Long Island Industrial Figures Q1 2026

Long Island’s industrial market softened in Q1 2026 as demand weakened and vacancy levels edged higher. Net absorption declined quarter-over-quarter, reversing from a modest 55,000 sq. ft. gain in Q4 2025 to a 220,000 sq. ft. loss, which pushed the vacancy rate up 40 basis points (bps) to 7.7%. This increase was driven by 137,000 sq. ft. of newly delivered space that has yet to be leased, along with the return of several large blocks of space to the market. Despite softer occupancy conditions, pricing remained relatively resilient. Average asking rents declined 0.7% from the prior quarter to $18.58 per sq. ft., but remained 1.5% above year-ago levels.