THE LONG ISLAND ASSOCIATION BUSINESS FACT …...Resource Guide Prepared By DR. JOHN A. RIZZO LIA Chief Economist 2 | LIA BUSINESS FACT BOOK, FALL 2018 THE LONG ISLAND ASSOCIATION BUSINESS

A Comprehensive Guide to Business

and Public Sector Activity on Long Island

THE LONG ISLAND ASSOCIATION BUSINESS FACT BOOK

FALL 2018

Contents

3 A Note to Readers

4 The Long Island Economy: General Trends 4 Economic Output 5 Balance of Payments 6 Education 7 Income 8 Employment and Earnings 12 Exports and Imports 13 Demography 16 Housing

21 The Long Island Economy: Individual Industry Sectors

21 Comparison of Private Industry Sectors 25 Financial & Business Services 26 Arts/Sports/Hospitality 27 Health Care Professions 28 Not-for-Profit Sector 29 Technology-Intensive Industries 30 Engineering and Architecture 31 Agriculture 32 Energy Sector 33 Higher Education 34 Commercial/Industrial Real Estate 36 Consumer Sector

38 Long Island’s Public Sector: 38 Government Employment

40 Long Island’s Economic Outlook

41 Economic Development Resource Guide

Prepared By DR. JOHN A. RIZZOLIA Chief Economist

2 | LIA BUSINESS FACT BOOK, FALL 2018

THE LONG ISLAND ASSOCIATION BUSINESS FACT BOOK

Fall 2018

A NOTE TO READERS

Modern suburbia began in Levittown as a planned com-munity for returning World War II veterans. Long Island’s popula-tion soon began to rise and new homes and businesses started to spread throughout Nassau and Suffolk Counties. Ap-proximately 70 years later, Long Island is an economic engine for the entire state.

Since 1926, the Long Island Association (“LIA”) has been the voice of Long Island and its business community. Throughout that time, we have played a leading role in driving economic development and supporting the growth of our region. While small businesses remain the heart of our economy, Long Island has now become known as an innovation hub featuring a burgeoning Research Corridor that utilizes both our world-class institutions and our highly-skilled workforce.

As we inch closer to a new decade, we must continue fostering an entrepreneurial ecosys-tem that keeps Long Island at the forefront of scientific discovery and technological advancement. We must continue investing in our critical infrastructure such as the Long Island Rail Road’s Third Track project and the offshore wind farm planned for off of our coast, both of which the LIA championed.

While we pursue these endeavors, it is equally imperative that public officials and private industry lead-ers work with the LIA to create more affordable housing, re-exam-ine the region’s tax structure and protect our environment to ensure Long Island remains a great place to live, work and play for future generations.

Accurate statistics and practical information about Long Island’s business climate pro-vide invaluable tools to help plan an effective economic strategy. This is why we biennially produce the LIA Business Fact Book which offers employers an additional resource to successfully manage their businesses. One of the many benefits of LIA membership includes complimentary copies and access to the guide, which is prepared by our Chief Economist, Dr. John A. Rizzo.

The LIA is proud to be the leading business organization in the region. We remain dedicated to advocating for the policies, programs and principles that make Long Island’s suburban economy a model to the rest of the nation.

KEVIN S. LAW President & CEOLong Island Association

LIA BUSINESS FACT BOOK, FALL 2018 | 3

THE LONG ISLAND ECONOMY: General Trends


ECONOMIC OUTPUT New York State’s economy has risen steadily, to $1.547 trillion by 2017. Long Island’s economy accounted for approximately 11.8 percent of this output, or $183 billion.

1,600,000

1,500,000

1,400,000

1,300,000

1,200,000

1,100,000

1,000,000

900,000

800,000

700,0001998 2000 2002 2004 2006 2008 2010 2012 2014 2016

TOTAL GROSS DOMESTIC PRODUCT FOR NEW YORK STATE (IN MILLIONS OF DOLLARS)

Source: U.S. Bureau of Economic Analysis: www.bea.gov.


In addition, Long Island sent Albany $4.7 billion more dollars than Albany sent to Long Island in 2013.

Long Island’s economy accounted for $182.5 billion, or almost 12 percent of Gross State Product in 2017.

BALANCE OF PAYMENTS Long Island has significant balance of payments deficits with respect to the federal and state governments. In each case, Long Island sent more dollars to Washington, D.C. and Albany than it received back. For example, Long Island sent Washington, D.C. $23.1 billion more than Washington, D.C. sent back to Long Island in 2013.

$45,000,000,000

$40,000,000,000

$35,000,000,000

$30,000,000,000

$25,000,000,000

$20,000,000,000

$15,000,000,000

$10,000,000,000

$5,000,000,000

$0

LONG ISLAND BALANCE OF PAYMENTS DEFICIT WITH FEDERAL GOVERNMENT

Revenues 2013 Total

Expenditures 2013 Total

$42,487,512,001

$19,421,391,640

LONG ISLAND BALANCE OF PAYMENTS DEFICIT WITH NEW YORK STATE

$16,000,000,000

$14,000,000,000

$12,000,000,000

$10,000,000,000

$8,000,000,000

$6,000,000,000

$4,000,000,000

$2,000,000,000

$0Revenues 2013 Total

Expenditures 2013 Total

$15,039,148,875

$10,376,546,684

Source: LIA Research Institute Report. “Balance of Payments Study.”Source: LIA Research Institute Report. “Balance of Payments Study.”

Sources: U.S. Department of Commerce: www.commerce.gov; U.S. Bureau of Economic Analysis: www.bea,gov; IHS Markit

GROSS PRODUCT BY REGION AND AS A PERCENTAGE OF GROSS STATE PRODUCT—NEW YORK, 2017

Total Gross Output % of Gross Regional ($ Billions) State Output

New York State 1,546.5 100.0Long Island 182.5 11.8NY Metro, Excluding Long Island 1,072.4 69.3Albany,‐Schenectady,‐Troy 54.5 3.5Binghamton 9.8 0.6Buffalo, Cheektowaga,‐Niagara Falls 60.0 3.9Elmira 3.4 0.2Glens Falls 5.2 0.3Ithaca 5.3 0.3Kingston 6.4 0.4Rochester 57.0 3.7Syracuse 33.7 2.2Utica‐Rome 11.1 0.7Watertown,‐Fort Drum 6.4 0.4Non-Metro 38.7 2.5

EDUCATIONAlmost 51 percent of Nassau County residents and 43 percent of Suffolk County residents have an Associate’s, Bachelor’s or Graduate degree.

EDUCATIONAL ATTAINMENT 2016

Subject Nassau Suffolk

Population 18 to 24 121,621 138,819 Less than High School 8.3% 10.6% High School Graduate 23.8% 28.0% Some College or Associate’s Degree 47.7% 45.1% Bachelor’s Degree or Higher 20.1% 16.3%

Population 25 Years and over 934,765 1,024,860 Less than 9th Grade 4.8% 4.7% 9th to 12th Grade, No Diploma 4.3% 5.3% High School Graduate 23.7% 28.9% Some College, No Degree 15.8% 17.7% Associate’s Degree 7.8% 9.0% Bachelor’s Degree 24.0% 18.8% Graduate or Professional Degree 19.6% 15.6%

Source: U.S. Census Bureau, 2016. American Community Survey, one-year estimates. www.census.gov.


EDUCATIONAlmost 51 percent of Nassau County residents and 43 percent of Suffolk County residents have an Associate’s, Bachelor’s or Graduate degree.

EDUCATIONAL ATTAINMENT 2016


Population 18 to 24 121,621 138,819 Less than High School 8.3% 10.6% High School Graduate 23.8% 28.0% Some College or Associate’s Degree 47.7% 45.1% Bachelor’s Degree or Higher 20.1% 16.3%

Population 25 Years and over 934,765 1,024,860 Less than 9th Grade 4.8% 4.7% 9th to 12th Grade, No Diploma 4.3% 5.3% High School Graduate 23.7% 28.9% Some College, No Degree 15.8% 17.7% Associate’s Degree 7.8% 9.0% Bachelor’s Degree 24.0% 18.8% Graduate or Professional Degree 19.6% 15.6%

Source: U.S. Census Bureau, 2016. American Community Survey, one-year estimates. www.census.gov.

