This is practically a Rube Goldberg story. Manhattan prices rise. Residents flee to Brooklyn and Queens. Industrial buildings in those boroughs are converted to residential and retail. New industrial has to be found in Long Island.
Long Island Industrial’s Tommy Tsiolis tells us rents at his company’s industrial properties have risen 10% to 20% this year. Anticipating a squeeze, tenants are seeking early renewals. And LII can’t find enough to buy.
Tommy says industrial buildings in Nassau County are also being converted, many to medical offices like Pall Industries’ 2200 Northern Blvd in Roslyn. Simone and Steel Equities are among the developers doing so. The sudden lack of available industrial has prompted Long Island Industrial to invest $35M in its portfolio, having let some blocks of space lie fallow since the recession. It’s proactively prepping spaces for tenants and renovating the facade at the 123k SF 230 Duffy Ave (above) in Hicksville and doing the same at the nearby 211k SF 600 W John Stl.
LII also is renovating some quiet office properties and reintroducing them now that the market is ready to pay attention. It’s starting with Syosset’s 135k SF 6851 Jericho Tpke and 235k SF 575 Underhill Blvd (above), both of which are getting common area, roof, exterior, and asphalt redos and vanilla box fit-outs. Both properties already have risen from less than half occupied to 80%.
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