It's not just New York City in the Empire State seeing a resilient office recovery — with suburb Long Island now joining the party too.
The area that's home to the Hamptons posted a 13 percent office vacancy rate in the third quarter, down 70 basis points from the previous three months, according to a market report from Cushman & Wakefield. That number is the lowest seen since the end of 2021.
"Eastern Nassau led the trend, posting the largest drop since last quarter—down 620 bps to 11.9%—as a substantial amount of space was removed from the market at 200 and 300 Jericho Quadrangle in Jericho," the brokerage said.
Also, demand was strong enough to offset supply, with net absorption coming in at 497,000 square feet. In the year-to-date through the third quarter, leasing activity exceeded 1.2 million square feet in the market, right on pace with 2024's totals. Also, renewal activity is up 6.4 percent year-over-year.
Island Peer Review Organization made the largest signing, snagging 58,000 square feet in the Eastern Nassau submarket. The runners up were Esquire Bank, Shaub Ahmuty Citrin & Spratt and World Insurance Associates LLC, which signed 49,017 square feet, 26,601 square feet and 13,135 square feet leases, respectively.
The one negative trend in Long Island's office sector was rental rates, which declined by 64 cents per square foot to $33.35 per square foot quarter-over-quarter.
But overall, Cushman & Wakefield sees sunny days ahead for Long Island. It said, "resilient market fundamentals and a strengthening economy are expected." In the third quarter, the unemployment rate in the city declined by 20 basis points to three percent, which is well below the national average of 4.3 percent.
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