Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Long Island Summer 2022: Industrial Construction Pipeline Surges

Dimitri Mastrogiannis • 9/8/2022

With increasing constraints on Long Island’s industrial supply, the construction pipeline remained robust. The increased demand for Class A product has resulted in developers rapidly breaking ground on a new wave of projects. In total, three new development projects totaling 572,000 square feet (sf) broke ground this quarter, bringing the total pipeline to just under 1.0 million square feet (msf). Although 5.2% of the projects under construction have been pre-leased, it is anticipated that many projects will lease prior to completion as tenant demand persists. Year-to-date (YTD) 2022 completions reached 1.3 msf, of which 53.3% were occupied upon completion. Four warehouses were delivered so far this year, with the largest being a 599,983-sf speculative (spec) project at 235 Pinelawn Road in Melville. The property, which was developed by Hartz Mountain, was delivered vacant while the other three warehouses were pre-leased before completion. 


The lack of vacant land in Nassau County has caused developers to search for opportunities further east on Long Island. Historically, the Eastern Suffolk submarket has had little warehouse development, with just one new completion above 50,000 sf since 2019. Currently, there are three new buildings under construction in this submarket totaling 500,000 sf. The largest is a two-building development by AVR Realty & Scannell Properties in Shirley, totaling 400,000 sf and slated for completion in the first quarter of 2023. Additionally, in the Central Suffolk submarket, Bristol Group is developing a 178,000-sf spec building in Commack and Rockefeller Group is developing a 172,000-sf spec building in Bay Shore. Finally, Brookfield is developing the only building currently under construction in Nassau, a 102,000-sf spec building in Garden City. 


Long Island’s development pipeline continued to expand as institutional groups want to capitalize on the immense rent growth and demand in the market. Most of the pipeline is slated for completion by third quarter of 2023 and new developments are breaking ground quarterly. Currently, the proposed pipeline has surpassed 12 msf with over two-thirds of that located in Eastern Suffolk. Several projects in Nassau and Western Suffolk include redevelopments of outdated office and manufacturing buildings as acquiring vacant land has become virtually impossible. Amid the uncertain economic backdrop, market fundamentals remain strong. The record low unemployment rate coupled with climbing asking rents will further attract new players into the market, such as Venture One, who purchased its first development site on Long Island in 2021 and now has several proposed projects breaking ground soon. Occupier demand for new construction space is expected to maintain its positive momentum throughout the rest of 2022. 
Insights in your Inbox
Subscribe to the latest local market research, insights and analysis from Cushman & Wakefield across the United States.

Related Insights


Five Fast Facts New Jersey Industrial

Read below or download our Five Fast Facts for more insight into the latest commercial real estate key trends of the New Jersey industrial market.
John Obeid • 8/21/2023

​​Port of NY-NJ Mid-Year 2023 Overview​

Read and download our Mid-year 2023 Port of NY-NJ Industrial overview.
John Obeid • 8/14/2023
Long Island New York


175 Broad Hollow Road, Suite 235
Melville, NY 11747-4711
United States

+1 631 425 1200

Interested in learning more?

Get in touch and we can assist with any additional information you need.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All