Redeveloping Long Island Office Space

31 January, 2024

Image Source: Long Island Business News

The demolition of the former CA headquarters in Islandia is marking the beginning of a speculative industrial project that aims to bring 980,000 square feet of high-ceiling, modern warehousing and distribution space across eight buildings.

The office complex, which had been home to around 3,500 CA employees, is the most recent example of Long Island office properties being redeveloped for other uses, especially industrial. The office market has struggled since the pandemic, with the overall Long Island office vacancy rate climbing to 14.4% in Q4 2023.

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The project will be built in phases, with the first two buildings expected to take around 12 months to complete once construction begins. Bohler’s Melville team provided the required site plans, entitlements, and permitting services.

Due to the difficult financing and construction cost environment, the envisioned redevelopment of the site will be dependent upon IDA assistance, including a beneficial payment-in-lieu-of-taxes agreement. Developers say IDA assistance will be necessary to attract high-quality end users who require a competitive cost structure and financial stability to make a long-term commitment to the facility.

Read more in Long Island Business News.


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