Organic products company ditches Nassau County HQ in downsizing
Hain Celestial ditches 86K sf, tax break at Waterstone Properties Group building
Organic products company Hain Celestial is leaving its Nassau County headquarters, forsaking a lucrative tax break as it reassess its need for office space.
The company’s last day at 1111 Marcus Avenue in Lake Success was Friday, Newsday reported. Hain occupied 86,000 square feet at the Class B office building, located off the Northern State Parkway.
“With the shift to remote work over the past three years, our current space was too large and we decided to explore a HQ space that is right-sized for our needs,” the company told Newsday in a statement.
It’s a big loss for landlord Waterstone Properties Group, which owns the space that Hain has occupied for the past decade. Other tenants at the complex, a commercial condominium with different owners, include Northwell Health and LA Fitness.
One of the largest publicly traded companies based on Long Island, Hain has brands including Terra Chips and Celestial Seasonings herbal teas.
The company has received more than $2 million in tax breaks from the county since 2012 as part of a deal that required it to remain in the building until 2029.
It’s possible Hain will have to pay back the benefits, although Richard Kessel, chairman of the Nassau County Industrial Development Agency, suggested to Newsday that a deal could be worked out to keep the company in the county.
It’s not clear how many employees worked out of the Lake Success office, but the figure was likely dwindling. Hain had 302 staffers there at the end of 2019, according to the Authorities Budget Office, a state regulator. Two years later, that number had dropped to 239.
Hain’s share price has plummeted nearly 50 percent in the past year amid declining revenue and profit. The company spent a year trying to sublease the space before packing up and leaving, according to a leasing agent who represents Waterstone.
Office downsizings have become frequent in the wake of the pandemic, as workers do not feel inclined to come in every day and tenants are reluctant to pay for space that is underutilized.
— Holden Walter-Warner