Integrated Real Estate Services Forecast 2001 Page 13
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increased to 11.6% from 9.6% 1 year ago. Year to date leasing on Long Island totaled almost
2Million square feet. The highest direct weighed average rent was $30.90 per square foot for
Class "A" space in central Nassau and $28.50 for western Suffolk.
In the Manhattan market Class "A" vacancy was 16.2% in 1992 and was 6.8% as of the end
of 1999. Asking rent was $37 in 1992 and $47 as of the end of 1999. During the year 2000
asking rents were above $50 for Class "A" space.
The effect of the dot coms aren't full known or quantified but expected to be ultimately a net
negative. Investors in general are nervous. In NYC the dot coms accounted for almost 1/3+/-
of leasing activity according to various brokers and owners. The dot com companies have cut
over 41,000 jobs since 1999 which will continue to impact office space. There have been
signs of slowing leasing activity.
On Long Island the Route 110 corridor is very active. Plans have been made to turn existing
industrial buildings into office space. Office asking rents are between $25-$26 per square
foot.
Reckson Associates is finishing construction of a 277,000 square foot Class "A" office
building on the Long Island Expressway just west of Route 110 apparently with no signed
tenants.
INDUSTRIAL
The overall industrial market enjoyed a good year. In fact, it is probably the "best" year ever.
It is apparent that the defense conversion of the 1990's has been a success. However, the
National Association of Purchasing Managers 12/2000 reports their purchasing index fell to
47.7% in November from 48.3% in October. An index below 50 signifies contraction. Long
Island has a diverse & balanced economy ( including export opportunities) from a software,
computers and biotech perspective as well as an excellent workforce. If there is a prolonged
slowdown, it will be better than the national averages.
According to the Greiner Maltz report :
The average vacancy rates for 1999 were
County
Average Vacancy Rate
2001 Forecast
Brooklyn
9.2%
8.9%
Queens
7.8%
7.5%
Nassau
10.8%
10.3%
Suffolk
13.0%
12.8%
Average Marketing Times in Months were
