Outlook on Long Island’s Industrial Real Estate Market

By David A. Chauvin

Rechler Equity Partners

Plainview, NY: While the COVID-19 pandemic has wreaked havoc on the economy and businesses throughout the country, Long Island’s manufacturing, warehousing and distributing companies have remained strong, robust, and adaptive to the challenges the pandemic, its supply shortage, and the new workplace demands have created.

Long Island’s industrial market has shown its strength and resilience during these unprecedented times. With many of Manufacturing tenants being deemed as essential businesses, they had the ability to continue working while others couldn’t. But now that the economy is opening up again, we are seeing the vast majority of their industrial tenants resuming their operations.

The pharmaceutical, food, manufacturing, e-commerce, and distribution businesses continue to show strength and demand in the industrial sector. We recently renewed Invagen Pharmaceuticals Inc. at 600 Old Willets Path at Hauppauge, NY for 10 years. This pharmaceutical manufacturer and distributor occupies 69,654 SF and has been at the location since 2010. In addition, a new lease with Spectronics Corporation was signed at 265 Spagnoli Road, Melville, NY, a global manufacturer of ultraviolet equipment and fluorescent materials for industrial leak detection and non-destructive testing markets. Spectronics Corporation signed a 10-year lease for 42,065 SF. These two prime examples are indicative of how the manufacturing base continues to be strong and showing no signs of weakness during the COVID pandemic according to Ted Trias, Director of Leasing and Acquisitions at Rechler Equity Partners.

When disruption to a market occurs, those who embrace entrepreneurialism and find creative solutions to innovate are the ones that will always come out on top. Demand for personal protective equipment (PPE) has skyrocketed across the nation and many Long Island manufacturers have answered the call by upgrading or retrofitting their operations to create the sought-after supplies. The global pandemic and the impact on global shipping operations have also caused many manufacturers to rethink where they manufacturer goods all together.

The bottom line is the industrial sector on Long Island is not going anywhere and continues to thrive.

About Rechler Equity Partners

Rechler Equity Partners is the successor company to Reckson Associates, founded over 60 years ago by Donald and Roger Rechler. Today managed by Mitchell and Gregg Rechler, Rechler Equity Partners is the largest owner of commercial real estate on Long Island with a portfolio of assets totaling over 6 million square feet. Rechler Equity offers a wide range of services including leasing, property management, asset management, architecture, construction, environmental, finance, and development.

David A. Chauvin Office: (516) 829-8374 Cell: (516) 410-8832