Long Island’s industrial market continues to be robust, in demand, and correspondingly the market experienced 350,269 SF of positive absorption.
However, after quarter-upon-quarter of record-setting volume, it appears that there has been a slight easing off the accelerator, as there was once again a slight decline in leasing activity and the availability rate increased 60 basis points quarter-to-quarter to 4%. Long Island’s average asking rent continued its upward trend and was 4.44% higher than the second quarter, with an average asking rate of $15.29/SF.
A major contributing factor to the increase in total available space was the delivery of the vacant 235 Pinelawn Road in Melville which contributed more than half of the 935,448 SF quarterly increase in total available space in Long Island. Luckily, the delivery of an additional three fully-occupied buildings totaling 685,734 SF and strong leasing activity helped offset this and resulted in positive net absorption.