INCOMEMedian family income was $102,044 in Nassau County and $90,128 in Suffolk County in 2016. Less than 10 percent of families in each county had family incomes below $25,000.

Nassau Suffolk Family Income Level Number As % of Total Number As % of Total

< $10,000 5,741 1.7% 7,232 2.0% $10,000 to $14,999 3,377 1.0% 5,062 1.4% $15,000 to $24,999 10,470 3.1% 12,655 3.5% $25,000 to $34,999 13,509 4.0% 17,356 4.8% $35,000 to $49,999 22,628 6.7% 27,118 7.5% $50,000 to $74,999 39,176 11.6% 51,344 14.2% $75,000 to $99,999 42,553 12.6% 49,898 13.8% $100,00 to $149,999 76,664 22.7% 84,609 23.4% $150,000 to $199,999 52,010 15.4% 50,982 14.1% >= $200,000 71,598 21.2% 55,321 15.3% Median Family Income ($) $102,044 $90,128

Source: U.S. Census Bureau, 2016 American Community Survey, 1 Year Estimates: www.census.gov


EMPLOYMENT BY INDUSTRY CIVILIAN POPULATION 16 YEARS AND OVER – 2016


Number of Civilian Employed Population 16 and Over 672,155 737,128

Occupation Agriculture, Forestry, Fishing 0.1% 0.5% Construction 5.8% 7.7% Manufacturing 4.6% 7.4% Wholesale Trade 3.3% 3.3% Retail Trade 10.3% 11.8% Transportation, Warehousing, Utilities 5.2% 5.3% Information 3.1% 2.6% Finance, Insurance, Real Estate 10.0% 7.0% Professional, Scientific, Management 12.8% 11.1% Education, Health Care, Social Assistance 28.2% 26.8% Arts, Entertainment, Recreation 7.3% 7.3% Other Services Except Public Administration 4.6% 4.3% Public Administration 4.8% 4.7%

Source: U.S. Census Bureau, 2016 American Community Survey, 1 Year Estimates: www.census.gov.

EMPLOYMENT AND EARNINGSJobs in health care, education and social assistance account for more than a quarter of the jobs in both Nassau (28.2 percent) and Suffolk (26.8 percent) Counties. Professional, scientific and management occupations, as well as retail trade, are also leading occupations among Long Island’s residents. Finance, insurance and real estate occupations are prevalent in Nassau County in particular.


EMPLOYMENT BY INDUSTRY CIVILIAN POPULATION 16 YEARS AND OVER – 2016


Number of Civilian Employed Population 16 and Over 672,155 737,128

Occupation Agriculture, Forestry, Fishing 0.1% 0.5% Construction 5.8% 7.7% Manufacturing 4.6% 7.4% Wholesale Trade 3.3% 3.3% Retail Trade 10.3% 11.8% Transportation, Warehousing, Utilities 5.2% 5.3% Information 3.1% 2.6% Finance, Insurance, Real Estate 10.0% 7.0% Professional, Scientific, Management 12.8% 11.1% Education, Health Care, Social Assistance 28.2% 26.8% Arts, Entertainment, Recreation 7.3% 7.3% Other Services Except Public Administration 4.6% 4.3% Public Administration 4.8% 4.7%



Long Island’s unemployment rate declined substantially during the first half of 2018. As of May 2018, Long Island’s unemployment rate was 3.5 percent—among the lowest regions in the state. Moreover, labor force participation and the number of people employed stood at multi-year highs.

May 2018 May 2017

Nassau-Suffolk 3.5% 4.1% Metro Areas 3.6% 4.4% Albany-Schenectady-Troy 3.6% 4.1% Binghamton 4.4% 5.1% Buffalo-Niagara Falls 4.3% 5.0% Dutchess-Putnam 3.6% 4.1% Elmira 4.7% 5.4% Glens Falls 4.0% 4.4% Ithaca 3.3% 4.0% Kingston 3.7% 4.3% New York City 3.4% 4.3% Orange-Rockland-Westchester 3.8% 4.3% Rochester 4.0% 4.7% Syracuse 4.1% 4.8% Utica-Rome 4.3% 4.9% Watertown-Fort Drum 5.0% 6.0% Non-Metro Counties 4.5% 5.1%

Source: New York State Labor Department: www.labor.ny.gov/stats.

Employment on Long Island in professional and technical occupations is projected to grow by more than 13 percent from 2014 - 2024. This translates into a gain of 187,360 jobs. The rate of jobs growth is projected to be highest in health care and technical fields (19.6 percent), life, physical and social sciences (17.1 percent) and community and social services (17.8 percent).

EARNINGS TRENDSEarnings have risen steadily for both male and female workers in recent years.


MEDIAN WEEKLY EARNINGS, BY GENDER: 2014-2018

Total $ Men $ Women $ Total $ Men $ Women $

2014 1st Quarter 790 865 716 335 367 304 2nd Quarter 782 861 715 330 364 302 3rd Quarter 798 879 722 336 370 304 4th Quarter 794 876 723 335 369 305




2018 1st Quarter 873 955 777 350 383 311 2nd Quarter 879 962 779 351 384 311

Source: US Bureau of Labor Statistics. www.bls.gov.

In current dollars

Median weekly earnings

In constant (1982-84) dollars

In other non-professional and non-technical occupations, the rate of jobs growth is projected to be highest in health care support (27.6 percent) and personal care and service (24.6 percent).

PROJECTED EMPLOYMENT GROWTH IN SELECTED PROFESSIONAL AND TECHNICAL OCCUPATIONS

Employment Employment Net Percent Occupation 2014 2024 Change Change

All 1,397,450 1,584,810 187,360 13.4% Management 68,800 77,170 8,370 12.2% Business/Financial 59,440 68,390 8,950 15.1% Computer/Mathematical 24,450 28,520 4,070 16.6% Architecture/Engineering 16,170 17,430 1,260 7.8% Life, Physical and Social Sciences 10,780 12,620 1,840 17.1% Community and Social Services 18,630 21,950 3,320 17.8% Legal 14,080 15,240 1,160 8.2% Education, Training and Library 110,070 121,380 11,310 10.3% Health Care and Technical 87,170 104,220 17,050 19.6%


PROJECTED EMPLOYMENT GROWTH IN ALL OTHER OCCUPATIONS

Employment Employment Net Percent Occupation 2014 2024 Change Change

Arts, Design, Entertainment, Sports and Media 24,180 25,950 1,770 7.3% Health Care Support 47,940 61,150 13,210 27.6% Protective Service 31,370 34,880 3,510 11.2% Food Preparation and Service 103,820 126,950 23,130 22.3% Building, Grounds and Maintenance 59,130 68,270 9,140 15.5% Personal Care and Service 65,580 81,720 16,140 24.6% Sales 151,730 163,370 11,640 7.7% Office and Administrative Support 259,110 276,400 17,290 6.7% Farming, Fishing and Forestry 2,930 2,990 60 2.0% Construction and Extraction 68,920 85,540 16,620 24.1% Installation, Maintenance and Repair 46,620 51,940 5,320 11.4% Production 53,170 55,750 2,580 4.9% Transportation and Moving 73,360 82,990 9,630 13.1%




EXPORTS AND IMPORTSNew York State accounted for 5.0% of the dollar value of U.S. exports and 5.4% of the dollar value of U.S. imports in 2017.

