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Rechler’s warehousing space explored by brokers

Nov 26, 2024 | The Long Island Advance

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Rechler Equity Partners breaks ground on 91 rental home Greybarn Patchogue

Oct 14, 2024 | NYREJ

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Greybarn hosts groundbreaking ceremony at former Mediterranean Manor

Oct 03, 2024 | The Long Island Advance

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Demand from amazon, others are fueling plans for 18 million square feet of new warehouses on Long Island

Sep 26, 2024 | Newsday

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Rechler Equity Partners honors real estate brokers for leasing efforts

Aug 08, 2024 | Long Island Business News

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Rechler Equity Partners Breaks Ground on First Building of Rechler Business Center at Medford

Oct 26, 2023

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National Grid is first tenant at new Rechler Equity project

Oct 02, 2023 | Long Island Business News

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A Family History of Development

Apr 20, 2023 | The Southampton Press

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The Final Piece Of The Puzzle: Officials Break Ground For Last Hampton Business District Building

July 25, 2022 | 27east.com

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Rechler Equity Partners Break Ground on Final Hamptons Business District Building

July 20, 2022 | Real Estate Weekly

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John's Crazy Socks expands to new space, to sell at Kohl's

June 09, 2022 | Newsday

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High school hospitality program inspired by the old Canoe Place Inn

Oct 16, 2019 | Newsday

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Duggal Visual Solutions Expands into the Hampton Business District

Sep 30, 2019

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Rechler leases 2,000 s/f micro unit to Technical Glazing Solutions; Khetaguri of Alliance Real Estate Corp. reps tenant

Aug 06, 2019 | NYREJ

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Snack foods firm expands in Hauppauge

July 22, 2019 | Long Island Business News

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Rechler Equity Partners Celebrates Top Brokers during Annual Award Ceremony

Mar 15, 2019

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Rechler Equity signs two leases totaling 147,978 SF

Mar 05, 2019 | New York Real Estate Journal

Hauppauge, Melville and Farmingdale Industrial Portfolio is 100 Percent Leased. Read Press Release

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The Hampton Boathouses district sees success in numbers

Feb 25, 2019 | 27 East

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Amneal Inks deals with Rechler Equity to satisfy space needs for expansion

Feb 25, 2019

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Hampton Bays Builds Waterfront Luxury

July 13, 2018 | The New York Times

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Rebirth of Historic Hampton Bays Destination

June 26, 2018

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Construction of the Hampton Boathouses Begins

June 26, 2018

A Luxury Waterfront Townhome Community by Rechler Equity Partners Breaks Ground.

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Rechler Equity Partners Celebrates Top Brokers during Annual Award Ceremony

Mar 30, 2018

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Record Occupancy Continues for Rechler Equity Partners

Mar 12, 2018

Hauppauge, Melville and Farmingdale Industrial Portfolio is 100 Percent Leased. Read Press Release 

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Tate's Bake shop expands in Westhampton beach

Jan 18, 2018 | newsday

The cookie maker takes 16,250 more square feet at Rechler Equity's Hampton Business District. Read Victor Ocasio's article in Newsday

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Westhampton Beach brewing to take off at Gabreski airport

Jan 03, 2018 | Newsday

Read Victor Ocasio's article in Newsday

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Tate's bake shop set for expansion at the Hampton Business District

Jan 01, 2018

Cookie Giant Continues its Growth on Long Island's East End as it Fulfills Orders from Across the Globe.  Read Press Release

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Digging into the Hampton's Biggest Projects

July 01, 2017 | The Real Deal

Read Richard Murdocco's article in The Real Deal

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It's all in the family

June 26, 2017

Local Family Owned and Operated Companies, Rechler Equity Partners and East/West Industries, Celebrate the Opening of a New, State-of-the-Art Facility. Read Press Release

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Rechler Equity Partners awards scholarships to eleven Long Island High School Students

