Sutton & Edwards Reports Long Island Office Rents Rose in 2006 as Vacancies Held Steady
Sutton & Edwards Inc./TCN Worldwide reports that office rents in Long Island's Nassau and Suffolk Counties continued to rise in 2006 as vacancies held steady. Executives of the region's largest commercial real estate brokerage firm described the market as being in equilibrium, but said the dearth of large spaces means that landlords will be able to get higher asking rents. Class A office space in Nassau County topped $31 per square foot at the end of 2006.
Lake Success, NY (PRWEB) January 31, 2007 -- Office rents on Long Island continued to ratchet higher during 2006 even as vacancies held relatively steady, according to a new report by Sutton & Edwards Inc. / TCN Worldwide, Long Island's leading commercial real estate services firm.
Rents for Class A office buildings -- the newest properties with the best locations and a slew of amenities -- were up by more than 4 percent year to year. In Nassau County, the more populous of the two-county regions, asking rents rose by more than 5 percent and now average more than $31 per square foot per year.
Islandwide, the average asking rent for office space was $27.26 per square foot at the end of 2006. That compared with $26.60 at the end of the third quarter at $26.16 one year ago.
The average asking rent at yearend for Class A space Islandwide was $29.69 per square foot, up from $29.39 at the end of September. One year earlier, the average asking rent was $28.44.
"The equilibrium between a landlord and tenant market continued throughout 2006 and we project the same through 2007," said Herb Agin, chief executive of Sutton & Edwards. "The increase in rental rates was modest confirming a strong balanced market."
Alan Rosenberg, Sutton & Edwards president, said, landlords of prime buildings will be able to continue to command high rents, because few large blocks are available in prime buildings throughout the region. "There's not a lot of product out there," he said. "They're going to get the numbers."
Also, he noted that the escalating prices that building owners are paying to acquire existing properties also will factor into office rents.
The office vacancy rate on Long Island was 11 percent during the final quarter of 2006, a slight dip from the previous quarter's 11.09 percent. One year ago, the rate was 10.44 percent. The islandwide vacancy rate for Class A office space was 8.81 percent, up a tad from 8.40 percent three months earlier, but just below the 8.83 percent of a year ago.
In Nassau County, the office vacancy rate at yearend was 10.11 percent, unchanged from three months earlier. One year ago, the rate stood at 9.94 percent. Nevertheless, average asking rents rose to $28.66 per square foot, from $27.86 at the end of September and $27.23 at yearend 2005.
Nassau Class A vacancy rose to 8.54 percent, from 7.55 percent three months earlier, but was well below the year-ago year ago figure of 9.35 percent. Asking rents for prime properties in the county increased to $31.46, from $31.16 three months earlier. At yearend 2005, the average Class A rent was $29.94 recorded at the end of 2005.
In Suffolk County, the fourth-quarter vacancy rate dipped to 12.7 percent, from 12.95 percent three months earlier. A year ago, the county's office vacancy rate was 11.4 percent. The average asking rent rose to $23.73 from $23.46 three months earlier. A year ago average asking rent also was $23.46.
The Suffolk Class-A vacancy rate fell to 9.32 percent, from 10.01 percent three months earlier. A year ago, the rate was 7.82 percent. Despite the increased vacancy rate, aver rage asking rents for these prime spaces rose to $26.14 from $25.83 three months earlier and $25.43.at the end of 2005.
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.
###
|
