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Vacancies fall on LI.

According to third-quarter figures just released by Cushman & Wakefield of Long Island, the commercial vacancy rate on Long Island dropped an entire percentage point from last quarter to 18.0 percent. This is the lowest rate for Long Island in two years.

"What we're seeing is a continued trend away from the high vacancy rates witnessed at the outset of the decade," said Joseph A. Lagano, managing director of Cushman & Wakefield of Long Island. "Demand is beginning to catch up to available inventory. This is welcome news for the commercial real estate industry."

The most significant drop in the Long Island market occurred in Eastern Nassau County, where the vacancy rate for commercial space fell to 9.3 percent, down 2.5 percent from last quarter and at its lowest point in more than a year. The sharp drop was the result of several substantial transactions, including various leases by major tenants. Down 1.4 percent from last quarter, the overall vacancy rate in Nassau County was 16.3 percent.

"Unlike last quarter's findings," observed Lagano, "third-quarter vacancy rates for Suffolk County were also down." At 21.6 percent, down .2 percent, Suffolk County's vacancy rate still exceeded that of Nassau County by 5.3 percent. Additionally, Central Suffolk was the only area on Long Island where commercial vacancy rates actually rose last quarter, up .3 percent to 20.7 percent.

Average asking rents were relatively unchanged from last quarter, and now stand at about $22.65 per square foot in Nassau County and $18.57 in Suffolk.

Western Suffolk saw the only significant increase in rents, up nearly 50 cents a square foot to $20.46 from last quarter.

"Despite this one increase," Lagano concluded, "there are opportunities throughout both Countries. This is especially true in Eastern Nassau County, where asking rents actually came down by 5 cents a square foot despite the fact that available inventory decreased by 2.5 percent. Prospective tenants will find that landlords are still very willing to negotiate."

Cushman & Wakefield, a commercial real estate services firm, exclusively serves the needs of business in real estate. Its diversified services include office and industrial/technology sales and leasing; financial, appraisal and management services; development consulting; and market research.

Founded in 1917, Cushman & Wakefield is a member of The Rockefeller Group.
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Title Annotation:vacancy rate decreases in third quarter of 1992 in Long Island, New York commercial real estate market
Publication:Real Estate Weekly
Date:Nov 4, 1992
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