Market Trend: Long Island's Office Vacancy Decreases to 8.3%

The Long Island Office market ended the first quarter 2012 with a vacancy rate of 8.3%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 611,134 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 778,429 square feet.

Tenants moving into large blocks of space in 2012 include: General Services Administration (GSA) moving into 120,000 square feet at Two Metrotech Ctr; Suffolk County Department of Health moving into 63,402 square feet at 3500 Sunrise Business Ctr; and Deutsche Bank moving into 54,464 square feet at 4 Metrotech Ctr.

Rental rates ended the first quarter at $26.47, a decrease over the previous quarter.

A total of two buildings delivered to the market in the quarter totaling 146,700 square feet, with 1,024,946 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national office vacancy rate, which decreased to 12.2% from the previous quarter, with net absorption positive 14.79 million square feet in the first quarter.