LONG ISLAND, N.Y. – JULY 8, 2025 – Cushman & Wakefield today released its Q2 2025 MarketBeat reports, highlighting key trends in the Long Island office and industrial sectors. The data revealed that office market fundamentals continued their recovery, while industrial activity picked up after a slower start to the year. Long Island’s overall office vacancy rate fell to 13.9%, dipping below 14.0% for the first time since year-end 2022, thanks to healthy leasing activity. New leasing volume surged to approximately 487,000 square feet, marking the strongest quarter since Q1 2023, while year-to-date renewal activity jumped nearly 68% year-over-year. The direct average asking rent rose to $34.02 per square foot, driven by increased availability of Class A space.
“We’re seeing a notable rebound in office demand across the region,” said Dimitri Mastrogiannis, Senior Research Analyst. “The combination of lower vacancy, stronger renewals, and a flight to quality suggests a more confident, stable office environment on Long Island heading into the second half of the year.”
The industrial sector also showed signs of reacceleration, with 735,000 square feet of new leasing activity recorded in Q2—65.9% of which occurred in Western and Central Suffolk County. Despite three consecutive quarters of negative net absorption, the vacancy rate held steady at 5.4%.
Direct average asking rents rose to a record-high $18.78 per square foot, driven primarily by sharp increases in Nassau County. The quarter also saw two new projects break ground, including Long Island’s first speculative cold storage facility at 2100 Smithtown Avenue in Ronkonkoma.
Mastrogiannis added, “Long Island’s industrial market remains resilient amid economic headwinds. While uncertainty has delayed some tenants’ decision-making, demand for high-quality, well-located logistics space is clearly still there, as evidenced by elevated rents and new development activity.”