Long Island Commercial Real Estate Market Update – Q1 2025
The Long Island commercial real estate market posted a strong start to 2025, with more than $464 million in sales volume recorded in the first quarter alone. Activity was spread across multiple property types, signaling a healthy level of investor interest despite some softening in pricing compared to asking levels.
Across the region, there were 302 closed sales totaling 2.2 million square feet. On average, properties sold at an 11.2% discount to their asking price, reflecting ongoing negotiations between buyers and sellers in a shifting market environment.
Sector Performance
The largest share of activity was concentrated in the office and industrial sectors, which accounted for $101 million and $103 million in sales volume, respectively. Retail properties followed closely at $93.3 million, showing that demand remains steady for well-located shopping centers and freestanding retail on Long Island.
The multi-family sector recorded $14.2 million in trades, while land sales totaled $13.9 million, highlighting selective development opportunities. An additional $138 million in miscellaneous assets (hotels, senior housing, special purpose, etc.) changed hands, further boosting overall transaction volume.
Major Deals of Q1
Two standout transactions defined the quarter. The largest sale was a hotel portfolio in Ronkonkoma that sold for $100 million, underscoring strong demand for hospitality assets near Long Island’s transportation hubs. On the leasing front, the largest lease of Q1 was signed by Jet Parts Engineering, which committed to 55,325 square feet in Hauppauge. This deal highlights the resilience of the industrial and flex markets, where aerospace, logistics, and technology tenants continue to drive demand.
Market Outlook
While pricing adjustments remain part of the current landscape, the first quarter numbers confirm that Long Island commercial real estate continues to attract capital across all sectors. Investors remain focused on income-producing properties, while users are still securing quality space in strategic locations.
For property owners, these conditions reinforce the importance of understanding where their asset stands in today’s market. Even a modest adjustment in pricing strategy can make a major difference in achieving a successful sale.
At North Village Realty, we specialize in seller representation and provide tailored strategies to help maximize the value of your property. If you are considering selling or simply want to understand your property’s current position in the market, contact us today for a complimentary Broker Opinion of Value (BOV).
Article by Tom Bigansky, Managing Broker – North Village Realty LLC
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