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Long Island Reaps Benefits From NYC Rent Surge

LAKE SUCCESS, NY-Office demand on Long Island soars as rent increases in New York City continue to push companies to look for alternatives.

By Melissa Kress | Updated on April 16, 2007

LAKE SUCCESS, NY-The first quarter figures are in, and class A office space on Long Island appears to be benefiting from the high rental rates in New York City. Demand for space remained strong in the first few months of the year, even as overall office vacancy rose.

According to a report by Sutton & Edwards Inc./TCN Worldwide, the overall office vacancy rate on Long Island hit 11.51%, up from 11% in the fourth quarter of 2006 and 11.07% in the first quarter of 2006. However, some counties did report good news in the first quarter, with Nassau and Suffolk registering an 8.12% vacancy rate, down from 8.81% at the end of 2006.

An increase in rents came along with the vacancy decrease, with the average asking rents for class A space reaching $29.75 per sf, up slightly from $29.69 per sf at year’s end. “The market is strong and should remain robust with an increasing tilt toward a landlords market producing continued rent increases,” Sutton & Edwards chief executive Herb Agin says in a statement. He adds that Long Island’s popularity should continue to grow as rents in New York City continue to rise, “causing companies located there to retain space they already have in Long Island or seek out additional space to house workers now in Manhattan.”

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