1) The Long Island office market saw an increase in leasing activity and a decrease in vacancy rates in Q1 2012. Leasing totaled 316,693 square feet, up 6.8% year-over-year, while the overall vacancy rate fell to 16.9%. 2) Rental rates remained steady, increasing slightly to $29.86 per square foot. Nassau County saw the largest decrease in vacancy, falling from 17.4% to 16.2% due to strong leasing activity of 210,000 square feet. 3) While the market continues to improve, caution remains due to ongoing economic uncertainty, so vacancy rates and rental rates are expected to remain stable through 2012.

1. MARKETBE
EAT
OF
FFICE S
SNAPSH
HOT
LO
ONG ISLA
AND, NY
Y Q1 2012
2
A Cu
ushman & Wak
kefield Researc Publication
ch
ECONOMIC OVERVIEW growth for Long Island companies rem cautious ab
h d, main bout the
Since last year, the private sector job count on uncerttainty of the eco
onomy. As so, vacancy rates sho ould remain
Long Island incrreased by 20,800 jobs, while the
0 e somewwhat flat, decreasing slightly thro
oughout the couurse of 2012.
unemployment rate remained u unchanged at Overall weighted aver rage rental rates will remain stea and gradually
ady y
7.8%. Professio and business services saw
onal increas as Long Island continues its r
se d recovery.
the greatest inc
crease in employ yment, adding
9,800 jobs. Health care and social ass sistance remaine a vigorous
ed
indust adding 5,000 jobs over the past year. Altho
try, 0 p ough the Long STAT ON THE G O
TS
Island market continues to show impr rovement, Gove ernment and 1Q11 1Q12 Y-O-Y 12 MONTH
H
CHANGE FORECASTT
Retail sectors remaine weak, accord to the New York State
ed ding
Depar rtment of Labor.. Overa Vacancy
all 19.2%
% 16.9% -2.3pp
LEASING & VACAN
NCY Direct Asking Rents (psf
t f/yr) $29.64
4 $29.86 0.7%
The fir quarter of 20 closed with overall leasing t
rst 012 transactions YTD L
Leasing Activity (sf
f) 296,452
2 316,693 6.8%
totalin 316,693 squar feet (sf), representing a 6.8% year-over-year
ng re
increaase. The only off deal over 20
ffice 0,000 sf this qua
arter was North
Shore LIJ’s 50,967-sf s
sublease at 3 Huuntington Quadr rangle in Melville
e. DIRE
ECT RENTAL V VACANCY RATES
VS. Y
Follow that was a 1
wing 19,500-sf lease in
nked by USI at 3 Earle
333 $36.00
$ 18.0%
Ovingt Boulevard in Uniondale.
ton n
$32.00
$ 16.0%
In add
dition, there wer two significant renewals that w
re t were not $28.00
$ 14.0%
psf/yr
included in leasing act
tivity. The larger of the two was Morgan
r s
$24.00
$ 12.0%
Stanley’s 50,359-sf ren
newal expansion at 58 South Service Road in
n
Melville, followed by S
Sbarro’s 30,000- renewal at 40 Broadhollow
-sf 01 $20.00
$ 10.0%
Road a in Melville.
also $16.00
$ 8.0%
The overall vacancy ra is currently at 16.9%, down 4.5% from
ate a 2008 2009 2010 2011 1Q12
4Q11. The largest dec
. crease in vacancy from last quar occurred in
rter DIRECT GROS RENTAL RATE
SS DIRECT V
VACANCY RATE
Nassau County from 17.4% to 16.2%, with a leasing a
, activity total of
210,1000-sf. The Cent Nassau subm
tral market was responsible for 49.3%
of the total leasing act sland. Subsequently, Central
tivity for Long Is OVER
RALL OCCUP IER ACTIVITY
Y
Nassau vacancy fell by 3.8 percentage points from 18.6% to 14.8%.
y e
2.
.0
RENT & ABSORPT
TS TION
1.
.5
The overall weighted average rental rate on Long Isla is $29.55 per
r and r
msf
square foot (psf), a 1.4 increase from last year’s $29
e 4% m 9.15 psf. and a 1.
.0
0.2% ddecrease from la quarter’s $29 psf. Nassau County’s
ast 9.62 u
0.
.5
0.05
overal weighted avera rental rate is currently $31.17 psf while
ll age s
1.6
0.1
19
1.9
1.5
0.3
1
0
0
0
Suffolk County’s over weighted ave
k rall erage rental rate is $27.17 psf. 0.
.0
2008 2009 2010
2 2011 2012 YTD
The fir quarter of 20 closed with a positive overa absorption of
rst 012 all f
234,83
31-sf. 1Q12 rep presented the fift straight quart of positive
fth ter LEASING A
ACTIVITY USER SALES ACT
TIVITY
absorpption for Long Is
sland.
