1Q 17. Long Island Market Report

Transcription

1 1Q 17 Long Island Market Report

2 Long Island Office 1Q 217

3 Long Island 1Q17 Office Office Report The Long Island Office market ended the first quarter 217 with a vacancy rate of 7.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (469,325) square feet in the first quarter. Net absorption for the overall Long Island office market was negative (469,325) square feet in the first quarter 217. That compares to negative (91,636) square feet in the fourth quarter 216, positive 484,988 square feet in the third quarter 216, and positive The Long Island office market 265,882 square feet in the second quarter 216. ended the 1st quarter 215 with an increased vacancy During the first quarter 217, five buildings totaling 122,648 square feet were completed rate of 8.4%. The vacancy rate in the Long Island market area. This compares to eight buildings totaling 351,66 square was 8.2% at the end of the 4th feet that were completed in the fourth quarter 216, six buildings totaling 75,428 square quarter 214, 8.% at the end feet completed in the third quarter 216, and 182,884 square feet in two buildings of the 3rd quarter, and 7.7% completed in the second quarter 216. at the end of the 2nd quarter 214. The average quoted asking rental rate for available office space, all classes, was $28.55 per square foot per year at the end of the first quarter 217 in the Long Island market area. This represented a 1.3% decrease in quoted rental rates from the end of the fourth quarter 216, when rents were reported at $28.94 per square foot. Tallying office building sales of 15, square feet or larger, Long Island (New York) office sales figures rose during the fourth quarter 216 in terms of dollar volume compared to the third quarter of 216. One of the largest transactions that occurred within the last four quarters in the Long Island (New York) market was the sale of the Falchi Building in Long Island City. This 711,194-square-foot office building sold for $255,,, or $ per square foot. The property sold on 12/23/216, at a 5.5% cap rate. Trends for 1Q17 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Total office building sales activity in 216 was down compared to 215. In the twelve months of 216, the market saw 58 office sales transactions with a total volume of $947,978,82. The price per square foot averaged $ In the same twelve months of 215, the market posted 75 transactions with a total volume of $1,91,627,558. The price per square foot averaged $ Significant Lease Transactions: Tenant Building Size Submarket Bjarke Ingels Group 45 Main Street 5, SF Downtown Brooklyn Unknown Gateway 1 35,564 SF Easter Nassau Unknown 1QPN Brewster Building 21,463 SF Northwest Queens

4 Market Overview Report - 1Q 217 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 ,135,123 1,9, % (19,555) $ , Central Queens 249 4,421, , % 34,646 $ ,174 Central Suffolk 1,68 1,246, , % (26,432) $ ,169 Downtown Brooklyn ,89,486 1,31, % (39,198) $ ,5 Eastern Nassau ,88,21 1,91, % (54,826) $ ,964 Eastern Suffolk 678 4,3, , % 35,46 $ ,141 North Brooklyn 646 1,293,173 1,218, % (43,576) $ ,861,471 Northeast Queens ,311, , % (67,258) $ ,785 Northern Nassau 213 1,555,26 114, % (13,817) $24.18 Northwest Queens ,591,997 1,797, % (197,926) $ ,481 South Brooklyn ,476, , % (33,919) $ ,699 South Queens 371 6,1, , % (17,676) $ ,41 Southeast Nassau 211 1,379,585 45, % 1,116 $ ,13 Southern Nassau 571 5,68, ,272 6.% 39,98 $24.71 Southwestern Suffolk 52 3,232,64 22, % 22,77 $19.19 Staten Island 893 6,642, , % (3,11) $ , Western Nassau ,98,47 715, % 9,5 $ ,62 Western Suffolk 1,285 23,865,53 2,229, % (13,91) $ , TOTALS 1,52 184,842,322 13,147, % (469,325) $ ,242,86 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 Brooklyn 23 2,81,67 662, % 27, ,812 Nassau 8 662,39 611, % 19,815 82,755 Queens , ,5 5.8% 21,83 48,834 Suffolk 5 79,31 56, % 11,644 15,862 Staten Island 1 65, 35,1 54.% 7,438 65,

