Industrial Market Report for Nassau and Suffolk Counties, Long Island

The third quarter 2018 vacancy rate rose from the previous quarter to 3.2%. Flex properties had a vacancy rate of 5.3% compared to the 4.8% vacancy rate of the second quarter 2018. The warehouse vacancy rate at 3.0% rose from the second quarter 2018 at 2.8%. Vacant industrial sublease space increased to 478,606 SF in the third quarter 2018 from 451,915 SF in the second quarter 2018. Vacant sublease space for flex properties increased substantially to 17,442 SF in the third quarter 2018 from 1,100 SF in the second quarter 2018. Vacant warehouse sublease space increased to 461,164 SF in the third quarter 2018 from 450,815 SF in the second quarter 2018. Net absorption for the third quarter finished at negative (329,176) square feet, a decrease from negative (478,930) SF reported in the second quarter 2018. 32,000 SF of new space in one building was completed in the third quarter 2018 with 198,990 SF still under construction. Sales activity for third quarter 2018 currently unavailable.