Long Island Office Market
Following two consecutive quarters of negative absorption, the Long Island office market saw a rebound during the fourth quarter, bringing the annual total absorption to 97,564 square feet. Total available space decreased 53,929 square feet during the fourth quarter of 2024, as the availability rate fell to 13.4%, the market’s lowest level since 2022. Asking rents continued to decline during the fourth quarter of 2024, falling $0.06/SF from the previous quarter to $28.44/SF. While 2024 asking rents were down 6.1% year-over-year, they remain 1.7% above the long-term average of $27.96/SF. The fourth quarter of 2024 experienced a substantial decline in sublease asking rates due to significant removals at 1 Huntington Quadrangle. As a result, the rent spread between sublease and direct rates fell to their lowest levels since 2020.
Long Island Industrial Market
In 2024, Long Island total vacancy increased to 5.7% due to the delivery of 13 properties totaling 2,046,981 square feet. Long Island recorded average industrial asking rents of $16.65/SF in the fourth quarter of 2024, a $0.30/SF decrease from the fourth quarter of 2023. Despite this decline, 2024 asking rents remain 13.9% above the long-term average of $14.61/SF. 506,990 square feet of class A leasing activity was recorded in 2024, far outpacing the long-term average of 278,972 square feet. Class A’s share of leasing activity increased to 17.2%, its highest level over the past twenty years. In the fourth quarter of 2024, available sublease space in Long Island increased by 21.9% from the previous quarter to 965,708 square feet, a 14-year high.