OUTLOOK
There are several larg leases current in progress w
e ge tly which will give
the se
econd quarter a healthy start. Despite last year’ substantial job
D ’s b
Cushm & Wakefield o Long Island, Inc.
man of The market terms and definitions in this report are based on NAIOP standards No warranty or represent
d
completeness of the in
e s. tation, express or implied, is made to the accuracy or
nformation contained herein, and same is submitted subje to errors, omissions, chan of price, rental or other conditions, withdrawal
ect nge
401 Broad Hollow Road
d without notice, and to any special listing conditions imposed by our principals.
s
Melville, NY 11747 © 2012 Cushman & W
Wakefield, Inc. All rights reser
rved.
www.cushmanwakefieldd.com/knowledge

2. LONG ISLAND, NY
SUBMARKET INVENTORY OVERALL DIRECT YTD LEASING UNDER YTD YTD DIRECT YTD OVERALL OVERALL WTD. AVG DIRECT WTD.
VACANCY VACANCY ACTIVITY CONSTRUCTION CONSTRUCTION NET NET ALL CLASSES GROSS AVG.
RATE COMPLETIONS ABSORPTION ABSORPTION CLASS A GROSS
RATE RENTAL RATE*
RENTAL RATE*
Western Nassau 5,930,002 18.2% 17.1% 35,534 0 0 (163,232) (149,641) $33.03 $33.68
Central Nassau 8,646,709 14.8% 13.3% 156,207 0 0 361,414 333,596 $30.55 $33.34
Eastern Nassau 5,759,037 16.2% 13.6% 18,359 0 0 (16,810) 11,912 $29.88 $37.96
NASSAU COUNTY 20,335,748 16.2% 14.5% 210,100 0 0 181,372 195,867 $31.17 $34.00
Western Suffolk 7,669,448 18.6% 17.5% 89,033 0 0 (2,102) 18,854 $28.85 $30.70
Central Suffolk 4,306,409 17.1% 14.7% 17,560 0 0 20,110 20,110 $23.95 $27.40
SUFFOLK COUNTY 11,975,857 18.0% 16.5% 106,593 0 0 18,008 38,964 $27.17 $30.17
TOTALS 32,311,605 16.9% 15.2% 316,693 0 0 199,380 234,831 $29.55 $32.68
* RENTAL RATES REFLECT ASKING $PSF/YEAR
MARKET HIGHLIGHTS
Significant 1Q12 Lease Transactions SUBMARKET TENANT/BUYER BUILDING CLASS SQUARE FEET
3 Huntington Quadrangle, Melville Western Suffolk North Shore LIJ B 50,967
333 Earle Ovington Boulevards, Uniondale Central Nassau USI A 19,500
1122 Franklin Avenue, Garden City Central Nassau Bank Direct Capital Finance B 12,260
330 Old Country Road, Mineola Central Nassau Nationwide Mutual Insurance Co. A 11,409
Significant 1Q12 Sale Transactions SUBMARKET BUYER PURCHASE PRICE / $PSF SQUARE FEET
2410 North Ocean Avenue, Farmingville Central Suffolk Soundview Realty Group $4,600,000 / $10.20 psf 45,650
333 North Broadway, Jericho Eastern Nassau Malachite Group Ltd. $1,550,000 / $37.80 psf 41,000
3001 Expressway Drive North, Islandia Western Suffolk Damianos Realty Group, LLC $3,850,000 / $96.25 psf 40,000
Significant 1Q12 Construction Completions SUBMARKET MAJOR TENANT COMPLETION DATE SQUARE FEET
** 2200 Northern Boulevard, East Hills Western Nassau Kliger-Weiss Infosystems 1Q12 315,000
Significant Projects Under Construction SUBMARKET MAJOR TENANT COMPLETION DATE SQUARE FEET
*** S. Service Road / Walt Whitman Road, Melville Western Suffolk Canon 3Q12 668,300
* RENEWAL - NOT INCLUDED IN LEASING ACTIVITY STATISTICS
** RENOVATION - NOT INCLUDED IN CONSTRUCTION STATISTICS
*** OWNER OCCUPIED - NOT INCLUDED IN VACANCY STATISTICS
Cushman & Wakefield of Long Island, Inc. The market terms and definitions in this report are based on NAIOP standards.
401 Broad Hollow Road No warranty or representation, express or implied, is made to the accuracy or completeness of the
information contained herein, and same is submitted subject to errors, omissions, change of price, rental or
Melville, NY 11747 other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
www.cushmanwakefield.com/knowledge © 2012 Cushman & Wakefield, Inc. All rights reserved.