Small office supply is limited.

The thriving economy in Westchester has bolstered business for small- to medium-sized entities, fostering the_growth and expansion of start-up, family-owned and other moderately-sized companies, particularly within the high-tech and services arenas. As a result, the demand for office and industrial space to accommodate these businesses has squeezed the Westchester County real estate market, where blocks of space ranging from 5,000 square feet to 30,000 square feet are a rare find.

According to Research Consulting Services of Cushman & Wakefield of Connecticut, Inc., 74 percent of the office square-footage leased in Westchester falls within this range, and 98 percent of the number of transactions that closed in the county last year involved space requirements measuring 30,000 square feet or less.

For example, the property formerly owned by Sandbank Films Company, a 17,000 square-foot building which featured 5,000 square feet of warehouse space at 40 Old Saw Mill River Road in Hawthorne, NY, sold for $1.4 million to Genelinx, a small genetic research firm. According to Daniel Mambrino of Cushman & Wakefield's Stamford office, who acted as the property's exclusive agent, "This property sold very quickly because it was just the right amount of space for a firm this size, while it offered flexibility and the option to add another floor in the future."

"The property was a very rare find in Westchester," added Michael Resch, who shared the assignment with Mambrino.

In another example, the former Turtle Wax building at 335 North Main Street in Port Chester, NY, a 25,400 square-foot, mixed-use property situated on one acre of land, sold for $1.6 million earlier this year to Shroid Construction, after 10 potential buyers competed aggressively for the property. According to Mambrino, who acted as the exclusive agent for the Port Chester property, "Shroid Construction appreciated the building's excellent location, proximity to the Queens and Bronx markets, and the option to expand by adding another 5,000 square feet of space."

"One of the ways business owners are dealing with the dramatic shortage of smaller commercial and industrial spaces in Westchester County is by being flexible and considering options they might not otherwise have considered," explained Resch.

For example, Dennis Noskin, a commercial architect in Valhalla, NY, has an interesting perspective on the market conditions for office and industrial space within the 5,000 to 30,000 square-foot range. As an architect, Noskin has strong ties to the commercial real estate brokerage community, but as the owner of a thriving practice, he also struggled to find a property that would suit his growing needs for studio space.

"Even with all my connections in the real estate world, I still had trouble finding office space that would meet my growing requirements," he said. After an intensive eight-month search, Noskin purchased a unique, 5,000 square-foot space - two churches built in 1911 that were joined at the center, located near the Valhalla train station. "We had to keep an open mind about possible sites," Noskin said. "We looked at more than 15 properties, most of which were either too large or required far too much money to improve to suit our needs."

In another example, when Myles Ridder, owner of an educational publishing business, began looking within the Westchester real estate market, he eventually purchased a property that he was already renting. "Ridder purchased 210 North Avenue, an 8,600 square-foot office and industrial building in New Rochelle, from which to run his growing business. After an exhaustive search for new office space, Ridder found it more beneficial and cost-efficient to upgrade his existing location," noted Resch.

"We are seeing that many small business owners would rather own than lease a property because of financial, as well as practical considerations. It's not easy to make improvements to a leased space and have those move with you to the next property," said Mambrino. "By the same token, properties within this range are better suited for the end-user buyer because there is typically not enough rent-able space to make the investment worthwhile to a small real estate investor."

Deals are getting done in record time, the brokers said. The pressures of growing businesses demand that their owners make real estate decisions quickly, so that they can stay focused on their primary business functions. "There is a great deal of competition out there for this type of space in Westchester. If a business owner waits too long, he or she may lose the opportunity to bid on a property all together," said Mambrino.

Interestingly, many larger, former corporate headquarters properties in Westchester are planned for or are currently undergoing renovations to accommodate the still-growing space needs of smaller users.

For example, 333 Westchester Avenue, the 600,000 square-foot building in White Plains, is currently undergoing renovation to this end and will divide to 2,500 square feet.

In another example, W&M Properties recently purchased 500 Mamaroneck Avenue in Harrison and is planning a $12 million renovation to reposition the property for smaller tenants."