CIBS State of the Market panel points to positive outlook for Long Island commercial real estate

Melville, NY More than 150 commercial real estate professionals gathered for the Commercial Industrial Brokers Society of Long Island’s (CIBS) annual “State of the Market” panel, where industry leaders offered a largely positive outlook for Long Island commercial real estate heading into the end of 2026 and 2027.

The annual event, held at the RXR Building, brought together professionals from across the commercial real estate industry to discuss activity and emerging trends in the office, industrial, retail and investment sales markets.

Panelists included Tom DeLuca of C&W Industrial; Stephen Cadorette of Cushman & Wakefield; Dennis Gandley of Douglas Elliman; and Clem Cote II of Sovereign Realty Group. The discussion was moderated by Peter Curry of Farrell Fritz, P.C.

“The State of the Market has become an important CIBS tradition because it gives our industry an opportunity to come together at the start of the fall and have a candid conversation about what we are seeing across the market,” said Ralph Benzakein, president of CIBS. “This year’s discussion reflected a real sense of optimism. There are certainly challenges, but we are seeing investment, new development, tenants making moves and opportunities emerging across a number of sectors. The turnout of more than 150 professionals demonstrates just how valuable these conversations are to our members and the broader commercial real estate community.”

Panelists pointed to several significant developments as evidence of continued confidence in Long Island, including the Melville Town Center initiative, continued activity at Station Yards in Ronkonkoma and NYU Langone’s planned hospital project in Melville.

In discussing the office market, Cadorette pointed to signs of increased activity, including new leases being signed and tenants making decisions about their space as companies continue to navigate return-to-office strategies. He noted that the repurposing of some existing office properties is helping tighten available inventory, while location and amenities remain important considerations for tenants. The market is also beginning to see modest increases in rents.

DeLuca expressed optimism about the industrial market, pointing to the potential for a strong finish to 2026 and continued momentum into 2027.

Gandley described Long Island’s retail market as particularly active, with limited new retail-only development contributing to constrained supply. While traditional malls continue to evolve and, in some cases, undergo significant redevelopment, open-air concepts and smaller shopping centers are attracting increased interest.

Service-oriented businesses, including medical and dental practices, as well as restaurants and other food-service operators, are increasingly playing a role in the retail mix. The panel also discussed how emerging technologies could eventually create new opportunities for retail properties, including the potential use of rooftops and parking areas to support drone delivery infrastructure.

Cote provided perspective on the investment sales market and the factors influencing owners, investors and transactions across Long Island.

“The value of this discussion is that we are hearing directly from professionals who are working in these markets every day,” said Curry. “When you look across the different sectors, there are encouraging signs of movement and investment. At the same time, every sector is evolving, whether it is the changing use of office space, the limited supply of industrial and retail properties or new types of tenants entering the market. Bringing these perspectives together gives us a much clearer picture of where Long Island commercial real estate stands and where it may be going.”

The event was sponsored by Fosbenner Financial, with Amy Fosbenner welcoming attendees and offering remarks prior to the panel discussion.