Long Island Office Absorption Turns Positive in Q3 

Long Island’s real estate market revealed notable trends in the third quarter, according to Q3 office and industrial stats from Cushman & Wakefield.  

In the office sector, the overall vacancy rate slightly decreased by 10 basis points to 14.4%, mainly due to improvements in Nassau County. Despite a slower leasing quarter, year-to-date deal volume matched last year’s figures, indicating ongoing demand for Class A properties. Quarterly net absorption turned positive for the first time since 2021, largely due to the removal of sublease space from the market. 

Conversely, in the industrial market, the direct average asking rents declined by $0.35 psf, settling at $17.56 psf, influenced by leasing high-quality spaces. The vacancy rate increased to 3.6% due to several large spaces becoming available. However, year-to-date deal volume remained robust at 2.8 million square feet, with the Central Suffolk submarket leading.