DOLLAR VALUE OF NEW YORK STATE EXPORTS AND IMPORTS – NEW YORK STATE, 2012-2017

Year

2012 81,359 5.3 124,453 5.52013 83,995 5.3 129,833 5.72014 88,834 5.5 134,675 5.72015 83,125 5.5 133,199 5.92016 76,690 5.3 130,071 5.92017 77,915 5.0 126,623 5.4

Dollar Value of Exports ($ Millions)

% of U.S. Exports

Dollar Value of Imports ($ Millions)

% of U.S. Imports

Source: U.S. Census Bureau: www.census.gov.

LEADING SOURCES OF EXPORTS BY COUNTRY – NEW YORK STATE, 2017

Trade Partner

Canada 15,398 2.4%Hong Kong 8,858 19.2%United Kingdom 6,760 22.0%Switzerland 5,593 -13.4%Israel 4,728 -3.4%Belgium 3,389 -22.0%China 3,168 14.3%Mexico 3,140 5.4%India 2,968 -15.4%Germany 2,718 22.0%


% Change 2016-2017

Source: U.S. Department of Commerce: www.commerce.gov.

LEADING SOURCES OF IMPORTS BY COUNTRY – NEW YORK STATE, 2017

Partner

China 20,662 -0.2%Canada 16,965 -3.7%India 11,388 -4.0%Israel 7,726 0.7%France 6,882 -6.0%Italy 5,939 2.7%Switzerland 5,492 -34.2%Germany 5,013 18.6%United Kingdom 4,885 1.4%Belgium 3,806 -9.9%


% Change 2016-2017

Source: U.S. Department of Commerce: www.commerce.gov.

Canada is the leading source of exports from New York State, accounting for almost $15.4 billion in trade.

Most imports came from China and Canada, totaling more than $37 billion in 2017.

AGE AND GENDER DISTRIBUTION IN NASSAU AND SUFFOLK COUNTIES

Nassau as % Suffolk as % Number of Total Number of Total

Total Population 1,369,514 100 1,492,953 100Male 665,584 48.6 736,026 49.3Female 703,930 51.4 756,927 50.718 to 64 1,073,699 78.4 1,173,461 78.665 Years and Over 238,295 17.4 244,844 16.4Median Age (years) 41.6 N/A 41.6 N/A


DEMOGRAPHYThe median age is 41.6 years in Nassau County and Suffolk County. Almost 78 percent of the population are adults aged 18 or over in both counties. The proportion of females is slightly higher than males in both counties.

A shrinking proportion of millennials are heads-of-households. In 1970, more than 86 percent of persons aged 25-34 were heads of their own households. But by 2016, this proportion had fallen to less than 37 percent.


Long Island Millennials Percent of 25-34 Year-Olds Who Are Heads-of-Households

vs. Non-Heads-of-Households

100

90

80

70

60

50

40

30

20

10

01970 1980 1990 2000 2010 2016

Non-Heads-of-Households

Heads-of-Households

Source: U.S. Census Bureau, Decennial Census, 5 and 1 Percent Samples; ACS 2016; IPUMS.org online data analysis tool, Minnesota Population Center, University of Minnesota.

LEADING SOURCES OF EXPORTS BY COUNTY – NEW YORK STATE, 2017

AMT AMT From Nassau ($ Millions) From Suffolk ($ Millions)

Hong Kong 1,300 Canada 564Switzerland NA* United Kingdom 343United Kingdom 468 Hong Kong 302Israel 419 Mexico 292United Arab Emirates 413 China 185

LONG ISLAND’S TOP FIVE MERCHANDISE EXPORT CATEGORIES, 2015

Category Amount ($ Millions)

Medical devices, dental supplies, musical instruments and other miscellaneous manufactured products 3,200

Semiconductors, electronic components and computer products 1,600

Pharmaceuticals, vitamins and dietary supplements 1,300

Aerospace and automobile parts 417

Electrical equipment 318

* Switzerland was the second-largest destination for Nassau County, accounting for between $468 million and $1.3 billion in sales, but the federal government would not disclose the exact amount. Source: U.S. Census Bureau. www.census.gov.

Source: U.S. Census Bureau. www.census.gov.

LEADING SOURCES OF IMPORTS BY COUNTRY – NEW YORK STATE, 2017

Partner

China 20,662 -0.2%Canada 16,965 -3.7%India 11,388 -4.0%Israel 7,726 0.7%France 6,882 -6.0%Italy 5,939 2.7%Switzerland 5,492 -34.2%Germany 5,013 18.6%United Kingdom 4,885 1.4%Belgium 3,806 -9.9%

Hong Kong is the leading source of exports from Nassau County while Canada is Suffolk County’s leading source of exports.

Medical devices and dental supplies comprise the largest category of exports from Long Island, with approximately $3.2 billion in exports in 2015.


Source: LIA Research Institute Report. ”The millennial population may be growing again, but millennial household formation is shrinking.”

Per

cent

PERCENTAGE OF 25-34 YEAR-OLDS ON LONG ISLAND LIVING WITH AT LEAST ONE PARENT

100

90

80

70

60

50

40

30

20

10

01970 1980 1990 2000 2010 2016 U.S. 2016

9.915.8

26.3 23.734.3

44.4

16

The annual number of births has declined over time, from 37,226 in 2010 to 29,735 by 2016.

37,226

TOTAL ANNUAL BIRTHS NASSAU-SUFFOLK

50,000

45,000

40,000

35,000

30,000

25,000

20,000

2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16

33,893

29,720

30,080

29,735

Source: LIA Research Institute Report. “Long Island’s declining birth rate: Implications for our region’s future.”

The declining proportion of millennials as heads-of-households reflects a growing proportion of these individuals who live with at least one parent. While fewer than 10 percent lived with their parents in 1970, by 2016 this had increased more than four-fold, to 44.4 percent. This is almost three times the national average of 16.

However, the number of young adults on Long Island is starting to rise. From 2010-2015, the number of 20-34-year-olds increased by 7.6 percent. This is the first time this age group has risen since 1990.

Long Island’s population is racially diverse, with minorities comprising more than one-third of the population.

The poverty rate has risen in both Nassau and Suffolk Counties over time, as the chart indicates.


Population

1,000,000

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

NUMBER OF RESIDENTS AGE 20-34 NASSAU-SUFFOLK

LONG ISLAND RACE AND HISPANIC ORIGIN

2016

2010 2015

478,988515,391

Source: LIA Research Institute Report. “Millennials increase on Long Island but we still need many more of them.”

Source: LIA Research Institute Report. “Long Island’s changing demographics. America’s first suburb is a diverse suburb.”

POVERTY RATE 2005 VS. 2016

100

90

80

70

60

50

40

30

20

10

0NASSAU SUFFOLK

5.2 4.85.9 7.3


2005

2016

18.0HISPANIC

6.6ASIAN

9.2BLACK

64.7WHITE

1.3TWO OR MORE RACES

0.2NATIVE AMERICAN

HOUSINGTotal housing units in Nassau and Suffolk Counties remained essentially flat between 2013 and 2016. A similar pattern emerged for New York State.

HOUSING UNITS BY GEOGRAPHIC LOCATION: 2013-2016

Location 2013 2014 2015 2016

New York 8,113,270 8,153,309 8,171,725 8,191,568Nassau County 467,241 467,621 467,256 467,127Suffolk County 569,196 570,122 570,194 570,464


PHYSICAL CHARACTERISTICS OF OWNER-OCCUPIED HOUSING UNITS


Number of Owner-Occupied Units 353,420 389,182Unit Type 1, detached 88.7% 89.9%1, attached 2.7% 5.0%2 apartments 3.0% 1.6%3 to 4 apartments 0.5% 0.8%5 to 9 apartments 0.5% 0.7%10 or more apartments 4.5% 1.4%Mobile home or other 0.2% 0.8%

Source: U.S. Census Bureau, 2012-2016 American Community Survey, 5 Year Estimates: www.census.gov.