June 01, 2017

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Greybarn: No Vacancy

May 31, 2017

All 50 Apartments in Phase 1 of the New, Luxury Rental Community are Fully OccupiedPhase 2 Expansion Set for Completion in September 2017. Read Press Release

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Rechler Equity Prtners break ground on latest addition to the Hampton Business District

May 02, 2017

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Rechler Equity Partners finishes 2016 with record occupancy levels

Mar 06, 2017

Filling the Void in Long Island’s Available Class-A Industrial and Commercial SpaceCompany Continues to Set the Standard.   Read Press Release

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Hampton Business District Welcomes Westhampton Beach Brewing Company

Jan 03, 2017

Rechler Equity Partners Inks Lease with Local Brewery at 220 Roger’s Way.  Read Press Release

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Rechler Equity Partners reports unprecedented occupancy in first two quarters of 2016

Sep 06, 2016

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New Business Park continues to take shape in Westhampton

Aug 26, 2016 | 27 East

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Starbucks, Gohealth sign leases at Grerybarn Amityville

July 22, 2016 | Newsday

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Broadway Bound

July 22, 2016 | libn.com

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Blumefeld acquires Hauppauge building for $12.6M

July 12, 2016 | libn.com

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Rechler Equity plans construction at Gabreski

June 10, 2016 | libn.com

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NYREJ Developer of the Year

Apr 28, 2016 | nyrej

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CBRE Brokers Honored

Apr 14, 2016 | newsday

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Rechler Equity Partners honored with developer of the year award

Apr 08, 2016

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Rechler honors top dealmakers

Mar 14, 2016 | Real Estate Weekly

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Rechler Equity Partners hosts commercial real estate brokers award ceremony

Mar 07, 2016

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In-house environmentalist

Feb 09, 2016 | libn.com

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Rechler Equity welcomes aboard Bryan Devaux

Jan 19, 2016

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Hampton Business District hosts Libi and Nari event for Southhampton town board special election

Jan 19, 2016

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Rechler Equiy sells 5 properties in planned disposition program for 36.3 million

Nov 11, 2015

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Marchon Eyewear, Inc. renwes 25,000 SF lease at Rechler Equity Partners' 265 Spagnoli Road

Nov 03, 2015

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Allure metal works to move to Islandia

Oct 25, 2015 | Newsday

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Rechler signs 30,400 SF lease for Allure Metal Works, Inc. at 71 Hoffman Lane in Islandia

Oct 05, 2015

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Fonar after weighing Florida move renews Melville lease

Oct 02, 2015 | Newsday

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Rechler Equity Partners signs 37,141 SF lease with Tate's Bake Shop at The Hampton Business District

Sep 22, 2015

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Trias of Rechler Equity Partners negotiates 37,141 s/f lease to Tate's Bake Shop

Sep 08, 2015 | nyrej

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Costa of Rechler Equity Partners reps landlord in 31,350 s/f lease; Misa of Industry One Realty reps tenant, Appliance World

Sep 08, 2015 | nyrej

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Rechler’s Hampton Business District attracts East End baker

Sep 01, 2015 | Real Estate Weekly

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Trias of Rechler leases 36,000 s/f at 55 Engineers Road

Aug 15, 2015 | nyrej

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Tate's puts HQ lease in the oven at new Rechler build

Aug 14, 2015 | Globest.com

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Rechler signs 12,600 sf lease for Judge Family Enterprises Inc at 85 Orville Drive

Aug 10, 2015

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Rechler Equity Partners sgns 31,350 for Huntingon Appliances at 90 Plant Avenue

Aug 03, 2015

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Rechler Equity Partners signs 36,000 sf lease for Citation Labeling at 55 Engineers Road

July 14, 2015

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Rechler signs Mtex LLC to 10,000 sf at 90 Plant Avenue

July 06, 2015

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Rechler inks 95K-SF relocation, expansion

June 29, 2015 | globest.com

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Rechler Equity Partners arranges 95,000+ lease for Qosina Corp at 2002 Orville Drive North

June 29, 2015

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Carrier Enterprise Northeast leases to HBD

