Tag: office real estate

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October 18, 2024

Bond, Schoeneck & King PLLC has leased 42,110 square feet of office space at RXR’s 68 South Service Road in Melville. 

The law firm is relocating and consolidating, moving from about 10,000 square feet it had occupied at 1010 Franklin Ave. in Garden City and about 20,000 square feet it had occupied at 225 Old Country Road in Melville. 

Jeffrey Peck, Daniel Horowitz, Jacob Stern and Roi Shleifer from Savills represented the tenant, while Jason Forte served as in-house representative for landlord RXR in the lease transaction, one of the largest law firm leasing deals on Long Island this year. 

“We are thrilled to welcome Bond, Schoeneck & King PLLC to 68 South Service Road,” Forte said in a written statement. “The firm’s commitment to both RXR and its new location reinforces a market trend RXR has been closely monitoring —that tenants are gravitating towards assets and landlords with proven track records of meticulously investing in and maintaining properties. RXR remains committed to maintaining the highest quality assets and offering amenities and programming that our tenants need to thrive in the modern workplace.”  

Bond, Schoeneck & King PLLC is a full-service law firm counseling individuals, companies, nonprofits, and public sector entities in a wide array of practice areas. The firm has more than 300 lawyers and 11 offices across New York State as well as offices in Boston, Kansas City, Naples, Fla., and Newark, N.J.   

“We conducted an extensive search to find the right location that would support the new commuter patterns of Bond’s workforce while minimizing disruption,” Peck said in the statement. “Consolidating into one central location was essential, and RXR’s Class A building emerged as the ideal choice, offering modern amenities and financial stability. RXR’s longstanding presence and reputation made it clear this was the perfect place to bring everyone together and upgrade Bond’s workspace.” 

The Long Island office market continues to reflect a split personality, as Class A properties remain mostly resilient and Class B and lower buildings contend with weaker demand. 

That split is evident in rents, as average asking rents for Class A office space was $33.64 per square foot in the second quarter, up 1% from the previous quarter, according to a new report from CBRE. In western Suffolk County, office rents grew 3 percent year-over-year, climbing to $29.33 per square foot, driven by an increase in Class A average asking rents while Class B remained flat, the report said. 

“Class A space is doing much better than Class B back-office space,” Dan Brandel, a CBRE senior vice president, told LIBN. “There’s kind of a flight to quality for office users.” 

There was 362,000 square feet of office leasing activity in the second quarter, which was about the same as the previous quarter, but still 7% below the five-year quarterly average. The overall vacancy rate for Long Island office space rose to 15.9% in the second quarter, higher than it was in the first quarter, as well as a year ago. 

Brokers attribute the reduced deal pace and increased vacancies to the continued uncertainty of tenants surrounding space requirements amid the new hybrid work environment.  

“The deal velocity is slightly up but still not near where it was before the pandemic,” Brandel said. “It’s indecisiveness by tenants in terms of employees coming back to the workplace, what that schedule looks like, and that hesitancy is what drives the shorter-term leases or a relocation that doesn’t require that much upfront capital.” 

Net absorption of office space in the second quarter was negative 375,000 square feet, reversing absorption gains from the first quarter and bringing year-to-date absorption to negative 273,000 square feet, according to the report. Much of that was fueled by a rise in available sublease space, which reached a new record high of 1.6 million square feet in Q2, up 10% from the previous quarter. 

Brandel said that office landlords that have pre-built space or space that’s in good condition have a little bit of a competitive edge when it comes to landing tenants in this market. 

“I think that built space, anything that’s built, has a much better chance of leasing than anything that’s raw,” he said. Brandel added that what he terms “hidden space” in the current market, also offers opportunities for tenants. 

“On the office side there’s a lot of hidden space. Tenants that don’t necessarily need their space, but aren’t willing to put it on the market,” he said. “They don’t want their perception of their space being on the market. There are opportunities that aren’t necessarily listed but could be made available.” 

The Feil Organization has completed an extensive capital improvement program at its Garden City office property. 

The landlord invested about $2 million in the redevelopment effort at Garden City Center at 100 Quentin Roosevelt Blvd. 

“Today’s marketplace calls for office space that immediately engages tenants from the moment they walk through our front doors, into the elevators, and into their workspace,” Andrew Wiener, head of commercial office leasing at the Feil Organization, said in a company statement. “This important milestone for our Long Island portfolio is yet another example of our commitment to delivering the highest quality properties and meeting the demand where it is.” 

Designed by Manhattan-based MdeAS Architects, improvements at the 200,000-square-foot office complex included a full redevelopment of the common areas and entry. Integrated seating, planting and artwork, new lighting and flooring were all part of the lobby’s reboot. 

