Year after year, Rechler Equity Partners—the largest owner and operator of industrial space on Long Island—continues its position as a cornerstone of Long Island’s economy. Rechler Equity closed out 2021 with 688,000 square feet in newly signed lease agreements while also renewing 650,000 square feet of current leases, amounting to more than 1.3 million square feet of secured agreements in 2021 alone. Collectively, the Rechler Equity industrial portfolio of more than six million square feet currently maintains an occupancy rate of 99.13 percent.
“2021 was another strong year for our company and the industrial real estate market as a whole as the demand for quality space continues to outpace the available supply,” said Gregg Rechler, co-managing partner of Rechler Equity Partners. “The need for warehouse and distribution space is unlike anything we’ve experienced in our company’s 64-year history, which is why we are proud to be moving forward with over one million square feet in industrial projects that will address deficiencies in the market and allow the region’s economy to flourish.”
It is no secret that demand for industrial space is at an all-time high due to the region’s limited supply, which has led to historic rental rates. Rechler Equity has several projects under development to help add much needed, quality industrial facilities to the market. At the Hampton Business District, located at Gabreski Airport in Westhampton Beach, the park’s fourth building, which is 91,000 square feet, is nearing completion. The fifth building, which will be more than 100,000 square feet, has received all necessary approvals and has broken ground. The existing three buildings in the park, which total more than 195,000 square feet, are near 100 percent occupancy and are occupied by businesses of all sizes including, Tate’s Bakeshop, Westhampton Beach Brewery, ADS Management and Duggal Visual Solutions.
“The Hampton Business District is a shining example of the phrase ‘build it and they shall come,’” said Mitchell Rechler, co-managing partner of Rechler Equity Partners. “Each of these buildings was built on spec, because we knew if future tenants saw the space completed that it would sell itself; and that is exactly what happened. Now we have companies ranging in size from nationally known brands to local start-ups thriving in spaces that continue to foster growth and success.”
With the Hampton Business District in its final chapter of development, Rechler Equity has turned its sites to an industrial-zone property in Medford, where the Rechler Business Center will be created. The parcel along Horseblock Road will become a more than 840,000 square foot, state-of-the-art, multi-purpose industrial park. The multi-phased project will start with the construction of 10 Donald’s Way—a more than 138,000-square-foot building on 11 acres of the site—paying homage to the late real estate development innovator, Donald Rechler.
“The expansion of our portfolio will enable us to continue matching new and existing Long Island businesses with suitable spaces that address their current and future growth,” added Gregg Rechler. “As we’ve seen in years past, there is still a defined trend of businesses relocating from western portions of the region eastward. 2022 and beyond have a positive outlook for our company as the many projects we have in development will create new, needed spaces for businesses as well as homes for employees.”
Rechler Equity has been equally as active on the industrial real estate front as they have been on the residential side. The company’s luxury, multi-family Greybarn community is finding resounding success in the region as it provides the amenities and lifestyle varying generations of Long Islanders are seeking. The first Greybarn community, along the 110 Corridor in North Amityville, has 455 one- and two-bedroom apartments that currently boast a 97 percent occupancy rate. Additionally, the Greybarn brand will be expanded in 2022 as Rechler Equity will break ground on projects in the downtowns of Bay Shore and Patchogue, providing high-quality living options in these popular areas.
“Businesses need the space to grow, but they also need employees to enable their success and those people need places to live,” added Mitchell Rechler. “The region is so understocked with quality rental options and we’ve heard from numerous tenants that it is inhibiting their ability to attract and retain talent. Our concept for Greybarn was to provide Long Island’s unapologetic suburbanites with accommodations that fit their lifestyle and we’re ecstatic about the response to what has been created.”