PHYSICAL CHARACTERISTICS OF RENTER-OCCUPIED HOUSING UNITS


Number of Renter-Occupied Units 86,810 100,576Unit Type 1, detached 28.0% 40.9%1, attached 3.8% 4.7%2 apartments 22.1% 12.5%3 to 4 apartments 8.1% 7.7%5 to 9 apartments 5.3% 10.8%10 or more apartments 32.5% 22.7%Mobile home or other 0.2% 0.8%


Apartments account for 68.0 percent of renter-occupied units in Nassau County and 53.7 percent in Suffolk. Single unit detached homes also constitute a substantial portion of housing units among renters, especially in Suffolk County (40.9 percent).

AGE DISTRIBUTION OF OWNER-OCCUPIED HOUSING UNITS Less than 10 percent of owner-occupied homes in Nassau County (9.9 percent) were built in 1980 or later. Approximately 24 percent of homes in Suffolk (24.2 percent) were built in 1980 or later. There was very little home construction in 2010 or later, the years following the Great Recession.


Number of Owner-Occupied Units 353,420 389,182Year Structure Built 2014 or later 0.1% 0.1%2010 to 2013 0.5% 0.5%2000 to 2009 2.9% 6.5%1980 to 1999 6.4% 17.1%1960 to 1979 17.0% 41.3%1940 to 1959 53.6% 25.8%1939 or earlier 19.6% 8.7%



Renter-occupied homes are older for residents of Nassau County: 57.8 percent of these housing units were built prior to 1960 in Nassau County, compared to 30.9 percent in Suffolk.

Monthly owner costs are relatively high compared to household incomes in both Nassau and Suffolk Counties. In Nassau County, 34.6 percent of homes with mortgages have monthly owner costs that equal or exceed 35 percent of the household income. The corresponding figure for Suffolk County is 37.6 percent. This raises concerns about affordability since mortgages account for most of a home’s value in many cases.


Number of Renter-Occupied Units 86,810 100,576Year Structure Built 2014 or later 0.1% 0.2%2010 to 2013 1.3% 0.7%2000 to 2009 5.3% 10.8%1980 to 1999 10.7% 22.7%1960 to 1979 24.8% 34.6%1940 to 1959 35.9% 19.7%1939 or earlier 21.9% 11.2%


SELECTED MONTHLY OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME IN 2016— HOMES WITH MORTGAGES

Value Nassau Suffolk

Homes with Mortgages 227,722 274,895Less than 20.0 percent 27.8% 23.4%20.0 to 24.9 percent 15.2% 14.7%25.0 to 29.9 percent 12.8% 14.0%30.0 to 34.9 percent 9.6% 10.3%35.0 percent or more 34.6% 37.6%

Source: U.S. Census Bureau, 2016 American Community Survey, 1 Year Estimates, www.census.gov.


Asking monthly rents for apartment space on Long Island vary widely, with estimates ranging from $1,407 to $3,524. During the past 10 years, the market as a whole has recorded an annual average increase of 3.2%.

APARTMENT SPACE—ASKING MONTHLY RENTS*

Low 25th Percentile Mean Median 75th Percentile High

$1,407 $1,707 $2,110 $1,917 $2,317 $3,524

* As of August, 2018. Source: Reis Reports: www.reisreports.com.


There remains relatively little new apartment space on Long Island—just 10 percent of available inventory was built after 2009. Moreover, the average asking rent for apartment space built after 2009 was $3,196, far above the median of $1,917. Most apartment space on Long Island – 63 percent – was constructed before 1980.

APARTMENT SPACE – ASKING RENTS AND INVENTORY BY BUILDING AGE

Percentage Average of Building Year Built Asking Rent Inventory

Before 1970 $1,997 34%1970-1979 $1,788 29%1980-1989 $1,809 6%1990-1999 $2,217 11%2000-2009 $2,493 9%After 2009 $3,196 10%

As of August 2018. Source: Reis Reports: www.reisreports.com.

Vacancy rates for apartment space on Long Island are among the 10 lowest rates nationally, ranging from 0.0 percent to 18.7 percent, with a median vacancy rate of just 3.0 percent. This means that the typical Long Island apartment complex is nearly full, suggesting a shortage of available apartment housing.

APARTMENT SPACE – VACANCY RATE DISTRIBUTION*


0.0% 1.6% 3.5% 3.0% 4.5% 18.7%

*As of August 2018. Source: Reis Reports: www.reisreports.com.


COMPARISON OF PRIVATE INDUSTRY SECTORSThere are more than 97,000 business establishments on Long Island. Long Island has more than 1.1 million employed workers, with an annual payroll of almost $61 billion. Health care and social assistance, retail trade, and accommodation and food services are the largest employers.

NASSAU-SUFFOLK BUSINESS PATTERNS 2016 Number of Number of Paid Annual Payroll Sector Establishments Employees (Thousands of $)

Total for all sectors 97,409 1,135,577 $60,931,893 Agriculture, forestry, fishing and hunting 92 326 $13,385 Mining, quarrying and oil and gas extraction 24 182 $17,154 Utilities 91 4,840 $511,897 Construction 11,692 76,592 $5,235,082 Manufacturing 2,865 67,817 $3,844,506 Wholesale trade 6,313 70,046 $5,085,779 Retail trade 12,681 163,091 $4,999,113 Transportation and warehousing 2,414 39,375 $1,791,160 Information 1,357 25,098 $2,192,860 Finance and insurance 5,019 56,348 $6,234,911 Real estate and rental leasing 4,213 17,370 $1,052,369 Professional, scientific and technical services 12,760 87,847 $6,633,041 Management of companies and enterprises 380 25,055 $2,546,935 Administrative support and waste management 6,511 68,225 $2,825,962 Educational services 1,359 34,221 $1,161,353 Health care and social assistance 10,588 218,215 $12,020,661 Arts, entertainment and recreation 1,729 22,505 $806,585 Accommodation and food services 7,452 101,554 $2,248,126 Other services (except public administration) 9,702 56,695 $1,705,424 Industries not classified 167 175 $5,590

Source: U.S. Census Bureau, County Business Patterns. www.census.gov.

THE LONG ISLAND ECONOMY: Individual Industry Sectors


Average earnings vary substantially by major industry group, from $23,907 in accommodation and food services to $124,388 in finance and insurance.

AVERAGE EARNINGS BY MAJOR INDUSTRY GROUPS, 2017

Industry Average Earnings

Construction $71,796 Manufacturing $66,760 Wholesale Trade $82,609 Retail Trade $34,384 Transportation and Warehousing $49,526 Information $89,162 Finance and Insurance $124,388 Real Estate and Rental Leasing $65,977 Professional and Technical Services $78,866 Administrative and Waste Services $44,339 Educational Services $41,779 Health Care and Social Assistance $58,654 Arts, Entertainment and Recreation $34,752 Accommodation and Food Services $23,907 Personal and Laundry Services $26,301 Other Services $32,891 Government $73,909




Private sector jobs grew at 1.2 percent on Long Island during the past year. This may reflect Long Island’s low unemployment rate; that is, as the market approaches full employment, rates of growth may slow. The largest jobs gains were seen in service providing (+10,100), private service providing (+9,000) and natural resources, mining and construction (+6,500). The most jobs were lost in durable goods (-1,300) and manufacturing (-1,000).