5 Long Island Retail 1Q 217

6 Long Island 1Q17 Retail Retail Report The Long Island retail market experienced a slight decline in market conditions in the first quarter 217. The vacancy rate went from 3.2% in the previous quarter to 3.4% in the current quarter. Retail net absorption was slightly negative in Long Island first quarter 217, with negative (412,19) square feet absorbed in the quarter. In fourth quarter 216, net absorption was positive 91,422 square feet, while in third quarter 216, absorption came in at positive 694,67 square feet. In second quarter 216, positive 546,72 square feet was absorbed in the market. During the first quarter 217, 2 buildings totaling 231,761 square feet were completed in the Long Island retail market. Over the past four quarters, a total of 1,361,42 square feet of retail space has been built in Long Island. In addition to the current quarter, 18 buildings with 892,948 square feet were completed in fourth quarter 216, 17 buildings totaling 149,311 square feet completed in third quarter 216, and 87,382 square feet in eight buildings completed in second quarter 216. Average quoted asking rental rates in the Long Island retail market are unchanged over previous quarter levels, and down from their levels four quarters ago. Quoted rents ended the first quarter 217 at $32.84 per square foot per year. They were the same in the fourth quarter 216, and $33.43 per square foot at the end of the second quarter 216. This represents a 1.8% decrease from four quarters ago. Tallying retail building sales of 15, square feet or larger, Long Island (New York) retail sales figures fell during the fourth quarter 216 in terms of dollar volume compared to the third quarter of 216. One of the largest transactions that occurred within the last four quarters in the Long Island (New York) market is the sale of RKO Keith-Albee Theatre in Flushing. This 77,348 square foot retail center sold for $65,775,, or $85.38 per square foot. The property sold on 7/29/216 as a redevelopment project. Trends for 4Q16 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Total retail center sales activity in 216 was down compared to 215. In the twelve months of 216, the market saw 76 retail sales transactions with a total volume of $775,84,96. The price per square foot averaged $ Significant Lease Transactions: Tenant Building Size Submarket Regal Cinemas Riverhead Plaza 5, SF Eastern Suffolk Target Soundview Marketplace 48,1 SF Western Nassau Unknown 2965 Hempstead Turnpike 48, SF Eastern Nassau

7 Market Overview Report - 1Q 217 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 1,161 15,444, ,97 3.8% (34,26) $ , Central Queens 1,896 14,292,36 282,8 2.% 162,34 $ ,366 Central Suffolk 2,319 26,75,47 1,267, % 37,59 $ ,5 Downtown Brooklyn 518 6,556, , % 558,761 $74.64 Eastern Nassau ,529, , % 85,37 $ ,971 Eastern Suffolk 1,867 13,967, ,716 4.% (75,626) $ ,696 North Brooklyn 7,831 43,869,222 1,274, % 372,43 $ ,789 Northeast Queens 2,89 22,73, , % 263,173 $ ,396 Northern Nassau 482 3,127,121 11, % 29,86 $ , Northwest Queens 1,558 12,22, , % 48,39 $ ,718 South Brooklyn 7,9 39,479,271 1,48, % 63,597 $ ,47 South Queens 2,695 18,198, , % 18,327 $ ,949 Southeast Nassau 713 7,47, , % (21,875) $ ,6 Southern Nassau 1,873 16,228, , % 132,855 $ , Southwestern Suffolk 1,197 11,61,99 417,72 3.6% 49,752 $26.13 Staten Island 2,382 17,51,97 669,23 3.8% (86,53) $ ,15 Western Nassau 968 8,882, ,67 3.6% 22,599 $ ,57 Western Suffolk 2,542 24,856, ,48 4.% 151,81 $ ,754 TOTALS 4, ,35,638 1,83,6 3.4% 2,48,455 $ ,187,281 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 , , % 5,823 42,774 Staten Island 4 841,15 86, % 7,348 21,254 Queens , , % 7,387 29,94 Nassau ,628 27, % 1,48 36,279 Suffolk 1 197,95 137, % 9,654 19,795

