2Q 16 Long Island Market Report
Long Island Office 2Q 216
Long Island 2Q16 Office Office Report The Long Island Office market ended the second quarter 216 with a vacancy rate of 7.5%. The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 249,268 square feet in the second quarter. Net absorption for the overall Long Island office market was positive 249,268 square feet in the second quarter 216. That compares to positive 432,52 square feet in the first quarter 216, positive 43,53 The Long square Island feet office in the market fourth quarter 215, and positive 797,777 square feet in the ended third the quarter 1st quarter 215. 215 with an increased vacancy During the second quarter rate 216, of 8.4%. two The buildings vacancy totaling rate 215,5 square feet were completed in the Long Island was 8.2% market at the area. end This of the compares 4th to six buildings totaling 211,172 square feet that quarter were completed 214, 8.% in at the the first end quarter 216, eight buildings totaling 24,435 square of feet the completed 3rd quarter, in and the 7.7% fourth quarter 215, and 23, square feet in one building completed at the end in the of the third 2nd quarter quarter 215. 214. The average quoted asking rental rate for available office space, all classes, was $27.3 per square foot per year at the end of the second quarter 216 in the Long Island market area. This represented a 3.% decrease in quoted rental rates from the end of the first quarter 216, when rents were reported at $28.13 per square foot. Tallying office building sales of 15, square feet or larger, Long Island (New York) office sales figures fell during the first quarter 216 in terms of dollar volume compared to the fourth quarter of 215. One of the largest transactions that occurred within the last four quarters in the New York Outer Boroughs market is the sale of 92 3rd St in Brooklyn. This 61,428-square-foot office building sold for $73,,, or $1,188.38 per square foot. The property sold on 7/28/215. Trends for 2Q16 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RATES SALES ACTIVITY Total office building sales activity in 216 was down compared to 215. In the first three months of 216, the market saw 13 office sales transactions with a total volume of $216,77,. The price per square foot averaged $191.36. In the same first three months of 215, the market posted 13 transactions with a total volume of $262,715,753. The price per square foot averaged $266.29. Significant Lease Transactions: Tenant Building Size Submarket New York City Fire Department Metrotech Center - North Bldg. 339,993 SF Downtown Brooklyn Honeywell Security Group 2 Corporate Center Drive 133,884 SF Western Suffolk Brooklyn Brewery Brooklyn Navy Yard - Building 77 75, SF Northern Brooklyn
Market Overview Report - 2Q 216 Total Office Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau 552 145,35,235 1,419,7 9.4% (149,856) $28.33 255, Central Queens 242 4,315,88 119,241 2.8% (2,42) $31.76 Central Suffolk 1,57 1,274,142 731,837 7.1% 29,394 $19.79 87,8 Downtown Brooklyn 193 22,639,77 1,358,298 6.% 28,889 $4.73 435,5 Eastern Nassau 525 13,839,766 1,269,482 9.2% 86,24 $26.35 Eastern Suffolk 659 3,682,626 197,226 5.4% 66,69 $23.61 23,141 North Brooklyn 62 1,555,638 1,542,4 14.6% 153,457 $28.83 324,655 Northeast Queens 658 1,872755 259,674 2.4% 51,315 $39.28 276,58 Northern Nassau 21 1,523,652 142,53 9.3% (23,865) $22.85 Northwest Queens 399 13,436,4 1,92,752 8.1% (314,246) $32.81 48,563 South Brooklyn 87 11,63,84 564,25 5.1% 1,961 $3.32 238,284 South Queens 356 5,95,757 369,931 6.3% 5,166 $27.13 29,4 Southeast Nassau 21 1,382,329 54,887 4.% 924 $24.3 Southern Nassau 558 5,63, 392,34 7.% 24,545 $25.17 Southwestern Suffolk 57 3,188,35 182,277 5.7% (24,691) $18.17 Staten Island 877 6,53,162 285,512 4.4% 77,678 $27.83 38,162 Western Nassau 461 12,992,517 1,112,846 8.6% 132,568 $3.42 295,58 Western Suffolk 1,278 23,787,65 2,67,875 8.7% 241,66 $24.44 2,541 TOTALS 1,232 176,628,11 13,161,366 7.5% 681,77 $27.3 2,54,684 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 19 994,439 289,42 29.% 26,298 52,549 Nassau 4 55,58 488,9 88.7% 2,22 137,514 Queens 8 354,543 33,279 93.2% 2,864 44,318 Suffolk 3 113,482 42,929 37.8% 11,691 37,827 Staten Island 1 38,162.% 7,446 38,162