Apr 28, 2015

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Rechler signs new 54,775 sf lease with Spirit Pharmaceuticals

Mar 05, 2015

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GMG Transwest lease 32,100 at 65 Orville

Mar 02, 2015

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Rechler Equity Partners signs 25,000 sf lease for Design Works at 70 Orville Drive

Feb 18, 2015

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2014 Long Island Brokers Awards Dinner

Feb 17, 2015

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Projector Lamp Services at 120 Wilbur Drive + Bay Crest at 50 Orville Drive

Jan 22, 2015

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Vicon, Bradley and Global Payment Deals at 170 Wilbur + 135 Sell Court

Jan 14, 2015

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Gemini Fund Services expand to 39,156 at Rechler Equity Partners' 80 Arkay

Jan 12, 2015

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Loop LOC renews Long Island HQ lease

Sep 30, 2014

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AC Electric leases 9,140 sf at Rechler Equity Partners' 220 Roger's Way

Sep 22, 2014

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Rechler Eqity Partners signs bewild.com in 20,092 sf lease at 110 Bi County Blvd

Sep 02, 2014

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Rechler Equity Partners signs two new leases totaling 8,800 sf

Aug 18, 2014

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Zwanger-persiti leases 15,502 sf at Rechler's 110 Bi County Blvd

Aug 14, 2014

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Rechler Equity Partners sign 15,550 sf for JRM Nutrasciences at 80 Orville Drive

Aug 01, 2014

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Rechler Equity Partners to develop 119,000 sf within Islip Foreign Trade Zone

July 25, 2014

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Snapple leases 51,734 at Rechler Equity's 2004 Orville Dr. North

July 10, 2014

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2014 6-4 Baechler Sculpture at HBD

June 07, 2014

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Stylish Rechler Equity Partners office building chosen as Fashion Spread Locale

May 28, 2014

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Gerard N. Delbene

May 05, 2014

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Rechler Equity Partners breaks ground on Hampton Business District

Apr 29, 2014

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Groundbreaking alert for HBD

Apr 23, 2014

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Rechler Equity Partners begins phase one of Hamptons Business District

Apr 22, 2014

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Ferrellgas signs new 31,000 sf lease at Rechler Equity - owned 10 Hub Drive in Melville, NY

Apr 21, 2014

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Chris Costa joins Rechler Equity Partners

Apr 02, 2014

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Demand for LI industrial space on the rise

Mar 31, 2014

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Bactolac renews 20,000 sf lease at Rechler Equity Partners 73 Oser Avenue in Happaugue

Mar 26, 2014

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Brokers awards dinner 2014

Mar 10, 2014

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Mitchel Rechler speaks at Sior Tri-State Real Estate Event

Mar 04, 2014

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Rechler Equity Partners honors real estate brokers for leasing efforts

, | Long Island Business News

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Demand from Amazon, others are fueling plans for 18 million square feet of new warehouses on Long Island

, | Newsday

Demand from Amazon, others are fueling plans for 18 million square feet of new warehouses on Long Island

 

 

By James T. Madorejames.madore@newsday.comJamesTMadoreSeptember 26, 2024 5:00 am

Forty-three Nassau Veterans Memorial Coliseums or 18 million square feet.

That’s how much new warehouse space is being proposed for Long Island by developers seeking to profit from low vacancy rates, high rents and retailers’ plans to deliver purchases to customers’ doorsteps.

Fifty-six warehouse projects have been put forward to town planning boards, about half of them in the past two years. Together, the warehouses would cost more than $3 billion to construct, according to data compiled by Newsday from visits to the building sites and government documents.

"Since COVID-19 happened there’s been a big push for these micro-warehouses to be opened up," said Jason F. Maietta, an executive vice president at the real estate firm Colliers, referring to retailers' need for more warehouse space to make "last-mile" deliveries to consumers who are increasingly shopping online and to resupply brick-and-mortar stores.

