One of the more interesting exchanges during the session held at the Crowne Plaza Hotel in White Plains was concerning whether Westchester County will see a number of New York City relocations this year because of the county's significantly lower office rental costs. Michael Siegel, executive director of Insignia/ESG, said he felt that the Jersey City market has proved to be a very successful extension of the New York City office market.

“Westchester County is not an extension of New York City. It is viewed as a major relocation for any company who is considering a relocation,” commented Siegel. He noted that while he is hopeful that some New York City corporate relocations would take place this year, he admitted that he is unsure whether any will take place.

Frank Tomasulo, senior vice president of CB Richard Ellis, said that the relocations of companies such as Starwood Hotels and Resorts and the Leukemia Society to Westchester are tangible evidence that the county is a viable corporate location. He noted that the county has available large blocks of space where tight markets such as New York City and Fairfield County have few if any options for large space users.

Tomasulo said that the county currently has seven blocks of space of 100,000 sf or more that are available. “Those availabilities are going to bring people looking,” he charged.

Campofranco had a different spin on the issue of corporate relocations. He said that many New York City companies find it difficult to move to Westchester because of the tight labor markets in the area. He said companies are fearful that a move to Westchester would cause a loss of key personnel–workers they cannot replace.

He also pointed out that former submarkets in Manhattan are now becoming popular with some firms who are finding Downtown New York City rents too steep. While he was skeptical about relocations to Westchester from New York City, Campofranco said that tight market conditions and traffic jams on I-95 and the Merritt Parkway may convince some Connecticut companies to consider moving to Westchester.

“I feel more bullish on Fairfield,” he said. “I think Fairfield is very tight. Stamford is too tight and the capital is constraining that market and traffic is constraining to that market.” Campofranco revealed this his firm is seeing a lot of activity by firms seeking to cross over the border from Fairfield County to Westchester.

The other panelists at the session were Michael Grossman, executive vice president, Mack-Cali Realty, Russell Warren of Ivy Equities and Howard Greenberg, a principal of Howard Properties.