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News release

MELVILLE, NY

Nassau County Posts Lowest Overall Vacancy Rate in More Than 5 Years

Nassau County’s Class A product buoys Long Island market, recording 473,800 SF of positive net absorption in 2015


MELVILLE, N.Y., February 4, 2016 — In the final quarter of the year, Nassau County posted the lowest overall vacancy rate in more than four years, according to JLL. The county recorded an overall vacancy rate of 14.2 percent in the fourth quarter of 2015, compared with 15.9 percent one year earlier, equaling a 10.7 percent year-over-year decrease in Nassau County’s overall vacancy rate.

The significant decrease in Nassau County’s overall vacancy rates was fueled by Long Island space users flocking to the county’s high-end product. Class A buildings in Nassau County recorded 473,800 square feet of positive net absorption in 2015.The Nassau County Class A vacancy rate subsequently declined four percentage points from 2014 to less than 12.0 percent in 2015.

“Long Island’s high-end office buildings remained the product of choice for office tenants,” said Raymond Ruiz, Executive Vice President and head of the firm’s Long Island office. “Companies have been migrating to the market’s better spaces to help retain and recruit new employees. We expect this flight-to-quality to increase, with greater space absorption and rising asking rents to follow suit.”

Much of the overall leasing activity in the fourth quarter centered on Eastern Nassau County, helping the area to claim the largest volume of positive net absorption, 50,816 square feet, of any Long Island submarket. Noteworthy transactions completed in Eastern Nassau County this quarter included South Nassau Communities Hospital leasing nearly 61,000 square feet at 2020 Wantagh Avenue; Northwell Health, formerly known as North Shore-LIJ Health System, signing for 52,400 square feet at 330 South Service Road; and Arthur J. Gallagher & Co. taking 21,000 square feet at 1 Jericho Plaza.

The only project under construction on Long Island in the fourth quarter involved a new 116,545-square-foot headquarters being developed for Dealertrack Technologies at 3400 New Hyde Park Road in North Hills.

Highlights of the fourth quarter of 2015 include:

  • Long Island’s Class A vacancy rate fell to 14.8 percent in the fourth quarter of 2015, a 12.9 percent decline from 17.0 percent one year ago. Nassau County’s Class A vacancy rate declined to 11.7 percent this quarter from 15.7 percent at year-end 2014. However, Suffolk County’s Class A vacancy rate rose to 20.2 percent this quarter from 19.5 percent one year ago.
  • Average overall asking rents for Class A space on Long Island decreased to $29.08 per square foot from $29.93 per square foot one year earlier. Nassau County Class A rents fell to $31.51 per square foot this quarter from $32.21 per square foot at year-end 2014. Suffolk County Class A rents increased slightly to $26.59 per square foot this quarter from $26.51 per square foot one year ago.

For more news, videos and research resources from JLL, please visit the firm's U.S. media center Web page. Bookmark it here: http://bit.ly/18P2tkv.

JLL is a leader in the New York tri-state commercial real estate market, with more than 2,000 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2014, the New York tri-state team completed approximately 22.8 million square feet of lease transactions, arranged investment sales transactions valued at more than $5.4 billion, managed projects valued at $7.6 billion, and oversaw a property management, facilities management and agency leasing portfolio exceeding 163 million square feet.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $56.4 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.​