Lake Success, NY (PRWEB) April 23, 2007
Industrial rents on Long Island continued to climb even as vacancy rates increased during the first quarter of 2007, according to a new report by Long Island's leasing commercial real estate services firm Sutton & Edwards Inc. / TCN Worldwide.
Overall, the vacancy rate for industrial space in the Nassau-Suffolk County region rose to 7.39 percent from 6.66 percent at yearend. Despite the increased vacancy rate, the average asking rent rose to $12.08 per square foot, up sharply from $11.18 at year end. Twelve months earlier, the vacancy rate stood at 6.22 and the average asking was $10.46 per square foot. There is a total of 150 million square feet in the two-county region.
The rise in the vacancy rate, however, masks the lack of functional space in the region, said Sutton & Edwards Chief Executive Herb Agin. "Much of the space that remains today is functionally obsolete which investors/developers will find other uses for. There is limited good space out there."
Moreover, "The skyrocketing price paid by investors in and users of industrial real estate on Long Island is contributing to the increase in asking rents," he noted.
In Nassau, the industrial vacancy rate at the end of the 2007 first quarter dropped to 6.44 percent from 6.83 percent at yearend. The average asking rent for the latest quarter in Long Island's westernmost county was $13.93 per square foot, up from $12.44 at year ended. On year earlier, the Nassau industrial vacancy rate was 6.92 percent, when the average asking rent was $11.62. Nassau has approximately 49 million square feet of industrial space.
In Suffolk, which has almost twice as much industrial space as Nassau, the vacancy rate rose to 7.89 percent in the latest quarter, from 5.88 percent at yearend. One year ago that rate was 5.86. In the latest three months, asking rents averaged $10.23, up from $9.92 at year end and $9.66 twelve months earlier.
Central Nassau -- Albertson, Garden City, Garden City Park, Hempstead, Mineola, West Hempstead and Westbury -- remained the region's tightest submarket with a vacancy rate of 5.16 percent. Central southwest Suffolk -- Bay Shore, Brentwood, Central Islip, Islandia, Islip and West Islip -- had the highest vacancy rate of any submarket, 11.24 percent.
Founded in 1962, Sutton & Edwards Inc. / TCN Worldwide is Long Island's premier commercial real estate services firm. Headquartered in Lake Success, NY, with a satellite office in Ronkonkoma, NY, the firm employs more than 60 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 http://www.suttonandedwards.com.