Built in 1990, the building features glass walls and a five-story atrium. Amenities at Garden City Center include a conferencing facility, fitness center and a full-service restaurant. The Class A office property is about 75 percent occupied by a mix of professional service tenants in the insurance and legal industries.  

“The reimagined 100 Quentin Boulevard has been elevated to meet contemporary needs, with the renovation of the great crescent atrium now showcasing ultra-modern lighting, new landscaping, seating, art installations, and a unique sculptural wood screen that follows the building’s distinctive curve,” Dan Shannon, partner at MdeAS Architects, said in the statement. 

The Feil Organization portfolio totals more than 24 million square feet in industrial, commercial, and retail, over 5,000 residential properties, and thousands of acres of undeveloped land across the U.S. The company owns more than 1.46 million square feet of office space on Long Island, with buildings in Garden City, Melville, Great River, Lake Success, Levittown and Woodbury. 

Premier Veterinary Medical Group, an emergency animal hospital and clinic, has relocated to Rockville Centre. 

Formerly in Valley Stream, the veterinary group’s new 9,000-square-foot facility is now located at 120 North Village Avenue in Rockville Centre. 

The single-story office building, which is on .37 acres and located two blocks north of the Rockville Centre Long Island Rail Road station, was a former Chase Bank branch. It was sold for $2.03 million in 2020. 

Premier Veterinary Medical Group provides emergency surgery and treatment for conditions like respiratory distress, congestive heart failure, gastric dilation volvulus, and traumatic injuries. It is part of the National Veterinary Associates (NVA) network, which offers emergency and urgent veterinary care to pets in Queens and Nassau County. 

NVA is a global pet care provider with over 1,500 veterinary hospitals and pet resorts, generating about $6 billion in revenue. Recently, NVA announced the formation of two separate businesses: Ethos Veterinary Health, which includes 145 specialty hospitals with $2 billion in revenue, and NVA, which will manage around 1,400 general practice and equine hospitals along with pet resorts, with revenues of about $4 billion, according to a written statement.  

Daniel Rasmussen and Roger Wooster of Cushman & Wakefield represented the tenant, while Edward Gottlieb and Jessica Vilmenay of Schuckman Realty represented the landlord, Aben Village LLC, in the lease transaction. 

CBRE has been appointed as the leasing agent for the 1.1 million-square-foot Lake Success Quadrangle. 

The 11-building complex on 54 acres is one of Long Island’s largest office parks. Bordered by the Northern State Parkway, New Hyde Park Road and Marcus Avenue, Lake Success Quadrangle’s current tenant roster includes ProHealth, Northwell Health, NYU Langone, Catholic Health Services, New York Cancer & Blood Specialist and many others. 

The CBRE team of Daniel Brandel and Robert Seidenberg will spearhead the leasing assignment on behalf of owners TPG Angelo Gordon and The We’re Group. They are marketing available spaces at the complex that range from 2,000 square feet to as much as 120,000 square feet. Asking rents at the Quadrangle are $36 a square foot for office and $42 a square foot for medical uses. 

“The Lake Success Quadrangle boasts Class A medical and office options to meet a variety of space needs,” Brandel said in a statement from the brokerage firm. “The existing tenant base of premier medical office users activates the complex, and the location makes it extremely attractive to potential tenants seeking to tap the workforce near large population centers in Queens and Nassau County.” 

Historically, the property’s leasing was handled directly with ownership, however, CBRE will now be working alongside The We’re Group in marketing and leasing. While its current occupancy rate stands at about 93 percent, the effort will concentrate on filling the available space. 

“We look forward to working with the We’re team to bring a large-block medical tenant to this highly desirable property in a market with limited Class A availability,” Seidenberg said. 

Developed by The We’re Group, the first buildings at the Lake Success Quadrangle were constructed in 1968 and the rest were completed within the next few years. The office park has since undergone many major renovations and upgrades. 

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April 11, 2024

An office property in Roslyn has sold for $1.95 million. 

Vohora Realty LLC, an affiliate of a pharmacy business, purchased the 6,034-square-foot building on .15 acres at 1326 Old Northern Blvd. 

The buyer, which operates Roslyn Pharmacy two doors down, plans to occupy the office building once longtime tenant, Summer Discovery, a provider of student summer programs, vacates by the end of the year, according to the brokers on the deal. 

Stephen Preuss, Kevin Louie and Eric Delafraz of RIPCO Real Estate represented the buyer, as well as the seller, Musik Properties LLC, in the sales transaction. 

“1326 Old Northern Blvd is an iconic building owned and operated by the seller for several decades,” Louie said. “There is short-term income for the buyer while they get their construction and business plans in place. We had several offers at the asking price and was able to put this centrally located asset under contract within 30 days of marketing.” 

