Long Island Capital Markets: Deal Volume Maintains Strong Momentum As Core Asset Investment Surges
The Long Island investment sales market maintained strong momentum in H1 2026, supported by continued economic expansion. Although interest rates remained elevated through midyear, investors continued to deploy capital across both traditional and alternative assets. Aggregate sales volume on Long Island totaled $1.8 billion in H1 2026, a notable 21.2% year-over-year (YOY) increase. Institutional groups focused heavily on core asset classes, including retail, industrial, office, and multifamily—fueling $1.5 billion in total deal volume and comprising eight of the top 10 transactions year-to-date (YTD). The office sector registered one of the biggest comebacks, with end-users and investors purchasing nearly $400 million in office properties—a 94.1% YOY increase. Meanwhile, retail continued to dominate the market, with $420.4 million in aggregate sales volume.
Nassau: In H1 2026, Nassau County recorded $666.5 million in sales volume, an 11.4% surge YOY. The county completed 176 transactions, 26 fewer than in H1 2025. Retail assets led the market, accounting for 23.1% of the total sales volume. Office and specialty-use properties followed, at 22.7% and 20.6%, respectively. The standout deal was Investcorp’s $49.1-million acquisition of 9 Gerhard Road in Plainview, a 116-unit assisted living facility from Capitol Seniors Housing. Additionally, Nassau secured the top industrial user-sale YTD, with H&M USA, Inc. purchasing 3 Seaview Boulevard in Port Washington from Venture One Real Estate for $27.5 million or $332.85 per square foot.
Suffolk: Suffolk County reported nearly $1.2 billion in sales volume, a significant 35.3% jump YOY. The county also posted 194 transactions, a slight 1.5% decrease from H1 2025. Suffolk accounted for 63.6% of Long Island’s total deal volume, including seven of the top 10 transactions YTD. Industrial assets outperformed other property types, generating $290.5 million in sales across 52 transactions—highlighting the continued demand for well-positioned warehouse and manufacturing facilities. The largest transaction was Inland RE Group’s acquisition of 510 Horseblock Road in Farmingville from BRP Companies and BlackRock. The newly constructed 240-unit multifamily property sold for $190.0 million, equating to $788,382 per unit.
Outlook: Resilient Sales Activity Is Expected To Persist Despite Elevated Interest Rates
Nationwide sales activity continued to pick up speed in H1 2026 after a historic year in 2025, with institutional capital and bank lending persisting. The federal reserve has maintained its target rate so far this year and is expected to remain unchanged for the remainder of 2026, supporting investor confidence through a more predictable borrowing environment. While deal activity accelerated across most asset classes on Long Island, several categories dominated, including retail, industrial, and office properties. The top sales contained a mix of well-performing, institutional-grade properties and end-user sales as Long Island’s favorable demographics and strong fundamentals continued to attract investment. Robust momentum is expected to extend into the second half of the year.
