Report: large returns in east have limited impact on positive momentum in W'chester

Real Estate Weekly,  Oct 17, 2007  

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Nearly 1.7 million square feet was leased in Westchester in the first three quarters of 2007, with a handful of large transactions coming out of New York City, including Disney Publishing, according to CB Richard Ellis' 3rd Quarter 2007 Office Market Report.

Although, the availability rate rose to 15.71%, slightly above last year's 14.75%, Westchester County displayed a solid third quarter, with year-to-date leasing remaining consistent with previous years' activity.

Total negative net absorption YTD was minimal at 26,000 s/f, despite several large blocks of space returned to the market, particularly in the East. Despite this, there is still a healthy appetite for high-quality space in the Westchester County market.

The average rental rate grew steadily in Westchester County, having increased 10.3% to $28.78 per square foot from the same time last year. While the availability rate in White Plains CBD remained at a low 12.08% in the third quarter of 2007.

"The shortage of space and high rents in Manhattan should continue to benefit Westchester County," said Robert Caruso, senior managing director of CB Richard Ellis' Westchester/Fairfield operations.

"White Plains in particular is becoming more and more attractive to New York City based companies, with its close proximity, cheaper rents and easily accessible transportation center."

The largest leases in the county included: Weekly Readers 80,000 s/f at 480 Bedford Road in Chappaqua, The Bank of New York's 78,000 s/f at 440 Mamaroneck Avenue and Fordham University's 62,500 s/f at 400 Westchester Avenue in Harrison.

COPYRIGHT 2007 Hagedorn Publication
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