Long Island Retail 2Q 216
Long Island 2Q16 Retail Retail Report The Long Island retail market did not experience much change in market conditions in the second quarter 216. The vacancy rate went from 3.5% in the previous quarter to 3.4% in the current quarter. Retail net absorption was moderate in Long Island second quarter 216, with positive 535,12 square feet absorbed in the quarter. In first quarter 216, net absorption was positive 592,178 square feet while in fourth quarter 215, absorption came in at positive 488,47 square feet. In third quarter 215, positive 868,711 square feet was absorbed in the market. During the second quarter 216, seven buildings totaling 51,97 square feet were completed in the Long Island retail market. Over the past four quarters, a total of 1,7,743 square feet of retail space has been built in Long Island. In addition to the current quarter, 14 buildings with 275,479 square feet were completed in first quarter 216, 12 buildings totaling 295,82 square feet completed in fourth quarter 215, and 385,212 square feet in 12 buildings completed in third quarter 215. Average quoted asking rental rates in the Long Island retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the second quarter 216 at $33.25 per square foot per year. That compares to $32.34 per square foot in the first quarter 216, and $32.46 per square foot at the end of the third quarter 215. Trends for 2Q16 VACANCY RATE NET ABSORPTION CONSTRUCTION Tallying retail building sales of 15, square feet or larger, Long Island (New York) retail sales figures fell during the first quarter 216 in terms of dollar volume compared to the fourth quarter of 215. One of the largest transactions that occurred within the last four quarters in the Long Island (New York) market is the sale of The Shops at Skyview Center in Flushing. This 785, square foot retail center sold for $382,357,933, or $487.8 per square foot. The property sold on 7/31/215, at a 5.5% cap rate. ASKING RATES SALES ACTIVITY Total retail center sales activity in 216 was down compared to 215. In the first three months of 216, the market saw 22 retail sales transactions with a total volume of $162,566,26. The price per square foot averaged $179.2. Significant Lease Transactions: Tenant Building Size Submarket Audi 3-35 College Point Blvd. 81,532 SF Northeast Queens Stew Leonard s Marketplace 1897 Front St 7, SF Central Nassau N/A 117 N Long Beach Rd. 45, SF Southern Nassau
Market Overview Report - 2Q 216 Total Retail Submarket Statistics SUBMARKET # BLDGS. TOTAL GLA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau 1,136 15,191,518 644,628 4.2% (4,569) $26.48 55 Central Queens 1,798 13,73,924 387,956 2.8% 93,947 $38.76 69,154 Central Suffolk 2,297 25,796,389 1,142,936 4.4% (14,566) $22.27 7,982 Downtown Brooklyn 511 5,655,333 182,431 3.2% 4,735 $96.25 737,8 Eastern Nassau 95 13,665,687 347,445 2.5% 54,927 $28.56 Eastern Suffolk 1,82 13,362,823 491,46 3.7% 11,768 $27.83 3, North Brooklyn 7,397 41,588,38 1,214,183 2.9% 187,925 $54.6 247,983 Northeast Queens 2,765 21,751,544 398,428 1.8% 245,85 $64.74 18,299 Northern Nassau 476 2,878,45 112,276 3.9% 17,814 $38.67 21, Northwest Queens 1,476 11,782,48 266,3 2.3% 41,31 $44.87 4,44 South Brooklyn 6,681 37,48,193 1,98,443 2.9% 393,57 $41.46 16,2 South Queens 2,48 16,928,766 734,96 4.3% 127,53 $33.8 77,568 Southeast Nassau 686 7,255,99 197,86 2.7% (18,426) $21.64 8,6 Southern Nassau 1,83 15,835,472 742,975 4.7% 63,535 $23.28 Southwestern Suffolk 1,164 11,56,511 391,281 3.4% 34,49 $23.19 28, Staten Island 2,353 17,327,271 64,24 3.5% (77,43) $34.84 787,333 Western Nassau 951 8,773,42 253,922 2.9% 9,183 $31.69 Western Suffolk 2,53 24,671,679 1,23,76 4.1% (7,44) $25.94 64,684 TOTALS 39,22 35,11,335 1,233,693 3.4% 1,127,28 $33.25 2,434,197 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 19 1,91,983 867,165 79.4% 5,82 57,473 Staten Island 4 787,333 758,262 96.3% 7,364 196,833 Queens 28 331,65 23,98 69.8% 7,6 11,824 Suffolk 7 193,666 77,54 4.% 9,645 27,667 Nassau 5 3,15 3,15 1.4% 1,596 6,3
Long Island Industrial 2Q 216
