.”
Net absorption during the second quarter on Long Island totaled positive 50,000 sq. ft., the second consecutive quarter of positive net absorption. With this, the overall availability rate fell 20 bps to 10.9% in Q2 2019 from the previous quarter. As is often the case on Long Island, one or two large lease transactions or new blocks of available space can significantly impact the availability rate.
Long Island’s overall average asking rent inched up quarter-over-quarter to $27.50 per sq. ft. and increased 2% year-over-year. The Class A average asking rent remained relatively flat quarter-over-quarter, but rose 2% to $32.02 per sq. ft. year-over-year.
The Long Island Q2 MarketView can be found here.
Leasing activity on Long Island totaled 485,000 square feet during Q2 2019, a 20% decrease from Q1 2019 but on par with the five-year quarterly average. Three of the top deals signed during the quarter were in the 30,000- to 50,000-square-foot size range.
“The Long Island office market posted a relatively strong quarter, pointing to the underlying health of the overall real estate market in Nassau and Suffolk Counties,” said Tricia Shay, Managing Director of CBRE’s Long Island office. “Leasing activity during Q2 was bolstered by deals in the mid-size range, with three tenants signing new leases for more than 30,000 square feet of space. The Class A segment also performed well, driving the quarter’s positive absorption.”
Net absorption during the second quarter on Long Island totaled positive 50,000 sq. ft., the second consecutive quarter of positive net absorption. With this, the overall availability rate fell 20 bps to 10.9% in Q2 2019 from the previous quarter. As is often the case on Long Island, one or two large lease transactions or new blocks of available space can significantly impact the availability rate.
Long Island’s overall average asking rent inched up quarter-over-quarter to $27.50 per sq. ft. and increased 2% year-over-year. The Class A average asking rent remained relatively flat quarter-over-quarter, but rose 2% to $32.02 per sq. ft. year-over-year.
The Long Island Q2 MarketView can be found here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
