The fourth quarter 2016 vacancy rate rose slightly from 7.4% in the previous quarter to 7.5%. The average quoted office rental rate for all office space in Nassau and Suffolk increased from $25.73 in the third quarter to $25.83 in the fourth quarter. The average quoted rate for Class A office space fell by 1.6%, while Class B and Class C office space rates rose by 1.1% and .2% respectively. Net absorption was negative for the first time in 2016 at (202,414), down from positive 322,972 in the third quarter 2016. Net absorption for Class A was negative (207,815), Class B was positive 54,610 and Class C was negative (49,209). During the fourth quarter 2016 no new space was added to the market in the Nassau and Suffolk County market area. There was 733,525 square feet of space still under construction at the end of the fourth quarter. When looking at office building sales of 15,000 square feet or larger, sales significantly declined in the third quarter 2016. There were seven transactions with a total volume of $44,825,000. The seven properties consisted of 260,616 square feet, making the average price per square foot $172.00 compared to an average price per square foot of $147.12 in the second quarter 2016.
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