Long Island RE Market Holding Its Own

NEW YORK CITY-Long Island, like the rest of the metropolitan area, is feeling the Wall Street pinch, but is still doing remarkably well, according to C&W Long Island’s regional managing director Kenneth M. Krasnow. “In spite of the tight labor market and recent Wall Street downturn, several key companies have not hesitated to expand on Long Island,” he says. “The overall vacancy increase is primarily due to the recent delivery of large speculative projects in Suffolk County.”

One of these speculative projects is the 277,081-sf Reckson Executive Park at 58 South Service Road in Melville, the largest spec office project to be completed on Long Island since 1990. After the project’s completion, the overall vacancy rate in Western Suffolk County jumped to 14.9% from 12.4% at the end of the fourth quarter in 2000. The park has already welcomed its first tenant; OSI Pharmaceuticals of Uniondale signed a lease for 22,805 sf, so it is unlikely the vacancy rate will stay inflated for long. Leasing activity and sales activity were, overall, healthy.