JOBS TRENDS BY INDUSTRY

June June Net PercentIndustry 2018 2017 Change Change

Total Nonfarm 1,386,500 1,370,900 15,600 1.1% Total Private 1,186,000 1,171,500 14,500 1.2% Goods Producing 160,500 150,000 5,500 3.7% Natural Resources, Mining and Construction 89,200 82,700 6,500 7.9% Manufacturing 71,300 72,300 -1,000 -1.4% Durable Goods 38,300 39,600 -1,300 -3.3% Non-Durable Goods 33,000 32,700 300 0.9% Service Providing 1,226,000 1,215,900 10,100 0.8% Private Service Providing 1,025,500 1,016,500 9,000 0.9% Trade, Transportation and Utilities 281,700 278,900 2,800 1.0% Wholesale Trade 70,600 70,400 200 0.3% Merchant Wholesalers, Durable Goods 34,300 33,800 500 1.5% Merchant Wholesalers, Non-Durable Goods 27,700 27,700 0 0.0% Retail Trade 165,200 164,900 300 0.2% Building Material and Garden Equipment 14,200 13,900 300 2.2% Food and Beverage Stores 37,500 37,400 100 0.3% Grocery Stores 30,900 30,900 0 0.0% Health and Personal Care Stores 13,300 13,500 -200 -1.5% Clothing and Clothing Accessories Stores 19,200 19,300 -100 -0.5% General Merchandise Stores 25,100 25,800 -700 -2.7% Department Stores 17,300 18,100 -800 -4.4% Transportation, Warehousing and Utilities 45,900 43,600 2,300 5.3% Utilities 5,000 4,900 100 2.0%

Source: U.S. Census Bureau: www.census.gov., County Business Patterns.

JOBS TRENDS BY OCCUPATION

The largest jobs gains by occupation were seen in leisure and hospitality (+4,200), food services and drinking places (+4,100) and accommodation and food services (+4,000). The most jobs were lost in finance and insurance (-2,000) and financial activities (-1,200).

June June Net PercentOccupation 2018 2017 Change Change

Transportation and Warehousing 40,900 38,700 2,200 5.7% Couriers and Messengers 6,100 5,700 400 7.0% Information 18,300 18,900 -600 -3.2% Broadcasting (except Internet) 1,000 1,000 0 0.0% Telecommunications 7,500 8,200 -700 -8.5% Financial Activities 72,100 73,300 -1,200 -1.6% Finance and Insurance 52,500 54,500 -2,000 -3.7% Credit Intermediation and Related Activities 20,100 20,200 -100 -0.5% Depository Credit Intermediation 11,700 11,300 400 3.5% Insurance Carriers and Related Activities 27,300 27,200 100 0.4% Real Estate and Rental and Leasing 19,600 18,800 800 4.3% Real Estate 15,000 14,600 400 2.7% Professional and Business Services 182,200 179,600 2,600 1.4% Professional, Scientific and Technical Services 82,800 83,100 -300 -0.4% Legal Services 18,500 19,500 -1,000 -5.1% Accounting, Tax Prep., Bookkeeping and Payroll Services 13,500 13,500 0 0.0% Management of Companies and Enterprises 16,500 16,400 100 0.6% Admin. & Supp. Waste Management Services 82,900 80,100 2,800 3.5% Education and Health Services 265,800 265,200 600 0.2% Educational Services 38,500 38,600 -100 -0.3% Health Care and Social Assistance 227,300 226,600 700 0.3% Ambulatory Health Care Services 87,400 87,600 -200 -0.2% Hospitals 66,200 66,200 0 0.0% Nursing and Residential Care Facilities 35,700 35,200 500 1.4% Social Assistance 38,000 37,600 400 1.1% Leisure and Hospitality 143,100 138,900 4,200 3.0% Arts, Entertainment and Recreation 28,700 28,500 200 0.7% Amusement, Gambling and Recreation 21,700 22,400 -700 -3.1% Accommodation and Food Services 114,400 110,400 4,000 3.6% Food Services and Drinking Places 107,400 103,300 4,100 4.0% Other Services 62,300 61,700 600 1.0% Personal and Laundry Services 26,200 25,500 700 2.7%

Source: New York State Department of Labor: www.labor.ny.gov/stats.



FINANCIAL / BUSINESS SERVICESJobs in financial and business services pay relatively high wages. Average earnings for management analysts exceed $102,000. Experienced workers in many of these fields earn close to or better than $100,000 per year.

JOBS AND WAGES IN SELECTED BUSINESS AND FINANCIAL OCCUPATIONS, 2018

Title Employment Mean Median Entry Experienced*

Agents and Business Managers of Artists, Performers and Athletes n/a $102,260 $98,860 $75,220 $115,780 Buyers and Purchasing Agents 2,950 $71,240 $69,720 $44,370 $84,670 Claims Adjusters, Examiners and Investigators 4,540 $67,930 $64,160 $47,010 $78,400 Insurance Appraisers and Auto Damage 270 $64,280 $60,530 $51,150 $70,850 Compliance Officers 2,180 $73,900 $69,550 $48,140 $86,780 Cost Estimators 2,220 $75,760 $65,260 $36,280 $95,500 Human Resources Specialists 3,620 $73,160 $67,250 $47,650 $85,910 Labor Relations Specialists n/a $77,250 $68,520 $46,670 $92,530 Logisticians 410 $87,610 $83,700 $58,820 $102,010 Management Analysts 4,000 $139,380 $107,260 $61,560 $178,300 Fundraisers 430 $59,550 $56,660 $33,110 $72,760 Compensation, Benefits and Job Analysis Specialists 810 $75,510 $72,010 $47,740 $89,400 Training and Development Specialists 2,260 $70,620 $66,290 $42,990 $84,440 Market Research Analysts and Marketing Specialists 4,480 $69,620 $60,930 $35,940 $86,450 Business Operations Specialists, All Other** 2,870 $80,500 $74,990 $46,030 $97,740 Accountants and Auditors 13,440 $90,080 $82,630 $56,630 $106,800 Appraisers and Assessors of Real Estate 580 $87,570 $75,470 $52,570 $105,070 Budget Analysts 280 $93,030 $93,320 $63,570 $107,750 Credit Analysts 810 $85,480 $71,090 $46,010 $105,210 Financial Analysts 1,700 $92,620 $80,220 $56,720 $110,570 Personal Financial Advisors 1,740 $108,820 $88,820 $47,090 $139,680 Insurance Underwriters 940 $75,160 $69,500 $50,050 $87,720 Financial Examiners 290 $103,850 $96,350 $56,140 $127,700 Credit Counselors 230 $53,140 $47,550 $37,050 $61,180 Loan Officers 1,860 $109,840 $85,410 $44,430 $142,550 Tax Examiners and Collectors, and Revenue Agents 1,230 $64,050 $59,990 $47,890 $72,130 Tax Preparers n/a $46,150 $42,040 $26,300 $56,070 Financial Specialists, All Other 280 $78,740 $78,600 $52,430 $91,900

* Experienced wage: The mean (average) of the top two-thirds of wages in an occupation. New York State Department of Labor. www.labor.ny.gov. **All other refers to all other jobs within the same field. Thus, for example, “financial specialist, all other” means financial specialists other than accountants and auditors, budget analysts, and so on down to tax preparers. So “financial specialists, all other” means all remaining financial specialists besides these. The same logic applies to “all other” in subsequent tables below.


ARTS, SPORTS, HOSPITALITY INDUSTRIESEarnings in arts, sports and hospitality industries vary widely, from a low of $35,760 for floral designers to $111,450 for art directors.

JOBS AND WAGES IN SELECTED ARTS, DESIGN, ENTERTAINMENT, SPORTS AND MEDIA OCCUPATIONS, 2018

Title Employment Mean Median Entry Experienced

Art Directors 210 $111,450 $92,330 $68,700 $132,800 Commercial and Industrial Designers 170 $73,290 $74,340 $42,200 $88,830 Fashion Designers 210 $63,370 $51,190 $30,920 $79,600 Floral Designers 460 $35,760 $35,600 $26,820 $40,220 Graphic Designers 1920 $50,660 $48,440 $31,650 $60,170 Interior Designers 380 $52,710 $45,410 $32,580 $62,780 Producers and Directors 330 $81,810 $62,980 $42,020 $101,700 Coaches and Scouts 1,610 $57,490 $43,410 $30,130 $71,160 Choreographers n/a $60,550 $47,500 $35,150 $73,240 Reporters and Correspondents n/a $49,050 $42,420 $28,400 $59,370 Public Relations Specialists 1,210 $69,600 $66,300 $41,600 $83,600 Editors 1,020 $70,340 $63,410 $42,670 $84,180 Technical Writers 270 $70,200 $67,070 $47,230 $81,680 Writers and Authors 290 $89,820 $61,420 $29,640 $119,910 Media and Communication Workers, All Other n/a $46,940 $37,980 $32,190 $54,310 Audio and Video Equipment Technicians 260 $50,220 $46,320 $33,380 $58,650 Photographers 480 $47,960 $28,300 $22,880 $61,010



HEALTH CARE PROFESSIONSEarnings for health care professionals are generally quite high, well above $100,000 in many of these occupations.

