Long Island office vacancies fall as workers return and local businesses rebound
According to the company’s analysis, Long Island’s office vacancy rate has dropped to 12.8 percent, falling below 13 percent for the first time in five years.
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A new Cushman & Wakefield report shows office occupancy rising on Long Island, reversing years of pandemic-era vacancies and boosting surrounding communities.
A few years ago, many believed the shift to remote work signaled the end of traditional office life. National data from early 2024 supported that idea, with Moody’s Analytics reporting that the United States had more empty office space than at any time since 1979 due to the rise in working from home.
But a new report from global commercial real estate firm Cushman & Wakefield suggests a different story is unfolding on Long Island.
Rob Kuppersmith, an executive managing director based in Melville, said the region is experiencing one of its strongest periods in years. “So we're at a really low vacancy right now, probably one of the all time lows right now. We're seeing everybody return to the office,” he said.
According to the company’s analysis, Long Island’s office vacancy rate has dropped to 12.8 percent, falling below 13 percent for the first time in five years. Central Nassau is seeing the most significant increase in activity, highlighted by international accounting firm Grassi’s decision to lease 36,000 square feet of office space in Jericho.
The return of office workers is also reshaping the surrounding business landscape. For many communities, the absence of daily commuters created stretches of near-empty office districts. Kuppersmith said the renewed activity is having a broad impact.
“It’s a total trickle effect, right? How it impacts the local delis, the nail salon. You name it, everybody starts using places that are away from their home and it just kind of makes a circle for everybody to start increasing, not just your specific office you're working in, but the surrounding areas,” he said.
He added that the trend is a positive sign for both the regional economy and the direction the market appears to be heading.
The report indicates that Long Island’s commercial real estate sector is stabilizing, with office workers returning and local businesses benefiting from the increased foot traffic.
