Finding industrial space in Suffolk County is getting more difficult as the market improves, broker Newmark Grubb Knight Frank reported Tuesday. Vacancies in Suffolk dropped to 4.3 percent in the third quarter, a 0.5 percentage point fall from the year-earlier period.
Meantime, the Nassau market headed the opposite direction as the industrial vacancy rate increased to 7.8 percent from 5.8 percent in the third quarter of 2011.
Asking rents diverged as well, but in the opposite direction. Average Nassau rents increased to $9.98 per square foot, a $1.55 increase. Suffolk rents slipped to $7.97 per square foot, a drop of 23 cents.
Industrial vacancies on Long Island increased in 2008 and plateaued in 2010 before heading back downward last year, Newmark data show.
Chuck Tabone, managing principal at Newmark, said the market is trending in the right direction.
"The free fall of the market has bottomed out, and it's now starting to bounce back upwards," he said.
Tabone attributed market improvements to a perceived revival in the business climate, pent-up demand and economic incentives in Suffolk.