Long Island,NY Industrial Vacancies Nudge Higher, Rents Rise

Industrial vacancies in Long Island's two-county market crept higher during the 2006 second quarter as propsective tenants resisted higher rents, the commercial real estate services firm Sutton & Edwards Inc./TCN Worldwide reported.

Lake Success, NY (PRWEB) July 17, 2006 -- Long Island’s industrial vacancy rate nudged slightly higher during the second quarter of 2006 and average asking rents continued to rise from the previous three months, according to Long Island’s leading commercial real estate services firm Sutton & Edwards Inc./TCN Worldwide.

Overall, the vacancy rate for industrial space in the Nassau-Suffolk two-county region rose to 6.56 percent during the second quarter from 6.22 percent at the end of the first three months of 2006. One year ago, the industrial vacancy rate stood at 6.43 percent.

The average asking rent for industrial space in the region was $10.82 per square foot, compared with $10.46 in the first quarter and $10.93 a year earlier.

Despite the recent up tick, the vacancy rate remains near historic lows, said Alan Rosenberg, President of Sutton & Edwards, noting that the cost of industrial space has risen by about 50 percent in the last two years to record levels. “Rents are just out of this world. They went up so fast,” he noted, explaining that the increases have resulted in some resistance among prospective tenants. Consequently, he said, “Rents have stagnated.”

In Nassau, the industrial vacancy rate at the end of the 2006 second quarter was down to 6.69 percent, compared with 6.92 percent three months earlier and 7.20 percent one year ago. Asking rents rose to $11.72 per square foot, from $11.62 in the 2006 first quarter. In the comparable year-ago quarter the average asking rent was $11.93. Nassau has approximately 49 millions square feet of industrial space.

In Suffolk, which has almost twice as much industrial space as Nassau, the vacancy rate rose to 6.5 percent, from 5.86 percent in the first quarter of 2006. One year earlier, the rate vacancy in Suffolk was 5.62 percent. Asking rents in the county rose to $9.92 per square foot from $9.66 three months earlier. A year ago, the average rent for industrial space was $10.17. During the latest quarter, more than 650,000 square feet became available for lease or sale in Suffolk, while 187,000 square feet were removed from the market.

Founded in 1962, Sutton & Edwards Inc. / TCN Worldwide is Long Island’s premier commercial real estate services firm. Headquartered in Lake Success, NY, the firm employs 64 real estate specialists providing integrated leasing, investment sales, property management and advisory solutions. To find out more about Sutton & Edwards, please call 1-516-328-6500, or visit the firm's Web site at www.suttonandedwards.com.

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