More office space vacated than leased in Westchester.
According to a quarterly survey released today by Rostenberg-Doern Company, Inc., there was more space vacated than leased in the county during the third quarter of this year, resulting in a negative absorption of 138,264 square-feet. TWA's announced relocation from Westchester accounted for 166,000 square-feet of new inventory. The countywide vacancy rate at the end of the third quarter was 27.6 percent, a slight increase from 27.1 percent at midyear.
There were three significant lease transactions to report in the county during the third quarter: Dannon's 37,000 square-foot lease in Tarrytown; a 15,000 square-foot lease by Mitsubishi in Rye; and Montefiore Medical Center's lease for 15,000 square-feet in Yonkers.
'The Westchester office market is experiencing strong leasing activity from many small to mid-sized businesses. Companies are looking to benefit from competitively priced rents at premium office locations," said William V. Cuddy, Jr., Senior Vice President and Principal of Rostenberg-- Doern Company. "With over 400,000 square-feet of leasing activity in the past three months there has been a discernable rebound in the market," Cuddy added.
The survey of Westchester County's five markets showed:
Downtown White Plains, which had been particularly hard hit by corporate consolidations by IBM and AT&T, reported its second consecutive quarter of positive absorption, with 17,667 square-feet of space absorbed in the third quarter. The city's vacancy rate is 34.6 percent, down slightly from 34.9 percent at midyear. MAJOR DEALS: Ernst & Young expansion (18,000), Keane & Bean (9,000) and Commonwealth Title (5,000).
Westchester East, a market that includes the I-287 corridor of Harrison, Rye, Rye Brook and Purchase, posted an absorption of about 22,000 square-feet of space. The vacancy rate in this market fell slightly to 29.4 percent. MAJOR DEALS: Mitsubishi (15,000), Miller & Miller (11,000) and Lanier Worldwide (7,000).
Westchester West, which is primarily the Route 119 corridor of Tarrytown, received further news from IBM during the quarter. An additional 108,000 square-feet of space was returned to the market by IBM. In addition, AIG returned 13,000 square-feet of space to the market. MAJOR DEALS: Dannon (37,000), Ramenstein (13,500) and Independent Health Associates (12,000).
Westchester North had. a negative absorption of 143,759 square-feet of space and a rise in vacancy rate from 22.8 percent at midyear to 26.3 percent at the end of the third quarter. TWA's move-out in Mount Kisco accounted for the bulk of the surplus space. MAJOR DEALS: Emigrant Savings Bank expansion (25,000).
Westchester South, a market that includes New Rochelle, Yonkers and Mount Vernon, saw little change during the past three months. About 10,000 square-feet of space was absorbed and the vacancy rate fell from 16.2 percent to 15.9 percent. MAJOR DEALS: Montefiore Medical Center (15,000) and Travelers (6,000).
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|Title Annotation:||Suburban Markets; Westchester County, New York|
|Publication:||Real Estate Weekly|
|Date:||Oct 20, 1993|
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