Arrow to sublease Melville space
The Arrow Electronics building in Melville (June 3, 2004) Credit: Newsday, 2004 / Michael E. Ach
Arrow Electronics Inc., which announced Tuesday it plans to move its headquarters from Melville to Englewood, Colo., is seeking to sublet 34,783 square feet of its present headquarters at 50 Marcus Dr.
The company has been looking to sublet space in its building for more than a year, and the plan is not related to this week's announcement of the headquarters move, said John Hourigan, spokesman. The property is being promoted on LoopNet.com, a commercial real estate site.
Arrow's lease on that property runs out in 2013, the company disclosed in a filing with the Securities and Exchange Commission. When asked what its plans are for the property, Hourigan said it is "evaluating the best use of the Marcus offices within the context of our other properties in the Long Island area."
Arrow also has an office in Hauppauge and the Nu Horizons Electronics subsidiary in Melville.
The news this week that Arrow, a distributor of electronic components and computer equipment and a member of the Fortune 500, is moving its headquarters was unsettling to some Long Island development officials and businesspeople. Arrow said Tuesday the shift wouldn't reduce its 550 employees on Long Island.
It's not surprising that it's taking time for Arrow to sublet its space, said David Pennetta, executive vice president of Oxford & Simpson Realty Inc. in Jericho. "Melville is one of the softest markets on Long Island, with a vacancy rate around 15 percent," he said, compared to about 11 percent for all of Long Island.
In December 2000 Arrow, which was then headquartered in its own building at 25 Hub Dr. in Melville, leased the entire 163,762-square-foot Marcus Drive building from RXR Corp.
Former employee Ed LaGrassa, who was Arrow's vice president for real estate in 2000, told Newsday then the company's goal was to "split our population between the two buildings and have enough space for future growth in both." Arrow later sold the Hub property to KeySpan.
When asked why Arrow is looking to sublet the space, Hourigan said Arrow has to "align our business to the needs of our customers on a daily basis," including real estate holdings.
Space that "you needed 10 years ago you may not need 10 years hence," Hourigan added.
