Western Suffolk
Statistics
First Quarter, 2010 |
Overall Vacancy Rate: 10.9%
|
Sq. Ft. Surveyed: 8,570,000
|
Average Base Rent: $28.02
(plus tenant electricity)
|
The Western Suffolk office market is often times referred to as the Route 110 Corridor, which intersects the Long Island Expressway at the Nassau/Suffolk border.
This sub-market is comprised of over 8.5 million square feet of class-A and class-B office buildings. Financial service companies, especially national and regional insurance carriers, security brokers, audit and consulting groups dominate the tenant base.
Since property taxes are about $1.50 to $2.00 less per square foot, when compared to Nassau County, Western Suffolk has a distinct economic advantage. Combining this financial advantage with the recent expansion of Suffolk's residential inventory, many white collar workers are finding the commute to the Route 110 Corridor more appealing than contnueing on to Nassau County.
The "Rubie's" building, comprised of 140,000 speculative square feet, is now ready for occupants and Canon has announced that it will re-start its 500,000 SF regional headquarters building this April.
Despite the "new" activity, remants from the past will contiue to haunt western Suffolk landlords. For example, in addition the former American Home Mortgage building now being actively leased, landlords will have to contend with increased supply that has resulted from considerable vacanacies throughout the Huntington Quadrangle as well as 201 Old Country Road.
Current Market Conditions:
Unlike prior years, 2009 was not as kind to Western Suffolk. Net absorption was in the "negative" range (46,000 square feet), even though the weighted average rental rate modestly increased to $28.02 from last year's $27.76. Then again, for the astute seeker of Long Island office spac they will find western Suffolk to be "penny for penny, pound for pound" Long Island's best office space value. The overall quality of the building inventory combined with the accessibility to Long Island's work force makes this a very attractive office submarket.
