MARKET INSIGHTS · LOCAL TRENDS · FUTURE OPPORTUNITIES
The South Shore market entered 2026 with disciplined, but real activity. While underwriting remains conservative, January confirmed that capital is still moving for well-located assets with stable income or clear owner-user appeal. Buyers are continuing to return back into the market month over month.
Office Activity
Owner-user demand continues to drive liquidity in the office market. The former Bank of America building at 2300 Grand Avenue in Baldwin sold for $2.5 million to JAG Law Group and will undergo a full modern renovation. North Village Realty represented the buyer in this transaction. This sale reflects a growing trend across the South Shore: professional users choosing ownership while prices remain favorable.
Industrial Activity
Industrial remains one of the most resilient sectors serving the South Shore. In Copiague, an affiliate of Wellwood Cabinetry acquired the 32,578 SF building at 590 Oak Street for approximately $5.5 million, relocating operations from Lindenhurst. This transaction reinforces a key theme in today’s market: end users are actively purchasing industrial buildings to secure long-term operational control, helping support pricing for functional assets compared to pre-covid levels.
Retail Activity
Retail continues to favor proven corridors and established tenants. Tony’s Tacos signed their 6th Long Island location at Levittown Mews on Hempstead Turnpike that will be 4,000 SF at a newly constructed pad site, highlighting ongoing expansion by service and food concepts willing to pay for visibility and traffic. The project is being done by Breslin Realty Development, which owns and manages the shopping center.
Land & Development Activity
Suffolk County Economic Development and Planning has moved its Transit-Oriented Development (TOD) program into the execution phase in early 2026, targeting properties within walking distance of LIRR stations in Amityville, Babylon, and Lindenhurst. Efforts are focused on rezoning and redeveloping underutilized commercial parcels, surface parking lots, and older retail or office buildings to support higher-density mixed-use development with residential, ground-floor retail, and structured parking. For owners, the key implication is that station-adjacent properties are increasingly being valued based on redevelopment potential rather than existing income, as entitlement activity accelerates despite slower ground-up starts due to construction and financing costs.
Multifamily & Mixed Use Activity
This remains a primary target for capital, especially with a value-add component or well built. North Village Realty represented the seller and closed last month on 10-12 Railroad Ave in Bethpage within the low 6% cap range with capital improvements needed.
Fairfield Properties, one of Long Island’s most recognizable multifamily owners with 15,000+ units, has completed a sale and preliminary IDA approval for two apartment buildings in Valley Stream totaling 60 units for approximately $33.4 million. The transaction included the transfer of existing PILOT incentives. The Hempstead Industrial Development Agency (IDA) gave a preliminary green light last week.
49 N Central Ave, Valley Stream
"The Promenade at Central"
43 Units built by Kay Development Group in 2020
50 Roosevelt Ave, Valley Stream
"The Vantage"
17 Units built by Kay Development Group in 2023
Bottom Line for Property Owners
Buyers and tenants are proceeding with intent, focusing on assets that offer durability, operational control, or long-term income stability. Capital is not chasing speculative stories; it is being allocated to properties where pricing, fundamentals, and use align in today’s interest rate environment. This has resulted in continued liquidity for the right assets, while less functional or over-leveraged properties face longer decision cycles.
Several themes are clearly defining the last month of activity:
• Owner-user demand continues to drive liquidity in office and industrial, as businesses seek control over occupancy costs and long-term operating certainty.
• Retail leasing remains strongest for established tenants along proven corridors, particularly food, service, and convenience-driven uses.
• Multifamily remains a priority for major Long Island owners and institutional capital, supported by persistent housing demand and limited supply.
Thinking About a Sale?
North Village Realty specializes in representing commercial property owners on Long Island’s South Shore. If you are weighing a sale in the next year or two, the conversation is worth having early.
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January 2026 newsletter archive. Property availability, development plans, and market conditions reflect this edition and may have changed.