JOBS AND WAGES IN SELECTED HEALTH CARE PRACTITIONER AND TECHNICAL OCCUPATIONS, 2018


Chiropractors 510 $116,040 $92,360 $73,250 $137,430 Dentists, General 1,230 $199,710 $165,470 $114,120 $242,510 Dietitians and Nutritionists 640 $60,830 $61,950 $37,480 $72,510 Optometrists 490 $128,320 $127,340 $90,670 $147,140 Pharmacists 2,820 $127,070 $127,580 $100,700 $140,250 Family and General Practitioners 410 $225,090 $196,540 $141,520 $266,870 Psychiatrists 530 $156,070 $152,010 $94,320 $186,950 Surgeons 430 $288,340 n/a n/a n/a Physicians and Surgeons, All Other 8,060 $197,730 $193,660 $75,040 $259,080 Physician Assistants 2,400 $115,330 $118,930 $89,860 $128,060 Podiatrists 380 $156,440 $129,250 $89,130 $190,090 Occupational Therapists 1,470 $87,470 $83,170 $65,180 $98,610 Physical Therapists 3,380 $88,960 $89,050 $66,550 $100,160 Radiation Therapists 140 $114,320 $112,540 $86,020 $128,470 Recreational Therapists 310 $51,970 $49,680 $36,770 $59,570 Respiratory Therapists 1,070 $80,160 $79,090 $71,310 $84,590 Speech-Language Pathologists 1,940 $100,600 $103,680 $63,290 $119,260 Registered Nurses 28,600 $89,690 $91,460 $63,440 $102,810 Nurse Practitioners 1,990 $117,460 $119,760 $98,770 $126,810 Audiologists 250 $89,360 $89,260 $74,910 $96,590 Health Diagnosing and Treating Practitioners, All Other 210 $72,330 $67,030 $45,050 $85,980 Health Care Practitioners and Technical Workers, All Other n/a $86,660 $90,390 $63,000 $98,490


THE NOT-FOR-PROFIT SECTORSalaries in occupations in the not-for-profit sector are relatively low. Even for experienced workers, the average salary is below $60,000 in a number of these occupations.

JOBS AND WAGES IN SELECTED COMMUNITY AND SOCIAL SERVICE OCCUPATIONS, 2018


Substance Abuse, Behavioral Disorder and Mental Health Counselors 1,750 $47,200 $40,490 $32,470 $54,560 Educational, Guidance, School and Vocational Counselors 2,150 $86,330 $87,890 $48,050 $105,480 Rehabilitation Counselors 860 $39,380 $31,580 $26,940 $45,600 Counselors, All Other n/a $55,310 $56,100 $32,420 $66,760 Child, Family and School Social Workers 2,290 $67,150 $57,050 $39,690 $80,890 Health Care Social Workers 1,570 $59,870 $62,060 $37,160 $71,230 Mental Health and Substance Abuse Social Workers 1,200 $61,340 $59,790 $44,170 $69,920 Social Workers, All Other 930 $71,390 $71,760 $54,340 $79,910 Health Educators 380 $45,340 $35,770 $26,170 $54,920 Probation Officers and Correctional Treatment Specialists 460 $80,270 $78,730 $67,730 $86,550 Social and Human Service Assistants 2,970 $37,890 $35,060 $26,720 $43,470 Community Health Workers 530 $47,000 $40,530 $25,770 $57,620 Community and Social Service Specialists, All Other 570 $58,480 $57,880 $37,940 $68,750 Clergy 1,100 $59,090 $53,460 $26,080 $75,590 Directors, Religious Activities and Education 540 $46,050 $38,700 $23,750 $57,200 Religious Workers, All Other 130 $26,420 $23,580 $18,250 $35,340



TECHNOLOGY-INTENSIVE INDUSTRIESEarnings in technology-intensive industries are relatively high and fairly similar across occupations. The highest mean salaries in selected computer and mathematical occupations were systems software occupations ($116,020) and software developers, applications ($105,040) and the lowest were web developers ($72,340) and computer network support specialists ($77,980).

JOBS AND WAGES IN SELECTED COMPUTER AND MATHEMATICAL OCCUPATIONS, 2018


Computer Systems Analysts 3,430 $92,840 $86,450 $60,510 $109,010 Information Security Analysts 880 $104,500 $96,360 $58,220 $127,640 Computer Programmers 2,270 $90,620 $86,570 $45,180 $113,340 Software Developers, Applications 3,590 $105,040 $99,460 $66,520 $124,310 Software Developers, Systems Software 2,480 $116,020 $116,960 $73,190 $137,440 Web Developers 850 $72,340 $66,910 $39,150 $88,930 Database Administrators 800 $94,010 $89,550 $58,210 $111,920 Network and Computer Systems Administrators 3,010 $91,880 $86,800 $64,750 $105,440 Computer Network Architects 1,170 $104,100 $100,810 $69,580 $121,360 Computer Network Support Specialists 1,500 $77,980 $69,110 $51,740 $91,110 Operations Research Analysts 270 $90,400 $86,370 $62,500 $104,350



ENGINEERING AND ARCHITECTURAL INDUSTRIES Earnings are high in the engineering and architectural fields and similar across occupations. The highest mean salaries in selected engineering and architectural occupations were computer hardware engineers ($106,380) and electrical engineers ($103,990) and the lowest were architects, except landscape and naval ($76,580) and industrial engineers ($94,080).

JOBS AND WAGES IN SELECTED ENGINEERING AND ARCHITECTURAL OCCUPATIONS, 2018


Architects, Except Landscape and Naval 550 $82,010 $76,580 $47,550 $99,250 Civil Engineers 1,930 $98,830 $95,070 $65,020 $115,740 Computer Hardware Engineers 180 $106,380 $99,780 $58,640 $130,330 Electrical Engineers 1,380 $103,990 $101,860 $72,930 $119,530 Electronics Engineers, Except Computer 770 $100,570 $96,210 $73,500 $114,110 Environmental Engineers 510 $97,550 $90,410 $57,470 $117,590 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors 240 $95,020 $89,830 $60,140 112,450 Industrial Engineers 1,310 $94,080 $93,090 $64,230 $109,000 Mechanical Engineers 1,340 $100,800 $95,920 $67,770 $117,310 Engineers, All Other 570 $103,640 $101,530 $60,750 $125,090



AGRICULTURE Earnings of workers in this industry are relatively modest with mean wages ranging from $25,100 for farmhouse workers, crop, nursery and greenhouse workers to $55,790 for agricultural inspectors. Nevertheless, Suffolk County is one of New York’s most important agricultural regions, thanks to its climate and proximity to markets throughout the New York Metropolitan Area. Suffolk County is ranked first statewide in the wholesale value of crops and sales of aquaculture, poultry and egg products. This provides residents and visitors a wide range of products and agri-tourism activities to enjoy.

JOBS AND WAGES IN SELECTED AGRICULTURAL OCCUPATIONS, 2018


Farming, Fishing and Forestry Occupations 360 $31,950 $25,870 $22,880 $36,910First-Line Supervisors of Farming, Fishing and Forestry Workers n/a $50,290 $49,480 $29,140 $60,870Agricultural Inspectors n/a $55,790 $55,390 $35,600 $65,880Farmworkers and Laborers, Crop, Nursery and Greenhouse 240 $25,100 $24,130 $22,880 $26,810Farmworkers, Farm, Ranch and Aquacultural Animals n/a $34,270 $29,070 $22,880 $40,400



Annual Wages ($)


ENERGY SECTOR Energy prices have fallen markedly in recent years. Gasoline prices averaged $2.66 per gallon in the New York Metropolitan Area in November 2017. As the chart below indicates, gasoline prices have begun to rise again slowly after falling for the past several years.

