Outlook good for Brooklyn, Queens, Nassau & Suffolk.

The latest Greiner-Maltz Company Brooklyn, Queens, Nassau & Suffolk Business Real Estate Report, which summarizes 1993 real estate activity and places It in historical perspective, shows that the industrial and commercial property market in this area has remained relatively stable in the past year.

With 13,983,000 square feet of industrial space on the market at the end of the year in Queens, the availability rate was 12.49 percent, down slightly from 12.83 percent the year before. Brooklyn had 11,200,000 square feet, or 14.14 percent, of its space available at the end of the year, as compared to 12.91 percent in December 1992. Transactions involving over 7,818,000 million square feet were completed in Brooklyn and Queens in 1993, yet at year end over 25,000,000 square feet was still available.

In Nassau, 6,809,713 square feet of industrial space was available, a decrease of 8.98 percent from the previous year. In Suffolk, 8,782,400 square feet available marked a decrease of 19.38 percent.

Richard Maltz, SIOR, company chairman and head of the Long Island City office, notes that "Our figures, plus other economic data, can substantiate a generally optimistic view if general conditions continue to support increased business growth. The pattern of completed sales indicates that the low point has been passed. Those who have been waiting for the lowest prices or the best terms have already waited too long. In six months, they will have once again missed their opportunity."

Greiner-Maltz Company, Inc. has offices in Long Island City and in Woodbury, from which its staff provides full real estate services to Brooklyn, Queens, Nassau, and Suffolk. While best known as specialists in industrial property, the firm also handles office leasing, and has established a new retail division. In addition to brokerage and exclusive representation, the Greiner-Maltz Company provides property management, appraisal, consultation, and other real estate services. The firm has been issuing business reports and real estate surveys since 1973, based on increasingly sophisticated computerized data bases, thereby providing accurate information on current conditions with historical perspective.

Queens has been experiencing an immense inflow of immigrants, many bringing entrepreneurial skills and capital, an important factor in the area's upswing. Many new businesses smart in small units and grow to larger quarters, accounting for a sizable percentage of business activity. The long-awaited development of the Hunters Point waterfront area is coming closer, with the organization of new public agencies and designation of developers. The City Planning Department has recommended rezoning of Long Island City to create what would be New York's fourth official central business district. Another set of plans include expansion of the commercial area of Flushing. While there will be a great deal of discussion and change before either plan is finalized, some investors and businesses will be taking measures now to anticipate future growth.

In Brooklyn, the diversity of population in the area promotes specialization. Thousands of small firms provide for the needs of ethnic groups, by importing, manufacturing, distributing and retailing special food products, and food in general is one of the important industries in the borough. Units under 100,000 square feet constitute 76.5 percent of the inventory in Brooklyn and 30.9 percent of the available space. Government, public agency, and utility programs as well as eager landlords provide inducements and special facilities for businesses to locate in the area. The borough has had a great deal of activity, predominantly in small units: more deals (59) were done than at any time since the second quarter of 1991. The most problematic spaces are those for mid-sized businesses - units of 75,000 to 99,000 square feet, where the total inventory consists of 56 units, of which 14 are now available. Although no deals were consummated in this size range in 1991 or 1992, four were completed in 1993.

Nassau and Suffolk counties experienced increased levels of activity in the industrial real estate market and a substantial decrease of 15.15 percent in available space by the end of 1993. For the combined area, the decrease of 2,783,136 square feet is the largest reduction since Greiner-Maltz began charting activity in 1978.

In the Nassau and Suffolk county office market, there is a slight reduction in availability rates. Perhaps the most significant factor is the small number of new buildings under construction and recently completed. The availability rate for all completed buildings is 18.01 percent, as compared to 19.14 percent at this time last year. Top asking rentals have come down 12.5 percent in Nassau and 8 percent in Suffolk.

Many Long Island businesses determined that 1993 was the time to take advantage of converging trends in the economy. Most of the significant transactions in Nassau and Suffolk Counties involved the sale of large properties.

William Greiner, SIOR, Greiner-Maltz president, who heads the Woodbury, Long Island office, attributes this to three factors:

* Big buildings, many of them on the market for a long time, came down in price.

* Financing became more favorable: terms improved, and lenders were more willing to finance property sales.

* Business improved somewhat; forecasts have been optimistic, and more decision-makers were ready to take cautious action rather than continue to wait for further downturns in pricing or financing terms.

He adds that "Overall business figures for Long Island are quite good, and we anticipate a stronger 1994. In the past year, Long Island publicly-traded companies rose by 28 percent, compared to an increase of 14.4 percent for all stocks on the Dow Jones. Our own firm has participated in a wide variety of transactions for the diversity of businesses that serve the 2.6 million population of these two counties and beyond them to the region and the nation. Despite problems in several industry sectors, strong economic development efforts, a skilled labor market, and the ability to select excellent space at favorable terms should provide the foundation for growth."

Richard Maltz summarizes the results of the year's survey: "The slight improvement we see in conditions from 1992 to 1993 should be the signal for a stronger recovery in 1994. We have found that small business is the first to act on trends, and based on past experience, we can expect to see larger firms becoming more active again. Most businesses are aware of the importance of their real estate decisions, and should solidify their positions by dealing with knowledgeable professionals who have a good sense of the market."