"The company was a single tenant in a small building and wanted to be in one of Long Island's most prestigious business centers," says Theodore P. Sasso, senior managing director of Insignia/ESG.
Yellow Book USA's new headquarters is a combination of leased and subleased space. Insignia/ESG represented both the building owner, Coliseum Towers Associates and the sublessor ABN Ambro, which holds a master lease for more than half of the building. The company employs approximately 125 workers.
Insignia/ESG's Sasso, Edward Fitzsimmons and Edward Taggart arranged the transaction for the landlord. Jones Lang LaSalle and Alliance Partners represented Yellow Book USA.
EAB Plaza, Long Island's largest office building, has in excess of 1.1 million sf of office and retail space. The building is over 96% occupied with a roster of tenants including Citibank, Del Laboratories, Dime Savings Bank and Dreyfus Service Corporation.
Yellow Book's rental rate was not disclosed. Rents in the Central Nassau County Class A market average $28.76 per sf net of electricity according to Insignia/ESG Research Services.
Office space on Long Island remains tight with no decline in pricing according to Sasso, although some sublease space is coming onto the market. He foresees increased demand in the second quarter of next year if the region's economy recovers as forecast.
"In the early 1980s Long Island benefited from companies coming out of New York City, doubling the office space Nassau and Suffolk counties," he says. "We expect to see a long-term impact from the events of Sept. 11 and a similar increase of companies coming to the suburban areas," he says.
The expensive and time-consuming process of constructing new buildings in Manhattan will also send companies needing space out of New York City, Sasso says. "We have a lot of approved sites on Long Island and we can have a new building up in a year," he says.
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