From 2002 to 2008 the commercial office market on Long Island was on an upward spiral. Fueled by a growing economy, the rents kept rising as the vacancy rates kept falling. By the summer of 2008 the average asking rent for Nassau and Suffolk County “A” buildings reached $35.30 and “B” buildings reached $30.06; rates previously unimagined for this region. It was a good time to be a landlord and they made the most of their opportunity. However, all bubbles eventually burst.
The burst ocurred in the third quarter of 2008 as the National economy collapsed. By the beginning of 2009 the New York City office market nose-dived. Long Island was soon to feel the after effects. NYC companies put their Long Island space on the market for sub-lease and once-strong companies evaporated. Landlords began to compete with each other and the available subleases. The result was spiking vacancy rates. By the end of 2009 rents fell to 2005 levels.
As a result, tenants now have the greatest selection of office space opportunities in years. Almost every office building has available space. Tenants looking for large blocks of space, (20,000+ square feet) can now choose from at least 20 different buildings between Lake Success and Melville. Furthermore, the growing list of available subleases puts continuing pressure on asking rents.
It is a very good time to be a tenant…but like all good times this one won’t last forever. So contact me, your Long Island tenant-rep specialist, to find out how your company can take advantage of this Good Time.