Eastern Suffolk
Statistics
First Quarter, 2010 |
Overall Vacancy Rate: 21.1%
|
Sq. Ft. Surveyed: 1,200,000
|
Average Base Rent: $19.19
(plus tenant electricity)
|
Eastern Suffolk remains an emerging office market with a modest inventory of class-B office space. Anchored by Stonybrook University, the University along with the Brookhaven National Laboratory serve as magnets for high-tech companies.
Since this submarket has a comparatively lower population density, its need to import workers had previously been a big economic disadvantage. With increased unemployment, this has not been a problem. Even though any expansion of the office inventory must wait until the population of white collar workers catches up, the demand for inexpensive office space will help mop up some of the available office space.
Current Market Conditions:
Of all the Long Island office sub-markets, eastern Suffolk has had the greatest drops in vacancy rates from a high of 26.9% a year ago, to today's 21.1%. Nonetheless, rental rates remain flat at $19.19. It is very possible that a "white swan," in the form of a governmental agency, i.e., The Department of Homeland Security, might decide to perch here. If that happens, expect to see another dramatic decrease in vacancy.
