Long Island snack maker expands to 117,000-square-foot warehouse
Bethpage Business Park, where snack maker Midnite Snax has expanded its lease to 117,000 square feet. Credit: Rick Kopstein
A Long Island snack food manufacturer is expanding its footprint in a Bethpage warehouse in what brokers expect could be one of the largest industrial leases in Nassau County this year.
Midnite Snax, a manufacturer of candy, snack foods and other gourmet items, has agreed to take 117,000 square feet at 999 South Oyster Bay Rd. in Bethpage, adding 40,000 square feet to its existing footprint, according to brokerage Cushman & Wakefield, which arranged the lease.
The company, founded in 1991, sells popcorn, chocolate and other bakery items that can be used as promotional items for companies and retailers. Its products have been used by brands including Neiman Marcus, Outfront Media and Wawa, according to its website.
Midnite Snax did not respond to questions about its expansion.
The lease was the latest for the Steel Equities-owned warehouse located on Grumman Corp.'s former campus in Bethpage.
Dubai-based Aramex, a global delivery firm, moved to the complex from Queens earlier this year, leasing about 48,000 square feet, Newsday previously reported.
The Bethpage warehouse's central location made it a strong fit for the company, said Rob Kuppersmith, executive managing director at brokerage Cushman & Wakefield.
The market for warehouse space in Nassau is tight, with limited high-quality options and little land available for development, he said.
“This was really about continuity and recognizing the value of a facility that works extremely well for the company," Kuppersmith said in an email. "When you have an operation of this size that is already established and functioning efficiently, there’s significant value in being able to remain in place rather than disrupt the business with a relocation.”
Asking rents at Long Island warehouses rose to an average of $19.31 per square foot in the second quarter as the vacancy rate for the region fell to 4.9%, according to a market report from Cushman & Wakefield.
The report showed Suffolk County has double the amount of industrial space as Nassau and accounted for the bulk of leasing activity so far this year, including Home Depot's 414,000-square-foot warehouse lease in Yaphank.
In eastern Nassau, which includes Bethpage, the vacancy rate for industrial space was slightly higher than the rest of Long Island, at 5.2%.
Midnite Snax’s renewal will likely be one of the largest industrial leases in Nassau County this year, said Philip Shwom, an industrial broker and president of Schacker Realty in Melville, who wasn't involved in the Midnite Snax lease.
Despite the relatively low vacancy rate, tenants looking for the largest spaces still have options.
In Nassau, several new warehouses have opened, including the Crossways Logistics Center in Woodbury and the Nassau Logistics Center in Hicksville.
But there’s more competition for smaller warehouse space, said Shwom.
“I wouldn’t say the landlord has a huge advantage for big spaces,” Shwom said. “Smaller spaces — the landlord has the advantage in both Nassau and Suffolk as those tend to be very popular.”
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