Long Island 2Q16 Industrial Industrial Report The Long Island Industrial market ended the second quarter 216 with a vacancy rate of 3.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (162,366) square feet in the second quarter. Vacant sublease space increased in the quarter, ending the quarter at 643,252 square feet. Rental rates ended the second quarter at $14.13, an increase over the previous quarter. Two buildings delivered to the market in the quarter totaling 128,626 square feet, with 574,268 square feet still under construction at the end of the quarter. Net absorption for the overall Long Island Industrial market was negative (162,366) square feet in the second quarter 216. That compares to negative (273,2) square feet in the first quarter 216, positive 1,379,337 square feet in the fourth quarter 215, and positive 1,477,344 square feet in the third quarter 215. Trends for 2Q16 VACANCY RATE NET ABSORPTION During the second quarter 216, two buildings totaling 128,626 square feet were completed in the Long Island market area. Nothing was completed in the first quarter 216, one building totaling 3,88 square feet completed in the fourth quarter 215, and 19,414 square feet in one building completed in the third quarter 215. CONSTRUCTION The average quoted asking rental rate for available Industrial space was $14.13 per square foot per year at the end of the second quarter 216 in the Long Island market area. This represented a 5.% increase in quoted rental rates from the end of the first quarter 216, when rents were reported at $13.46 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 first quarter 216 in terms of dollar volume compared to the fourth quarter of 215. In the first quarter, 4 industrial transactions closed with a total volume of $339,697,683. The 4 buildings totaled 1,88,73 square feet and the average price per square foot equated to $187.81. That compares to 64 transactions totaling $38,953,183 in the fourth quarter. The total square footage was 2,566,74 for an average price per square foot of $148.42. SALES ACTIVITY Significant Lease Transactions: Tenant Building Size Submarket N/A 171 Flushing Ave. 75, SF Central Queens Ind N/A 75 Summa Ave 68, SF Eastern Nassau Ind J. Crew Group, Inc. The Factory 59,68 SF Northwest Queens Ind
Market Overview Report - 2Q 216 Total Industrial Submarket Statistics SUBMARKET # BLDGS. TOTAL RBA (SF) TOTAL AVAILABLE (SF) TOTAL VACANT AVAILABLE (%) TOTAL NET ABSORPTION (SF) TOTAL AVG. RATE ($/SF/YR) UNDER CONSTRUCTION (SF) Central Nassau Ind. 46 9,466,1 383,29 4.% 1,74 $13.35 Central Queens Ind. 698 2,447,24 451,211 2.2% (128,836) $16.3 48,742 Deer Park Ind. 722 17,272,338 384,15 2.2% 19,45 $8.31 East Farmingdale Ind. 613 19,393,253 447,164 2.3% (17,2) $1.73 Eastern Nassau Ind. 713 24,124,122 99,438 4.1% (22,419) $11.39 44, Eastern Suffolk Ind. 435 5,438,694 39,64 7.2% 64,94 $8.72 14,86 Hauppauge Ind. 647 26,312,31 773,673 2.9% 4,15 $8.49 292, North Brooklyn Ind. 3,129 59,226,966 2,166,718 3.7% (143,191) $23.3 North Central Suffolk Ind. 21 3,297,243 78,689 2.4% 8,175 $12.24 Northeast Queens Ind. 571 11,794,298 177,349 1.5% 23,52 $19.7 75,446 Northern Nassau Ind. 15 2,391,413 518,648 21.7% 9,4 $1.63 Northwest Queens Ind. 1,453 34,951,584 1,115,533 3.2% (161,19) $18.28 Northwest Suffolk Ind. 224 3,448,851 15,71 3.1% 329,775 $1.58 Ronkonkoma/Bohemia Ind. 729 18,51,841 423,75 2.3% (32,827) $8.91 South Brooklyn Ind. 1,495 37,616,593 2,645,984 7.% (329,719) $19.53 48, South Central Suffolk Ind. 384 9,965,688 368,782 3.7% (9,49) $8.27 29,52 South Queens Ind. 618 13,163,91 472,154 3.6% (18,778) $14.45 9,425 Southeast Nassau Ind. 76 924,467.% 3,6 $. Southern Nassau Ind. 775 11,782,67 499,72 4.2% 66,23 $11.56 1 Southwest Suffolk Ind. 62 1,584,996 154,537 1.5% 26,428 $8.96 Staten Island Ind. 322 6,55,756 262,45 4.3% 11,229 $12.77 12,742 Western Nassau Ind, 318 8,14,521 195,917 2.4% (94,752) $13.55 TOTALS 15,38 353,724,683 13,4,59 3.7% (435,368) $14.13 574,268 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. 2 292, 32, 11.% 27,251 146, Queens Ind. 17 133,613 124,188 92.9% 24,59 7,86 Brooklyn Ind. 1 48,.% 2,944 48, Nassau Ind. 2 44,1 44,1 1.% 23,173 22, Central Suffolk Ind. 1 29,52 4,939 17.% 23,832 29,52 Eastern Suffolk Ind. 1 14,86 14,86 1.% 12,53 14,86 Staten Island Ind. 1 12,742 12,742 1.% 18,87 12,742
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