WHAT TO KNOW

  • Fifty-six warehouse projects, totaling 18 million square feet, have been proposed for Long Island, according to data assembled by Newsday via visits to the building sites and government documents.
  • More than 16 projects have been completed, representing 20.5% of the proposed space, and more than 44% has been leased, the data show.
  • Building moratoriums have been put in place by governments in Brookhaven and Riverhead town as officials seek to prevent of glut of vacant warehouses, both new and old.

"Everyone kind of hopped on that train ... Developers [from outside of Long Island] realized that we have a big market here and they started to invest hundreds of millions of dollars," said Maietta, who oversees the leasing and sale of warehouses and industrial properties in the region for Colliers.

New entrants to the market include Rosemont, Illinois-based Venture One Real Estate, which has four projects; Kansas City, Missouri-based NorthPoint Development, two projects, and Manhattan-based Ares, Brookfield Properties, Link Logistics, Rockefeller Group International and Wildflower, each with two or three projects.

One of the prominent building sites — 600 Grumman Rd. West in Bethpage — was purchased by San Francisco-based Prologis for a 240,000-square-foot warehouse. The property had been home to the headquarters of Grumman Aerospace Corp., which employed thousands of Long Islanders for decades.

Plans for the $106 million warehouse were unveiled more than two years ago but work hasn’t progressed beyond demolishing the Grumman office and moving an historic U.S. Navy F-14 Tomcat fighter jet to the Cradle of Aviation Museum in Uniondale.

Asked if the project had been shelved, Prologis spokesman Mattie Sorrentino said, "We plan to proceed ... [The warehouse would] create jobs, strengthen the supply chain and contribute to the local economy."

20% built so far

New entrants to the market include Rosemont, Illinois-based Venture One Real Estate, which has four projects; Kansas City, Missouri-based NorthPoint Development, two projects, and Manhattan-based Ares, Brookfield Properties, Link Logistics, Rockefeller Group International and Wildflower, each with two or three projects.

One of the prominent building sites — 600 Grumman Rd. West in Bethpage — was purchased by San Francisco-based Prologis for a 240,000-square-foot warehouse. The property had been home to the headquarters of Grumman Aerospace Corp., which employed thousands of Long Islanders for decades.

Plans for the $106 million warehouse were unveiled more than two years ago but work hasn’t progressed beyond demolishing the Grumman office and moving an historic U.S. Navy F-14 Tomcat fighter jet to the Cradle of Aviation Museum in Uniondale.

Asked if the project had been shelved, Prologis spokesman Mattie Sorrentino said, "We plan to proceed ... [The warehouse would] create jobs, strengthen the supply chain and contribute to the local economy."

Of the 18 million square feet of new warehouses proposed for Long Island, 3.7 million, or 20.5%, have been constructed so far across 17 projects. More than 1.8 million square feet have been leased, based on the Newsday site visits, plus information from developers and commercial real estate brokers.

Those signing leases and the location of their new warehouse include Amazon in Melville and Woodmere, cookie manufacturer Tate’s Bake Shop in Shirley, tire distributor Max Finkelstein LLC in Hauppauge, and cosmetics sellers Nicka K New York and Absolute New York and food distributor Food Authority, all in Melville, according to the database.

Construction on most of the warehouses will be completed before the developer finds tenants.

Two notable exceptions are 125 Baylis Rd. in Melville, a 103,500-square-foot warehouse built by Creation Equity and J.P. Morgan Asset Management for soft drink distributor Keurig Dr Pepper, and the first building of the Rechler Business District in Medford, which will largely be occupied by natural gas provider KeySpan Gas East Corp./National Grid.

"Lenders today are a lot more reticent about providing construction loans for buildings that are speculative — that don't have some portion of the building preleased," said Mitchell Rechler, co-managing partner of Rechler Equity Partners. The Plainview firm is Long Island’s largest owner of commercial property, with more than 6.5 million square feet in 100-plus buildings.

