Demand continues to outpace supply in Long Island's industrial market, driving rents to record heights. Leasing velocity reached 854K SF in Q2 2022, an increase of 56% from the quarterly average since 2019, according to JLL's Q2 Industrial Insight report for the market.
Industrial vacancies are hovering at around 3.2% on Long Island, with direct asking rents rising to $18.45 per square foot. Year-to-date net absorption has been 640K SF—the highest level in the first half of any year on record, according to JLL.
"This has left just five blocks of space over 100K SF available in Long Island, giving landlords the upper hand in lease negotiations. As a result, average asking rents have risen 30% year-over-year, with new construction buildings now asking as high as $24 per square foot," JLL's Q2 report for Long Island said.
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