Westchester, Fairfield corridors may hit 10-year occupancy record.Downtown White Plains: $25 to $27 per square foot.
Greenwich: $35 to $40 per square foot.
Stamford: $28 to $34 per square foot.
These are not the asking prices; these are the effectuated rental rates before utility charges and parking fees.
In 1997, the two counties absorbed more than 7 to 10 percent of their respective excess Class A vacant office space. Today, if a broker were to represent a relocating New York City New York City: see New York, city.
New York City
City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. tenancy A situation that arises when one individual conveys real property to another individual by way of a lease. The relation of an individual to the land he or she holds that designates the extent of that person's estate in real property. requiring 60,000 to 100,000 square feet in a Class A property anywhere in the White Plains, Greenwich, or Stamford environs, the broker could not find more than 14 to 15 opportunities, including the sub-lease market.
It can be said that the two counties' vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled.
2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rate is in direct correlation Noun 1. direct correlation - a correlation in which large values of one variable are associated with large values of the other and small with small; the correlation coefficient is between 0 and +1
positive correlation to market conditions, however, the rental rates are not. We have recently witnessed and will continue to experience dramatically higher rental rates due primarily to acquisitions by our regions' REITs and large-block portfolio owners. Many recent acquisitions were made at an 8.5 to 10.5 cap rate, and it is imperative that these entities (i.e., First Equity, Mack-Cali and Reckson) provide a higher yield to their investors. With a large percentage of the two counties' "trophy properties" in the control of a few, we are likely to see a greater disparity dis·par·i·ty
n. pl. dis·par·i·ties
1. The condition or fact of being unequal, as in age, rank, or degree; difference: "narrow the economic disparities among regions and industries" between Class A and B product in the coming year, which I anticipate to be as much as $6 to $10 per square foot.
The greatest short-term beneficiaries of the Class A office markets escalating rental rates and occupancy levels will be felt by the tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. markets of Hawthorne, Armonk, Mount Kisco, 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. , Yonkers, Norwalk, Bridgeport and others, who had been hit hard over the last five to 10 years. For example, it was not more than 12 years ago that Armonk was effectuating $20 plus rental rates. In the last five years, deals were effectuated as low as $14.50 per square foot. This will change quickly.
A renewing tenant who may have entered the Class A office market from the aforementioned a·fore·men·tioned
The one or ones mentioned previously.
Adj. 1. tertiary markets in the last five to seven years, either in a direct or sub-lease transaction, is probably in for a fair market value "sticker shock Sticker shock is a United States term for the feeling of surprise experienced by consumers upon finding unexpectedly high prices on the price tags (stickers) of products they are considering purchasing. ." Portfolio owners such as First Equity, W&M Properties, Mack-Cali, Reckson, Cappelli, Principal and EastRidge, who were all forced to capitalize transactions at levels that had little economic viability just to keep their buildings tenanted, are now going to "eat their cake." There aren't the options of moving next door for a cheaper deal or taking advantage of a heavily-discounted long-term sub-lease, and the owners realize it.
This overall resurgence re·sur·gence
1. A continuing after interruption; a renewal.
2. A restoration to use, acceptance, activity, or vigor; a revival. has also been witnessed in our industrial and flex properties. Over a year ago, we tracked over 15 mainstream distribution/R&D/flex properties that could accommodate requirements in excess of 50,000 to 75,000 square feet, either for lease or sale. Today, with the exception of build-to-suit situations, there exist only three. This is well-evidenced by many of the local REITs taking a hard look at any industrial or flex properties that may come to market or may be available as a sale lease-back situation or possible acquisition candidate.
Other key market sectors which will likely continue to increase both Westchester and Fairfield future real estate values are alternative land users, such as big box retailers, congregate con·gre·gate
tr. & intr.v. con·gre·gat·ed, con·gre·gat·ing, con·gre·gates
To bring or come together in a group, crowd, or assembly. See Synonyms at gather.
1. Gathered; assembled.
2. cares or assisted-living operators, extended stay hoteliers, and various entertainment-related operators. These users can afford to pay higher floor area ratio (FAR) prices for vacant land or redevelopment opportunities than the conventional office or flex developer due to the greater return on their development dollars.
In conclusion, 1998 will be a year of continued growth and absorption, and we will likely see the redevelopment of presently vacant buildings and complexes that will provide new opportunities for either the relocating metropolitan or locally-expanding company.