He said many of the big warehouses recently built by competitors of Rechler Equity are sitting vacant because "they were designed for one specific use, large scale e-commerce, and are not adaptable to smaller tenants and other uses ... Many of these buildings aren't going to pencil out [i.e. become profitable] due to limited demand for the use that they were built for."

Rechler said his company is seeing "significant demand from small tenants that may need 10,000 square feet, but not 100,000 or 75,000."

Smaller than proposed

The Rechler Business District in Medford will total 700,000 square feet over multiple buildings. Credit: Elizabeth Sagarin

 

The Rechler Business District project, off Horseblock Road south of the LIE in Medford, will be 745,000 square feet upon completion. That’s 100,000 square feet smaller than originally proposed because KeySpan is leasing 10 acres of land for outside storage, along with renting more than 70% of the first building. The utility is expected to occupy that space in late November.

"As far as the rest of the property, we’re talking to a number of [prospective] tenants who have very specific needs," said Ted Trias, director of acquisitions and leasing for Rechler Equity.

Across the developer’s portfolio of buildings, leasing "activity seems to be in the below 50,000-square-foot requirement. The big tenants are just not out there right now, but we’re still doing business. We’re not waiting for the 100,000-square-foot tenant," Trias said.

Rechler Equity ended 2023 with a vacancy rate of 1.7%, or less than half the Long Island rate of 4.4%, according to the research firm CoStar Group in Washington.

If all the proposed warehouses are built, the amount of vacant space could climb to more than 11% in the next five years, based on a report from the consulting firm Camoin Associates in Richmond, Virginia, which specializes in economic development.

"The surge in demand [in 2021-22] may not persist, raising concerns about potential overbuilding in the local and regional markets if excessive speculative construction continues," Camoin said in the report for the Brookhaven Town Industrial Development Agency. "Recently-built speculative developments are taking longer to lease-up ... The oversupply risk has grown."

 We don’t want to end up with a bunch of empty buildings.

—Lisa M.G. Mulligan, CEO of Brookhaven Town Industrial Development Agency

The Camoin analysis, along with the increased number of big warehouse projects being proposed for Brookhaven, caused the IDA board in November 2023 to stop taking some developers’ applications for tax breaks. The six-month moratorium only affected projects of 100,000 square feet or more with no tenants. In April, the moratorium was extended another six months to January 2025.

"We had three large projects that had closed with us [for tax-break deals] and we had all of these other ones in the hopper," said Lisa M.G. Mulligan, the IDA’s CEO, recalling how the moratorium came to be.

"My board’s thinking was: ‘Let’s take a breath and see if there are going to be end users of these warehouses. We don’t want to end up with a bunch of empty buildings,’ ” she said.

In Brookhaven, developers want to build nearly 7 million square feet of warehouses, or about 40% of all that’s been proposed. Riverhead Town is No. 2 with 2.4 million square feet, or 13% of the total, according to the database.

Riverhead also has a moratorium on large industrial developments in Calverton, where six warehouse projects have been proposed. The moratorium began in January and was extended until Oct. 12 by the town board to allow for zoning changes based on a newly completed master plan.

The Greater Calverton Civic Association had first called for the moratorium in 2020, citing concerns about traffic congestion and the impact on nearby farms.

"We would have liked to have had [the moratorium] earlier," association president Toqui Terchun told Riverhead officials in January. "It would have prevented a lot of [warehouse] applications now in the pipeline, and it would have prevented a traffic nightmare."

'Draconian' moratoriums

The developers’ group Association for a Better Long Island called the moratoriums "draconian" and harmful to companies and homeowners.

"At a time when local government desperately needs the revenue generated by private-sector investment, these sweeping moratoriums hurt both local businesses and residents, creating a needless self-inflicted economic wound on a region that must encourage growth," said Kyle Strober, the association’s executive director.

In addition, concerns about a glut of vacant new and old warehouses in the future is unfounded, according to the real estate firm Colliers.

