As the first quarter of 2015 recently came to a close we felt it would be helpful to craft for you a report consisting of the Long Island CRE market statistics for Q1 2015.
In this report, we will cover the office, retail, and industrial markets. To most easily digest this information, we will break it down simply by market.
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Long Island Office Sector Performance
First, let’s focus on Long Island’s Office Market. The Nassau and Suffolk County office market ended the first quarter of 2015 with a vacancy rate of 9.6%. This is a very slight increase from the close of the fourth quarter of 2014 where vacancy rates were at 9.5%.
As for rental rates in Nassau and Suffolk County’s office market, at the close of the first quarter of 2015 the rental rates were down from the previous quarter, closing Q1 2015 at $25.22 per square foot. This is a decrease from Q4 2014 of about 1.4%, or $25.58 per square foot.
As for cap rates, these rates are higher now than they were this time last year, and are averaging around 7.29% compared to then at 6.65%.
Industrial Market Performance Q1 2015
Next, we will look at Long Island’s Industrial Market. The Nassau and Suffolk County industrial market ended the first quarter of 2015 with a vacancy rate of 4.6%. This is the same rate as Q4 2014; therefore, we are seeing a steadiness in Long Island’s industrial market.
As for rental rates in Nassau and Suffolk County’s industrial market, in the first quarter 2015 rental rates have increased since the close of the fourth quarter of 2014. Q1 2015 closed with rental rates averaging at $9.84 per square foot, which is a 4.2% increase from Q4 2014, or $9.44 per square foot.
As for cap rates, these rates are less than they were this time last year, and are now averaging around 8.03%. To compare, this time last year cap rates were around 9.18%.
Close Look at Long Island’s Retail Market
Lastly, we have the Long Island Retail Market. The Nassau and Suffolk County retail market ended the first quarter of 2015 with a vacancy rate of 4.4%. This is a decrease from the close of the fourth quarter of 2014 where vacancy rates were at 4.6%.
This proves that Long Island’s retail market is indeed strengthening.
As for rental rates, Q1 2015 rates closed at $24.35 per square foot. This is a slight decrease in rental rates from the close of Q4 2014 where rental rates were at $24.48 per square foot.
As for cap rates, these rates are less than they were this time last year, and are now averaging around 7.06%. To compare, this time last year cap rates were around 7.46%.
