Retail posted the highest dollar volume of any Long Island asset class for the fourth consecutive year at $713.6 million, though this represented a 16% decline from 2024. Activity remained concentrated in the two- and three-star segment, with the bulk of transactions priced between $1 million and $5 million — consistent with the market’s historical pattern of neighborhood-retail and service-oriented trades driving the numbers.

The retail fundamentals underlying this volume tell a more constructive story than the headline decline suggests. Vacancy across the Long Island retail market sits at approximately 4–5%, among the tightest in the New York metro area. Rents are rising, particularly for mid-sized spaces, and demand is heavily concentrated in medical, food service, and essential-services tenants. For investors, the Long Island retail landscape continues to favor patient capital focused on tenant credit quality and location.

Industrial investment sales totaled $523.5 million in 2025, a 35% year-over-year decline that also came in 10% below the 2015–2019 pre-pandemic annual average. Activity was concentrated exclusively in one- through three-star properties, and the stock traded was notably aged — of 137 transactions, only seven involved properties built after 2000, and the average building age was nearly 60 years.

A significant shift was the growing presence of owner-users, who accounted for 19% of purchase volume in 2025, up from a 13% five-year average. The year’s largest industrial trade exemplified this trend: F.W. Webb Co., a wholesale distributor of plumbing and HVAC supplies, acquired 31 Windsor Place for $29.25 million from Brookfield Property Group, purchasing the 143,000-square-foot building for its own occupancy.

Long Island’s office sector was the clearest bright spot in 2025, with capital markets activity climbing 10% year-over-year to $413.5 million. The market posted four consecutive quarters of positive absorption, and availability fell to 8.8% by year-end — dramatically below the national average of 15.7%.

However, investment sales activity above $5 million leaned heavily toward medical office, a subsector that has demonstrated particular resilience as healthcare systems expand their outpatient footprints across Long Island. The largest office sale of the year underscored this theme: Northwell Health purchased 200 Jericho Quadrangle, a vacant 311,000-square-foot former Cablevision/Altice headquarters, for $33 million (~$106/SF) with plans to convert it into a healthcare facility.

Northwell’s acquisition reflects the health system’s aggressive real estate expansion across the region — including a recently completed merger with Nuvance Health that created a $22.6 billion, 28-hospital system — and highlights how healthcare is becoming one of the most significant sources of demand in Long Island’s office and commercial markets.

Multifamily investment sales volume increased more than sevenfold to $134.1 million in 2025, though this follows 2024 being one of the least active multifamily years on record for Long Island. More than half of the year’s volume came from just two transactions: 102 W. Main St. in Smithtown ($42M) and 17-21 Lumber Road in Roslyn ($31M), both acquired by GB Family Office Holdings.

Both properties are four-star buildings constructed within the last decade, representative of the newer, higher-quality apartment product that has emerged in recent Long Island development cycles. The concentration of volume in these two trades highlights both the thinness of the multifamily investment market on Long Island and the appetite of family offices for stabilized, institutional-quality product when it becomes available.

Long Island’s capital markets are navigating the same bid-ask dislocation and elevated cost of capital that has constrained deal flow nationally. But the underlying fundamentals — particularly in office and retail — are materially stronger than many peer suburban markets, and several structural themes point to selective recovery.

The CoStar data referenced in this report covers investment sales across the four major commercial property types: office, multifamily, industrial, and retail. It does not include specialty-use assets such as assisted living facilities, self-storage, hospitality, or other alternative property types. A separate Cushman & Wakefield analysis that includes these categories reported a significantly higher total deal volume of $4.1 billion for Long Island in 2025, underscoring how specialty assets have become a material part of the region’s capital markets landscape.