AVERAGE PRICE FOR GASOLINE, THE UNITED STATES AND METROPOLITAN NEW YORK AREA, 2013-2017 (As of November of each year)

Per Gallon

$4.00

$3.00

$2.00

$1.00

$0.00Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2017


United States

New York


LONG ISLAND’S COLLEGES AND UNIVERSITIES AT A GLANCE – 2015

Enrollment 44,500Percent New Yorkers 76%Percent Out-of-State 12%Percent International 11%Degrees Granted 11,300Undergraduate Degrees 6,100Graduate Degrees 5,200Employment 20,700 Institutional 9,400 Construction 600 Indirect/Induced 10,700Payroll $1.1 billion Institutional $560 million Construction $38 million Indirect/Induced $538 millionEconomic Impact Institutional Impact $2.5 billion Student and Visitor Spending $413 million Academic Medical Center $485 millionTotal Economic Impact $3,400,000,000

Source: Commission on Independent Colleges and Universities Report “Economic Impact of Independent Colleges and Universities: Long Island” (2015): www.cicu.org.

HIGHER EDUCATION Independent, not-for-profit colleges and universities on Long Island enrolled 44,500 students in 2015. These campuses employ 20,700 individuals and contribute $3.4 billion to the New York State economy per year.

COMMERCIAL/INDUSTRIAL REAL ESTATE

OFFICE SPACE

The Long Island office market is comprised of 43.3 million square feet in five geographic concentrations ranging in size from the 10.5 million square foot East Nassau submarket to the 7.1 million square foot Southwest Nassau submarket. In Western Suffolk, there is 10.3 million square feet and 8.1 million square feet in Northwest Nassau. Over the past 10 years, the Northwest Nassau submarket has seen the quickest growth, adding 283,000 square feet or 41.9% of total metropolitan office completions. Asking rents for office space on Long Island vary substantially, from $16.59 per square foot to $39.71 per square foot. The median asking price is $27.44 per square foot.

OFFICE SPACE- ASKING RENTS PER SQUARE FOOT*


$16.59 $23.23 $27.44 $27.48 $32.00 $39.71


OFFICE SPACE—VACANCY RATE DISTRIBUTION*


0.0% 3.7% 13.4% 10.4% 17.9% 68.2%


The vacancy rate for Long Island office space ranges from 0 percent to more than 68 percent. Nevertheless, with a median rate below 11 percent, Long Island has among the 20 lowest vacancy rates for office space among metropolitan areas nationally.


FLEX / R&D SPACE – ASKING RENTS PER SQUARE FOOT*

Low 25th Percentile Median 75th Percentile High

$5.42 $8.09 $10.10 $13.34 $21.57


FLEX / R&D SPACE – VACANCY RATE DISTRIBUTION*

Low 25th Percentile Median 75th Percentile High

0.0% 0.0% 1.1% 22.7% 69.0%


FLEX / R&D SPACE**

During the past twelve months, asking rents have risen a total of 1.7 percent. Since 2010, the market as a whole has recorded an annual average increase of 1.0 percent. But asking rents for Flex/R&D space on Long Island vary almost four-fold, from $5.42 to $21.57 per square foot, with a median asking rent of $10.10 per square foot.

Vacancy rates for Flex/R&D space vary widely, from 0.0% to 69.0. But the median vacancy rate is just 1.1 percent.

** Flex/R&D space is defined as an industrial building with a minimum total office percentage of 25% and consisting of either warehouse/distribution and/or specialty industrial space, such as research and development and high-tech space.


Long Island office space is fairly old with less than 10 percent of inventory having been built since 1999. Almost half of Long Island’s office space was built from 1980-1989.

OFFICE SPACE – INVENTORY BY BUILDING AGE*

Percentage of Year Built Total Office Inventory

Before 1970 17%1970-1979 20%1980-1989 47%1990-1999 8%2000-2009 8%After 2009 1%

*As of August, 2018. Source: Reis Reports: www.reisreports.com.

CONSUMER SECTOR

RETAIL SPACE

The Long Island retail market is comprised of 24.1 million square feet in six geographic concentrations ranging in size from the 7.8 million square foot Brookhaven/East Suffolk submarket to the 1.9 million square foot North Hempstead submarket. In the past 10 years, the Brookhaven/East Suffolk submarket has experienced the greatest introduction of new inventory– 316,000 square feet. This amounts to 56.3 percent of all new stock added to the market. Among smaller neighborhood shopping centers, asking rents for retail space vary from $16.31 to $54.89 per square foot for non-anchor stores, and from $13.27 to $39.27 per square foot in anchor stores. Mean asking rents for stores located in large community shopping centers are slightly lower than is the case for neighborhood shopping centers.

RETAIL SPACE – ASKING RENTS PER SQUARE FOOT*

Store Type Low 25th Percentile Mean Median 75th Percentile High

Neighborhood Non-Anchor $16.31 $25.00 $30.50 $31.03 $37.54 $54.89 Anchor $13.27 $18.83 $22.24 $21.60 $24.87 $39.27Community Non-Anchor $15.21 $27.23 $27.78 $31.22 $36.94 $46.60 Anchor $12.51 $17.50 $21.73 $20.43 $27.51 $46.43*As of August 2018; Source: Reis Reports: https://www.reisreports.com

Shopping Center Type


RETAIL SPACE – VACANCY RATE DISTRIBUTION*

Shopping Center Type Low 25th Percentile Mean Median 75th Percentile High

Neighborhood 0.0% 0.0% 6.8% 3.7% 10.1% 46.0%Community 0.0% 0.3% 7.4% 3.3% 6.4% 54.0%

*As of July 1, 2018; Source: Reis Reports: https://www.reisreports.com

Consumer spending accounts for more than two-thirds of economic output. Sales tax revenues provide an indicator for consumer spending patterns. Sales tax revenues rose by 3.2 percent in 2017, more than twice the rate in the prior two years.

SALES TAXES ACCRUING TO NASSAU AND SUFFOLK COUNTY GOVERNMENTS

Year Nassau County % change Suffolk County % change Total % Change

2002 $870,232,146 4.8 $897,817,642 14.0 $1,768,049,788 9.32003 $892,446,063 2.6 $984,842,033 9.7 $1,877,288,096 6.22004 $934,445,434 4.7 $1,075,858,735 9.2 $2,010,304,169 7.12005 $954,285,387 2.1 $1,119,771,842 4.1 $2,074,057,229 3.22006 $997,705,692 4.6 $1,137,434,100 1.6 $2,135,139,792 2.92007 $1,007,983,361 1.0 $1,174,646,855 3.3 $2,182,630,216 2.22008 $1,005,753,976 -0.2 $1,166,194,910 -0.7 $2,171,948,886 -0.52009 $949,534,876 -5.6 $1,069,012,710 -8.3 $2,018,547,586 -7.12010 $1,008,374,664 6.2 $1,130,885,872 5.8 $2,139,260,536 6.02011 $1,026,832,076 1.8 $1,163,795,162 2.9 $2,190,627,238 2.42012 $1,066,185,835 3.8 $1,199,201,869 3.0 $2,265,387,704 3.42013 $1,138,834,701 6.8 $1,281,871,707 6.9 $2,420,706,408 6.92014 $1,099,163,684 -3.5 $1,299,325,125 1.4 $2,398,488,809 -0.12015 $1,114,100,643 1.4 $1,316,669,212 1.3 $2,430,769,855 1.32016 $1,126,585,610 1.1 $1,332,948,651 1.2 $2,459,534,260 1.22017 $1,157,994,485 2.8 $1,380,781,587 3.6 $2,538,776,072 3.2

Source: New York State Department of Taxation and Finance. www.tax.ny.gov


Vacancy rates for retail space on Long Island are among the 20 lowest in the nation and the 2nd lowest in the Northeast Census Region. The median vacancy rate is just 3.7 percent for neighborhood shopping centers, and 3.3 percent for the larger community shopping centers.

