Corporate consolidations hamper Westchester recovery.Despite a year of steady leasing activity major corporate consolidations hampered a recovery for the Westchester County office market in 1993.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Rostenberg-Doern Corporate Real Estate Report released this month, Westchester's vacancy rate for 1993 was 26.9 percent, about four points higher than 1992. Absorption for 1993 was a negative 1.25 million square feet, more than double the negative absorption reported in 14992.
"The corporate consolidations that began in our region in the late 1980s are continuing to have a major impact on the county's corporate office market. IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , AT&T, TWA TWA Time-weighted average, see there AND NYNEX NYNEX New York-New England & X for the Unknown (Telephone Company)
NYNEX New York Network Exchange have dramatically reduced their presence in the market," said John H. Rostenberg, principal of Rostenberg-Doern Company, Inc.
However, leasing activity in Westchester is steady, with approximately 1.5 million square feet of space leased in 1993. Among the major leases in Westchester County in 1993 were Transamerica's lease of 125,000 square feet at the former Nestle headquarters in Purchase; Research Institute of America's lease of 52,248 square feet in Valhalla; and Dannon's relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation.
2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. from White Plains to 37,000 square feet in Tarrytown.
The eastern half of the county, which includes the I-287 corridor, is showing signs of a recovery. In the second half of 1993, more than 325,000 square feet of space was absorbed in this market. Most of the gain has come from medium-sized lease transactions of 10,000 to 20,000 square feet.
Despite the problems currently facing Westchester County's office market, there are signs of strength in the market.
Westchester County's large institutional property owners, - The Principal Financial Group, Prudential, CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) and General Motors Pension Fund - have held onto their Westchester properties despite the downturn in the market, and some have made major investments in upgrading their properties.
Other sectors of Westchester's economy are thriving as well. Housing construction is on the rebound and retail construction is active, especially in downtown White Plains.
"All of these signs point to a steady, albeit slow recovery in Westchester County's economy. For the Westchester office market, which remains vulnerable to corporate downsizings, the recovery will take a little longer," Rostenberg said.
Rostenberg said Westchester County could greatly benefit from the same type of economic development program launched by the State of Connecticut in 1993.
Fairfield County Fairfield County is the name of three counties in the United States:
adv. & adj.
Throughout a whole county: found at locations countywide; a countywide search.
Adj. 1. and the vacancy rate fell to 22.6 percent.
"Westchester County's business and political leaders have taken serious steps to promote economic development, the most recent being the successful effort to keep Transamerica in the county and the efforts under way to retain Ciba. However, the county can't do it alone. The state, because of its resources, must be the driving force and part of the process, Rostenberg said.
The survey of Westchester County's five market areas showed:
Westchester Central Business District: Downtown White Plains ended the year with a record high vacancy rate of 35 percent, up from 28.9 percent in 1992, and a negative absorption of more than 393,000 square feet. Significant consolidations by IBM at the Westchester One office tower accounted for most of the negative absorption. Cutbacks by AT&T and NYNEX have also hurt the downtown office market. Leasing activity by smaller companies remains steady but is not enough to offset cutbacks by major companies. MAJOR DEALS: Advest, Cerussi & Spring, Ernst & Young, First Fidelity, ISSC ISSC International Ship Security Certificate
ISSC Interstate Shellfish Sanitation Conference
ISSC International Social Sciences Council
ISSC Integrated Systems Solutions Corporation
ISSC Information Systems Steering Committee
ISSC Information Systems Sub-Committee , Reane & Bean, New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Life Insurance, and Waterhouse Securities.
Westchester East: Strong leasing activity in the second half of the year helped reduce earlier losses in the Harrison-Purchase-Rye office market. The vacancy rate rose from 22.9 percent in 1992 to 26.1 percent, while absorption for the year was a negative 322,915 square feet. The Transamerica lease for 125,000 square feet in Purchase was the largest deal of the year in Westchester. Activity has been particularly strong among small to mid-sized companies. More than 50,000 square feet of leases were signed at the various properties owned by The Principal Financial Group. However, IBM's decision to relocate re·lo·cate
v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates
To move to or establish in a new place: relocated the business.
v.intr. from its Purchase office facility added 472,000 square feet of space to this market's inventory. MAJOR DEALS: Apple Computer, A&W Brands, Entex, Frustum Group, General Foods Federal Credit, Magi Educational, Market Data, MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device.
(2) (Microwave Communications Inc. , Melville, Miller & Miller, Moskowitz-Jacobs Inc., Prodigy An online information service that provides access to the Internet, e-mail and a variety of databases. Launched in 1988, Prodigy was the first consumer-oriented online service in the U.S. , Prudential, Reuben Donnelly and Transamerica.
Westchester West: This market, which is primarily the Route 119 corridor in Tarrytown, finished the year with a vacancy rate of 24.2 percent, up nearly 8 points from 1992. Absorption which totaled 60,000 square feet in 1992, was a negative 256,784 square feet for 1993. As in downtown White Plains, this market is being adversely affected by IBM consolidations, which have put approximately 280,000 square feet of space back on the market.
Westchester North: The announced relocation of TWA's headquarters from Mount Kisco to St. Louis was a setback for the country's northern office market in 1993. The vacancy rate rose from 21.6 percent in 1992 to 26.1 percent. Absorption, which last year totaled more than 150,000 square feet, was a negative 202,395 square feet for 1993. Other companies vacating space in this market in 1993 included Barclay's, AT&T and Allstate. On the positive side, Research Institute of America leased approximately 52,000 square feet in Valhalla. MAJOR DEALS: Research Institute of America and Emigrant Savings Bank Emigrant Savings Bank was founded in 1850 by 18 members of the Irish Emigrant Society and is the oldest savings bank in New York City. The bank was originally founded to serve the needs of the immigrant community in New York and has grown to be the largest privately owned bank in .
Westchester South: The Yonkers Mount Vernon-New Rochelle market showed a slight rise in its vacancy rate for the year from 15.9 percent in 1992, and absorption was a negative 75,443 square feet. UNICEF's decision not to relocate its headquarters to New Rochelle New Rochelle (rōshĕl`), city (1990 pop. 67,625), Westchester co., SE N.Y., on Long Island Sound; settled by Huguenots 1688, inc. as a village 1858, as a city 1899. was a disappointment for this market in 1993.