Lars R. Remole, one of the firm’s senior research analysts, said Long Island has less available warehouse space for rent than in New Jersey and New York City’s outer boroughs. He said developers continue to propose projects, build them and secure tenants willing to pay record-high rents.

"What’s being proposed — 18 million square feet — is a small drop in the bucket of the 150 million square feet of industrial space on Long Island," he said. "There’s been such strong demand and such strong [leasing] activity that I’m not super worried about the space, both old and new, being absorbed" by tenants.

... these sweeping moratoriums hurt both local businesses and residents, creating a needless self-inflicted economic wound on a region that must encourage growth.

—Kyle Strober, executive director of Association for a Better Long Island

Independent logistics companies, online retailers, food and beverage distributors and drugmakers top the list of who’s looking for warehouse space, according to Remole.

Developer Paul Amoruso said he’s getting inquiries from national companies about a 950,000-square-foot warehouse project that he and three investment firms have proposed for Islandia, next to Jake’s 58 casino along the LIE.

"There are large tenants that are either here now or floating around, and they’re all inquiring about large spaces," said Amoruso, who became a commercial real estate broker in 1984 and then a hotel developer. "We’re getting people coming to us and saying, ‘Can we talk to you about more than 400,000 square feet?’ ”

He said construction would soon begin on two of the eight warehouses that have been proposed for the site of the former Computer Associates International Inc. headquarters, where more than 3,500 people once worked. The office was demolished in January after Amoruso and his partners couldn’t find tenants and decided to capitalize on the demand for warehouses.

Still, Amoruso said it was a tough decision because he had helped Computer Associates founder Charles Wang to build the headquarters more than 35 years earlier.

Amoruso recalled that in the late 1980s, the 76-acre parcel "was where people got fill [for construction projects] and motorcross races took place illegally. Then Charles Wang, [together with a real estate developer], bought the property for his company's headquarters. Now, the best use of the property is warehouses because trucks can get on the expressway directly without having to go on residential streets," Amoruso said.

He added, "I’ve come full circle with the Computer Associates site."

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Rechler's warehousing space explored by brokers

, | The Long Island Advance

Rechler’s warehousing space explored by brokers

 

PHOTO (L-R): Rechler Equity co-managing partner Mitchell Rechler, Director of Acquisitions and Leasing Ted Trias and Director of Leasing Chris Costa.

Courtesy photo

Posted Tuesday, November 26, 2024 12:00 am

Rechler Equity Partners, the largest owner of commercial real estate on Long Island, recently hosted an open house for brokers at 10 Donald’s Way, the inaugural property in the Rechler Business District at Medford.

The event provided an opportunity for attendees to tour the 140,875-square-foot industrial facility, located half a mile from the Long Island Expressway, and learn about its impressive features from Rechler Equity’s executives.

With one tenant already signed to occupy just over 100,000 square feet of the building, Rechler Equity aims to fill the remaining 39,000 square-feet, which can be tailored to meet specific tenant needs, including divisions.

“10 Donald’s Way is strategically located a half a mile south of the Long Island Expressway at Exit 65,” said Rechler Equity co-managing partner Mitchell Rechler. “We design our buildings for flexibility, allowing us to offer tenants all size ranges. With 28-foot ceilings, ESFR sprinkler system, sewers, multiple loading docks and drive-in options, 10 Donald’s Way can meet the demands of both warehouse users and manufacturers.”

Donald’s Way is named in honor of the late real estate innovator Donald Rechler and serves as a tribute to his pioneering influence, along with his brother, Roger, on Long Island’s commercial development landscape.

“From the inception of the company our grandfather founded over 65 years ago to our current operation today, Rechler Equity has been dedicated to creating the most efficient, state-of-the-art commercial and industrial space for all business on Long Island,” said Gregg Rechler, co-managing partner of Rechler Equity. “It is their vision that inspired us to build these versatile spaces.”

The development is expected to be completed this year, brokers and prospective tenants are encouraged to contact Ted Trias at 631-414-8444 or ttrias@rechlerequity.com to inquire about the available space.

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