Long Island Commercial Real Estate Activity Reducing
The residential housing market on Long Island flourishing. Although, the commercial real estate industry has taken a hit. The reason behind this is the COVID-19 pandemic.
"The commercial market has too much inventory and no demand," said Jay Orsini, a real estate agent for Douglas Elliman.
A recent report by Avison Young found leasing volume has fallen 42% below the 20-year annual average.
"We had one client looking for about 8,000 square feet and there were over 30 buildings for them to choose from between Nassau and Suffolk [counties]," Avison Young managing director Ted Stratigos said. "And that's a lot."
Although 42% may seem like a lot to overcome, Stratigos said he believes it's just temporary. Folks working remotely is one reason why there are so many vacant office buildings. However, he said companies are not signing long-term leases right now.
Stratigos said companies are slowly bringing back their workers. He believes it could take two years until the commercial market turns back around.
Thank you Jessica Formoso from Fox 5 NY!