Office Space Statistics/Market Information

Western Nassau

Western Nassau's northern tier, namely Great Neck and Manhasset, is predominantly tenanted by small professional firms drawn to the area's "downtown" retail shopping and upscale restaurants. Although Great Neck is notable for its automobile congestion and related scarcity of parking, these disadvantages are compensated by proximity of the Long Island Railroad providing convenient access to Manhattan.

The southern tier, namely Lake Success/New Hyde Park, adjoins the Cross Island and Northern Parkways as well as the Long Island Expressway. Criscrossed by these major arterial highways, Lake Success/New Hyde Park generally attractlarger, high-density employers eager to access Nassau's and Queen's labor pools. Historically, this market's vigor has been sustained by the healthcare industry's ongoing demand for office space anchored by Long Island's North Shore-LIJ Health System that employs over 37,000.

Current Market Conditions:
Once again, the Western Nassau office sub-market continues to have the lowest vacancy rate (8.0%) of all Long Island office markets. Unfortunately, whereas in 2008 there was a net absorption of approximately 92,000 square feet, there was a reversal in 2009 whereby the net absorption flipped to a negative 42,000 square feet. This change is also reflected in the weighted average rental rate that slipped to $32.67 from last year's $34.02 or a 4% decrease. Unlike prior years when this submarket could depend on having excess space mopped up by the healthcare industry, the precarious state of NYS's budget may preclude rental activity from this sector.