A trend in the commercial real estate market seems to have taken a 180-degree turn in recent months. In years past, vacant warehouse space has been converted to office space to accommodate new tenants. Recently, we have learned that the office spaces are now being converted to industrial and warehouse spaces.
In an article by newsday.com writer, Victor Ocasio, we learned of two such properties in Melville, NY that are undergoing the conversion process. The first is at 50 Marcus Drive and the second is at 100 Baylis Road. The project on Baylis Road will not only convert the existing 164,000 square feet of office space to industrial space but will add an additional 100,000 square feet, by way of two expansion buildings.
With the demand for industrial space in Long Island at an all-time high, the demand for additional housing is sure to follow. Companies like Rechler Equity Partners can certainly take advantage of the booming economy. Rechler Equity Partners is the largest owner of industrial space in Suffolk County and is at 99% occupancy.
The company is developing the Hampton Business District in Westhampton Beach that consists of 440,000 square feet of industrial, office and hotel space. In Amityville, the developer is creating a 500-unit residential community, called Greybarn. The second phase of construction is underway. It will add 155 units and is expected to be completed by the fourth quarter of 2017. Phase 1 was completed earlier this year and quickly filled all vacancies.
If the increase in industrial space creates more jobs in the area, it is foreseeable that construction phases 2 and 3 at Greybarn will fill up just as fast. A Phase 2 1 bedroom apartment in Amityville at Greybarn starts at $2300 per month, according to the complex website, while a 2 bedroom apartment in Amityville’s Greybarn complex is listed at $2800 per month.
The one piece of information that ties all of this together is the knowledge that both of the industrial sites in Melville are less than 10 miles from the Greybarn complex in Amityville.