Long Island’s industrial market remains particularly robust, but e-commerce demand has subsided somewhat, and the market experienced 275,022 SF of negative absorption as occupiers re-evaluated their space requirements.
During the second quarter, there was also a slight decline in leasing activity, but well above pandemic lows. The availability rate also increased 20 basis points quarter-to-quarter to 3.3%. Long Island’s average asking rent continued to increase as demand persists, and is now 2.59% higher than the first quarter, with an average asking rate of $14.64/SF.
Unfortunately, due to labor shortages and supply chain disruptions, construction pipelines have been delayed. During the second quarter, zero properties were delivered as completion timelines have been extended. There are currently nine properties under construction totally 1.58 MSF, and twenty-nine totaling 5.02 MSF are proposed for the market.