Long Island Industrial Figures Q1 2025

The Long Island industrial market experienced an increase in vacancy in Q1 2025, reaching a high of 7.4 percent. It rose 30 basis points (bps) quarter-over-quarter and 120 bps year-over-year. Net absorption remained negative for the third consecutive quarter, totaling 246,143 sq. ft. A record setting amount of new space delivered to the market during 2024, causing vacancy rates to go up and asking rents to remain high despite traditional trends that normally soften pricing. Specifically, the average direct lease rate did go down, quarter-over-quarter, falling $0.30 to $18.44 per sq. ft. That said, rents remained 2% higher than one year ago given the share of available space that was situated in new buildings.