Long Island Commercial Real Estate Market Update – Q2 2025
The Long Island commercial real estate market recorded $300 million in sales volume in the second quarter of 2025, with 290 closed transactions totaling 1.4 million square feet. While activity levels remained solid, the average property sold at a 10.6% discount to asking price, underscoring the continued negotiations between buyers and sellers in today’s shifting environment.
Sector Performance
Retail led all sectors with $116 million in sales, highlighting investor demand for well-located shopping centers and freestanding properties.
Industrial assets accounted for $51.7 million, continuing their role as a key driver of activity.
Office properties totaled $34.7 million, reflecting selective buyer interest.
Land sales reached $32.6 million, signaling ongoing appetite for development opportunities.
Miscellaneous assets (hospitality, senior housing, special purpose) contributed $28.8 million, while multi-family transactions added $9.9 million.
Major Deals of Q2
The largest sale of the quarter was the Roslyn Lumber Yard mixed-use property, which traded for $31 million. On the leasing front, Unilever signed a 93,971-square-foot sublease in Farmingdale, marking the quarter’s most significant lease transaction and underscoring the ongoing demand for large blocks of space in key submarkets.
Market Outlook
Q2 performance shows that despite pricing adjustments, Long Island continues to attract capital across all property types. Retail and industrial remain the most resilient sectors, while office and multi-family sales show buyers are being highly selective. For owners, this environment emphasizes the importance of proper positioning and pricing strategy to capture active demand.
At North Village Realty, we specialize in seller representation and provide tailored strategies to maximize your property’s value. If you are considering selling or want to understand your asset’s place in today’s 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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