8 Long Island Industrial 1Q 217

9 Long Island 1Q17 Industrial Industrial Report The Long Island Industrial market ended the first quarter 217 with a vacancy rate of 4.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (1,594,33) square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 743,863 square feet. Rental rates ended the first quarter at $15.22, an increase over the previous quarter. A total of three buildings delivered to the market in the quarter totaling 24,283 square feet, with 591,232 square feet still under construction at the end of the quarter. Net absorption for the overall Long Island Industrial market was negative (1,594,33) square feet in the first quarter 217. That compares to negative (743,153) square feet in the fourth quarter 216, positive 191,348 square feet in the third quarter 216, and positive 92,96 square feet in the second quarter 216. During the first quarter 217, three buildings totaling 24,283 square feet were completed in the Long Island market area. This compares to eight buildings totaling 47,572 square feet that were completed in the fourth quarter 216, three buildings totaling 53,35 square feet completed in the third quarter 216, and 151,886 square feet in four buildings completed in the second quarter 216. Trends for 1Q17 VACANCY RATE NET ABSORPTION CONSTRUCTION The average quoted asking rental rate for available Industrial space was $15.22 per square foot per year at the end of the first quarter 217 in the Long Island market area. This represented a.3% increase in quoted rental rates from the end of the fourth quarter 216, when rents were reported at $15.18 per square foot. ASKING RATES Tallying industrial building sales of 15, square feet or larger, Long Island (New York) industrial sales figures fell during the fourth quarter 216 in terms of dollar volume compared to the third quarter of 216. One of the largest transactions that occurred within the last four quarters in the Long Island (New York) market is the sale of Bridgedale Plaza in Long Island City. This 656,-square-foot industrial building sold for $195,,, or $ per square foot. The property sold on 7/12/216 as a redevelopment project. SALES ACTIVITY Significant Lease Transactions: Tenant Building Size Submarket One Stop Northern 47- Northern Blvd. 125, SF Northwest Queens Ind. Lafayette 148 Brooklyn Navy Yard - Building 77 74, SF Northern Brooklyn Ind. Unknown Gate 1 4, SF Northern Brooklyn Ind.

10 Market Overview Report - 1Q 217 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 ,448,43 259, % 128,643 $13.21 Central Queens Ind. 73 2,565,12 72, % (27,16) $ ,742 Deer Park Ind ,263, , % (53,148) $8.59 East Farmingdale Ind ,377,29 43, % (14,368) $11.5 Eastern Nassau Ind ,476, , % 96,971 $12.39 Eastern Suffolk Ind ,536,139 31, % (39,719) $ , Hauppauge Ind ,441, , % (128,827) $ , North Brooklyn Ind. 3,175 62,42,411 2,823,58 4.6% (427,98) $27.7 8,2 North Central Suffolk Ind. 2 3,246,844 62, % 8,12 $12.36 Northeast Queens Ind ,5,688 25,59 2.1% (32,66) $2.8 29,174 Northern Nassau Ind. 14 2,356, , % 25, $11.86 Northwest Queens Ind. 1,467 33,76,814 1,352,77 4.% (262,479) $ ,131 Northwest Suffolk Ind ,433, ,31 3.7% (3,5) $1.25 Ronkonkoma/Bohemia Ind ,169, , % (89,328) $ , South Brooklyn Ind. 1,521 34,97,621 3,54, % (282,5) $ ,4 South Central Suffolk Ind ,982, , % (79,311) $1.4 64,761 South Queens Ind ,637, , % (58,643) $15.42 Southeast Nassau Ind ,787 36,72 4.% 1,28 $11.85 Southern Nassau Ind ,835,47 421, % (28,469) $11.79 Southwest Suffolk Ind ,652,366 27,66 1.9% (62,499) $8.78 Staten Island Ind. 34 6,252,45 215,59 3.4% 4,67 $ ,4 Western Nassau Ind, 323 7,787,714 73,833.9% 1,649 $15.68 TOTALS 15,51 354,142,42 14,492, % (1,594,33) $ ,232 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 Western Suffolk Ind , 32, 11.% 27,21 146, Queens Ind. 8 12,47 113, % 23,56 15,6 Central Suffolk Ind. 5 88,761 4, % 23,841 17,752 Brooklyn Ind. 4 61,24 5,4 8.2% 2,645 15,256 Eastern Suffolk Ind. 1 23,.% 12,357 23, Staten Island Ind. 1 6,4.% 18,389 6,4 Nassau Ind..% 23,18

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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