GOVERNMENT EMPLOYMENTGovernment employment grew modestly on Long Island during the past year, with most jobs being added in local government education.

CURRENT GOVERNMENT EMPLOYMENTData for Nassau-Suffolk NY Metropolitan Division(Data are not seasonally adjusted. Data are preliminary and subject to revision.)

Industry July 2018 July 2017 Net Change Percent Change

Government 188,800 188,200 600 0.32%Federal Government 15,800 16,500 -700 -4.43%State Government 25,100 24,800 300 1.20%State Government – Education 12,800 12,000 800 6.25%State Government – Hospitals 1,400 1,400 0 0.00%Local Government 147,900 146,900 1,000 0.68%Local Government – Education 87,800 86,800 1,000 1.14%Local Government – Hospitals 2,700 2,700 0 0.00%


LONG ISLAND’S PUBLIC SECTOR


REVENUE SOURCES — NASSAU AND SUFFOLK COUNTIES, 2015

Subject Nassau Percent of Total Suffolk Percent of Total

Total Revenue and Proceeds of Debt 4,033,418,000 100.00% 3,246,233,802 100.00%Charges for Services 239,106,000 5.93% 267,831,408 8.25%Charges to other Governments 1,670,000 0.04% 18,574,583 0.57%Federal Aid 403,555,000 10.01% 286,681,604 8.83%Other Local Revenues 293,436,000 7.28% 88,168,063 2.72%Other Non-Property Tax 16,033,000 0.40% 11,530,740 0.36%Other Real Property Tax Items 74,321,000 1.84% 54,006,235 1.66%Proceeds of Debt 533,145,000 13.22% 202,752,939 6.25%Real Property Taxes and Assessment 936,626,000 23.22% 622,580,620 19.18%Sales and Use Tax 1,145,555,000 28.40% 1,334,809,368 41.12%Use and Sale of Property 119,816,000 2.97% 42,524,220 1.31%

Source: New York State Comptroller: www.osc.state.ny.us

COUNTY GOVERNMENT

Sales taxes are the most important source of revenues for both Nassau and Suffolk Counties. Sales taxes accounted for 28.40 percent of revenues in Nassau County and 41.12 percent in Suffolk. Property taxes comprised the second most important revenue source, accounting for 23.22 percent of revenues in Nassau County and 19.18 percent in Suffolk.


By many measures, Long Island’s economy has performed well. The unemployment rate has been at or near multi-year lows and the number of persons employed is at record highs. Labor force participation is high as well, indicating that people are reentering the labor market in anticipation of finding jobs. Reflecting the strong jobs market, consumer optimism and spending have been solid as well.

The manufacturing and service sectors have also been strong over the past year. Small business remains the backbone of Long Island’s economy, accounting for almost 90 percent of business establishments on Long Island. Small business views the current climate as favorable for making continued investment and further expansion. Given the tight labor market, however, matching the right workers to jobs has become more challenging.

Other successes include the renovation of the Nassau Coliseum and approval of the LIRR Third Track initiative. These are important milestones that will enhance economic growth for years to come. They will also help to attract and retain workers who appreciate better transportation and more entertainment opportunities.

But not all segments of Long Island’s economy have fared so well. The real estate sector in particular has performed unevenly. While home sales prices have increased, sales and inventories have stagnated. Low inventories limit choices to potential buyers which could serve to weaken demand. And changes in the tax laws that reduce mortgage interest rate deductions and limit property tax deductions in effect raise the cost of owning a home, posing a further threat to demand.

Recent tariffs imposed by the U.S. on trading partners like Canada and China have raised concerns about a trade war as these countries and others retaliate with their own tariffs. Exports are a significant com-ponent of Long Island’s economy and such tariffs could serve to reduce exports. However, the diversity of Long Island’s economy serves as a buffer against weakness in any one sector.

The real economy on Long Island is strong and has been so for quite some time. But uncertainty regarding the effects of tax changes and potentially escalating tariffs pose threats to consumer spending, business activity and the stock market. The expectation is that the economy will continue to expand but there is fairly wide variation around this expectation, due to mounting uncertainty.

LONG ISLAND’S ECONOMIC OUTLOOKBY DR. JOHN A. RIZZO LIA Chief Economist


Empire State Development150 Motor ParkwayHauppauge, New York 11788Phone: (631) 435-0717Fax: (631) 435-3399

Suffolk County IDAH. Lee Dennison Building 100 Veterans Highway, 3rd FloorPO Box 6100Hauppauge, NY 11788Phone: (631) 853-4802Fax: (631) 853-8351

Nassau County IDATheodore Roosevelt Executive& Legislative Building1 West Street, 4th FloorMineola, NY 11501Phone: (516) 571-1945Fax: (516) 571-1076

The Town of Brookhaven IDAOne Independence HillFarmingville, New York 11738Phone: (631) 451-6563Fax: (631) 451-6925

The Town of Babylon IDA47 West Main Street, Suite 3Babylon, NY 11702Phone: (631) 587-3679

The Town of Islip IDA40 Nassau Avenue Islip, NY, 11751Phone: (631) 224-5512Fax: (631) 224-5532

The Town of Riverhead IDA542 East Main Street, Suite 1Riverhead, NY 11901Phone: (631) 369-5129Fax: (631) 369-6925

The City of Glen Cove CDA/IDACity Hall9 Glen StreetGlen Cove, New York 11542Phone: (516) 676-1625Fax: (516) 759-8389

The Town of Hempstead IDA350 Front StreetRoom 234-AHempstead, NY 11550Phone: (516) 812-3134

Accelerate Long Island300 Broadhollow RoadSuite 110WMelville, NY 11747-4840Phone: (631) 493-3024

U.S. Department of Commerce1401 Constitution Avenue, NWWashington, D.C. 20230Phone: (202) 482-2000

U.S. Small Business Administration409 3rd Street, SWWashington, D.C. 20230SBA Answer Desk: (800) 827-5722

New York Power Authority123 Main StreetMail Stop 10-BWhite Plains, NY 10601-3170Phone: (914) 681-6200

PSEG Long Island333 Earle Ovington BoulevardSuite 403Uniondale, NY 11553Business Customers:Phone: (631) 755-3417

NYSERDANew York State Energy Researchand Development Authority17 Columbia CircleAlbany, New York 12203-6399Phone: (518) 862-1090

Suffolk County WorkforceInvestment BoardP.O. Box 6100Hauppauge, NY 11788Phone: (631) 853-6958

Suffolk County EconomicDevelopmentH. Lee Dennison Building100 Veterans Highway11th FloorHauppauge, NY 11788Phone: (631) 853-4800

Suffolk County Department of LaborWilliam J. Lindsay County Complex725 Veterans Memorial HighwayHauppauge, NY 11788Phone: (631) 853-6600

Nassau County Officeof Economic DevelopmentAdministration1550 Franklin AvenueMineola, NY 11501Phone: (516) 571-1938

Oyster Bay-North Hempstead-Glen Cove Workforce Investment BoardThe Hicksville Career Center301 West Old Country RoadHicksville, NY 11801Phone: (516) 934-8532

ECONOMIC DEVELOPMENT RESOURCES




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THE LONG ISLAND ASSOCIATION BUSINESS FACT …...Resource Guide Prepared By DR. JOHN A. RIZZO LIA Chief Economist 2 | LIA BUSINESS FACT BOOK, FALL 2018 THE LONG ISLAND ASSOCIATION BUSINESS