BEB Capital has completed extensive renovations at its Port Washington headquarters, where up to 42,000 square feet of office space is available to lease. 

The renovation project, in which BEB invested more than $4 million, added new amenities and upgrades to the interior design of the 73,445-square-foot building on 6.34 acres at 26 Harbor Park Drive. The office areas now feature polished concrete floors and a new common conference room for tenants. 

Another new amenity for tenants is a patio that extends from the building’s lobby. In addition, the property now sports a newly installed mural created by Felipe Alvarez. 

“We’ve created an atmosphere and ecosystem at 26 Harbor Park Drive that is unlike what you will typically find in boutique assets in the suburbs,” Lee Brodsky, CEO of BEB Capital, said in a company statement. “We’ve seen upgrades like this done successfully in major metros by best-in-class operators, and I wanted to bring that creativity and vision for a vibrant workplace environment to this asset. I’ve long admired the Wynwood Walls in Miami and how they highlight the important cross-section of art and real estate, which inspired us to add a large art component when redeveloping 26 Harbor Park Drive. We’re excited to reintroduce the building to the market and create a dynamic environment for our tenants.” 

TPG Architecture, Nelson Pope Engineering, Lauren Kanfi of Studio Luli all collaborated with BEB on the space design and renovations. 

The first floor of the property at 26 Harbor Park Drive is occupied by two industrial tenants and a personal training business, but the newly renovated second floor of the building is available for office tenants. Daniel Oliver, Scott Berfas and Jordan Oliver of Newmark are the exclusive leasing agents for the building. 

“BEB has created something unique here on Long Island,” said Daniel Oliver. “Rather than being located in a large-scale office park, we can provide a boutique offering with a new lobby, outdoor café seating, shared conference room, tremendous parking and potential signage. We have optionality to provide a pre-built suite that is ready to go or a construct a new suite from scratch to a tenant’s exact specifications.” 

The Vitality Center, a wellness and chiropractic practice, is expanding in Hauppauge. 

The center, owned and operated by Dr. Jason Pape, leased 10,000 square feet of office space at 35 Arkay Drive within the Long Island Innovation Park at Hauppauge. The Vitality Center relocated to its new digs from its previous location at 66 Austin Blvd. in Commack.  

Pape began his career with a chiropractic practice in Commack 20 years ago. He briefly relocated to a gym in the Hauppauge Industrial Park and in 2013, Pape opened his holistic one-stop shop called The Vitality Center in the Austin Boulevard building. 

“Over the next 10 years the center grew and flourished, in large part due to our ability to serve the people who worked in the park,” Pape said. “As our center continued to grow, I saw the need to find a larger space. Having built strong ties to many people and businesses in the park, combined with its ease of access and ability to house a large space, I felt it was important to stay.” 

However, Pape said finding a new office close to his old location with the right amount of space to accommodate the growing center wasn’t easy. 

“Even with a healthy supply of office space availability, it was still challenging to find the right space for The Vitality Center,” said Newmark broker Daniel Gazzola, who along with Newmark colleague Jordan Oliver, represented the tenant. “With tight geographical, configuration, and timing constraints, it was difficult to find the right location. We are very happy we were able to keep Dr. Pape in the Hauppauge Industrial Park so he can continue to serve his patients.” 

Newmark’s Gazzola and Oliver of represented the tenant, while Rich Pino of R&R Realty represented the landlord, Marcus Arkay Realty, LLC, in the Hauppauge lease transaction. 

The Federal Aviation Administration has leased 74,679 square feet of office space at One Old Country Road in Carle Place. 

The agency will relocate its administrative headquarters from its present location at One Aviation Plaza in Jamaica to the Carle Place office property, where it will occupy about one-and-a-half floors. 

After a three-year search, complicated by the COVID pandemic, the FAA and its brokers from CBRE had identified several properties where it could relocate before the agency chose the Carle Place building. 

The 320,000-square-foot office building at One Old Country Road was totally revamped between 2020 and 2021 with a $14 million renovation project that was assisted by economic incentives from the Nassau County Industrial Development Agency. After Garden City-based DBD Realty Group purchased the property for $26.5 million in Feb. 2020, it has since installed new windows, updated the elevators, HVAC systems and the cafeteria of the five-story building. Conference rooms that can accommodate up to 40 people were also added and its rehabbed parking garage is now equipped with EV charging stations. 

The building is currently undergoing the LEED certification process with the U.S. Green Building Council. 

Vincent LaManna, Richard Freel, Maria Kobe and Ralph Giuffre of CBRE represented the FAA, while Kelly Koukou of Lee & Associates represented the landlord, DBD Realty Group, in the lease transaction.

It’s expected the FAA will begin occupying the new offices in Q3 2025, according to Koukou, who serves as the property’s exclusive leasing agent.