Long Island has become a hub for industrial real estate, with growing demand driven by its proximity to New York City, access to East Coast markets, and robust local economy. The region offers a variety of industrial properties, including warehouses, distribution centers, and manufacturing facilities, making it an appealing area for businesses and investors alike. Here’s a complete guide to industrial real estate on Long Island, including popular areas, market trends, and how Fraser Bond can support your industrial property goals.
Long Island’s industrial property market is rapidly expanding, especially in light of the increased demand for warehousing, logistics, and e-commerce infrastructure. Key benefits of Long Island’s industrial real estate include:
Long Island provides a variety of industrial real estate options suitable for different business needs:
Warehouses and Storage Facilities: Warehouses are in high demand due to the growth of e-commerce. Long Island’s warehouses offer large floor spaces, high ceilings, and loading bays for efficient storage and distribution.
Distribution Centers: Larger than standard warehouses, distribution centers are equipped for rapid turnover of goods. They are ideal for businesses needing access to the NYC metro area and East Coast markets.
Light Manufacturing Units: These units are designed for smaller-scale production, assembly, and repair work, making them suitable for businesses that don’t require heavy machinery or extensive manufacturing infrastructure.
Cold Storage Facilities: For businesses in food production or pharmaceuticals, Long Island offers cold storage units with climate control to preserve temperature-sensitive goods.
Flex Space/Hybrid Units: These spaces combine office and warehouse or workshop areas, making them versatile for businesses needing mixed-use functionality.
Industrial properties are concentrated in specific areas across Long Island, each offering unique benefits:
Hauppauge Industrial Park (Suffolk County): Hauppauge is one of the largest industrial parks in the northeastern US and provides a range of industrial spaces for manufacturing, warehousing, and office use. Its location along the Long Island Expressway makes it a strategic choice for businesses needing easy access to New York City.
Farmingdale and Melville (Nassau County): Known for warehousing and distribution centers, these areas offer excellent transport links and proximity to New York City. Melville, in particular, has modern facilities and high-quality infrastructure for larger businesses.
Riverhead (Eastern Suffolk County): This area offers more affordable industrial properties and is appealing for businesses focused on agriculture, food processing, and storage.
Brookhaven and Ronkonkoma (Central Long Island): Located near major highways, these areas offer diverse industrial spaces and are popular for both manufacturing and distribution due to their mid-island location, which provides access to multiple markets.
Syosset and Plainview (Nassau County): Located near the border of Nassau and Suffolk counties, these areas provide light industrial units and flex space, ideal for businesses needing smaller or mixed-use properties.
The industrial real estate market on Long Island has seen several key trends:
Increased Demand for Warehousing: The e-commerce boom has driven demand for warehousing and distribution space, leading to lower vacancy rates and increased rental prices across Long Island.
Rising Rental Rates: Due to high demand and limited space, rental prices for industrial real estate on Long Island have been steadily increasing. New developments are underway to meet this demand, but space remains competitive.
Shift Toward Cold Storage and Flex Space: The growth of online grocery delivery and pharmaceuticals has increased demand for cold storage. Similarly, flex spaces that combine office and warehouse or workshop areas are increasingly popular among small businesses and startups.
Sustainability Focus: Many new industrial developments on Long Island are incorporating sustainable practices, such as energy-efficient lighting and green building certifications, which attract tenants looking for environmentally friendly spaces.
Development Constraints and Zoning Challenges: Due to zoning restrictions and limited available land, new industrial developments can be challenging. This has led to repurposing older buildings and converting retail spaces into industrial facilities.
Industrial real estate prices on Long Island vary based on location, size, and property features. Here is an overview of average rates:
Rental Rates: Monthly lease rates for industrial properties on Long Island typically range from $15 to $25 per square foot annually, depending on the location and property type.
Sale Prices: Industrial units generally sell between $150 and $300 per square foot. High-demand areas like Hauppauge and Melville may see higher prices due to their accessibility and proximity to major highways and NYC.
When evaluating industrial properties on Long Island, consider the following factors:
Location and Accessibility: Proximity to major transport routes, including highways and ports, is crucial for logistics-focused businesses. Areas close to the Long Island Expressway or rail connections may offer competitive advantages.
Zoning and Compliance: Industrial zoning can vary, so ensure the property’s zoning aligns with your intended use. Some properties may have restrictions on noise, emissions, or certain types of manufacturing.
Property Features and Infrastructure: Depending on your business, look for properties with essential features such as loading docks, high ceilings, power capacity, and climate control if cold storage is required.
Lease Terms and Flexibility: Long Island’s industrial leases often include terms specific to the property type, such as maintenance responsibilities or restrictions on modifications. Fraser Bond can assist in securing favorable lease terms.
Environmental Impact and Regulations: Long Island has specific environmental regulations, especially for properties near residential zones. Compliance with these rules is essential, particularly for manufacturing operations.
Fraser Bond offers comprehensive support for businesses and investors navigating the Long Island industrial real estate market. Here’s how we can help:
Property Search and Acquisition: With extensive local knowledge and access to available listings, we can find the ideal industrial property based on your operational needs and budget.
Market Analysis and Investment Guidance: Fraser Bond provides in-depth analysis of market trends, helping you make informed investment or leasing decisions.
Lease Negotiation and Due Diligence: We assist clients with lease negotiations, ensuring favorable terms and compliance with local zoning and environmental regulations.
Property Management Services: For investors, Fraser Bond offers property management, handling tenant relations, maintenance, and regulatory compliance to streamline property ownership.
1. What is the typical lease term for industrial properties on Long Island?
Lease terms for industrial properties typically range from 3 to 10 years. Some landlords offer flexible options, especially for smaller units or newer businesses.
2. Are there shared industrial spaces on Long Island?
Yes, many industrial parks on Long Island offer shared or flex spaces, allowing businesses to lease smaller sections of larger facilities. Fraser Bond can assist in finding these types of properties.
3. Are there tax incentives for industrial properties on Long Island?
Some areas of Long Island offer tax incentives or grants for industrial developments, particularly those focused on green energy or job creation. Check with local authorities or consult Fraser Bond for more information.
4. How long does the acquisition process take for industrial properties?
The acquisition process varies but generally takes 1-3 months for standard transactions, depending on due diligence, zoning approvals, and financing.
Long Island’s industrial real estate market offers a range of options for businesses and investors, with prime locations for warehousing, logistics, and manufacturing. With its proximity to New York City and robust transport infrastructure, Long Island remains a strategic location for companies looking to optimize distribution and operations. Fraser Bond’s team is here to guide you through every step of the process, from identifying suitable properties to securing favorable lease or purchase terms. Contact us today to start your search for industrial real estate on Long Island.
