Long Island Office Market
Third quarter office vacancy rate remained elevated at 10.9%, though continuing it’s decline from a twenty-year high in 2023 dropping 150 basis points. Total available space decreased 591,098 square feet in the third quarter bringing the office availability rate to 12.1%, the market’s lowest level since the fourth quarter of 2020. Asking rents decreased $0.35/SF to $32.58/SF marking a third consecutive quarter of decreasing rents. Despite the decreases, third quarter asking rents remains 19.2% higher than 10-year average.
Long Island Industrial Market
Long Island industrial vacancy rose in the third quarter of 2025, up 40 basis points from 2024 year-end to 6.1%, the highest level since 2010. Average asking rent decreased $0.44/SF from the prior quarter to $16.35/SF. On a year-over-year basis, 2025 asking rents are $0.30/SF lower than 2024, a 1.8% drop. Year-to-date, Class A leasing totals 344,979 square feet, up 19.4% versus the same period in 2024. The share of class A buildings fell to 11.8% of all industrial leasing, the lowest level since 2021. Available sublease space fell 21.8% from the previous quarter to 727,080 square feet, though it remains elevated at 19.1% above its long-term average.