He continues, "There's a significant difference between today's market and those of the past. Westchester is far more healthy and resilient than it was during the 1990s. Specifically, its diversity reduced our exposure to the fortunes of a few large space users."
According to the Insignia/ESG First Quarter Commercial Market Report, leasing velocity for the first three months of the year totaled 537,830 sf, a decline of more than 24% from the same period a year ago, while net absorption for the quarter totaled negative 608,290 sf, a significant reversal from 310,140 sf of positive absorption in 2001. The countywide availability rate rose from 11.6% at year-end 2000 to 13.2% at the end of the first quarter 2001.
Insignia/ESG officials say that the White Plains Central Business District, more than any other submarket in the county, felt the effects of recent economic events. The first quarter 2001 availability rate in downtown White Plains shot up to 17.3%.
Countywide, corporate downsizings took their toll. Companies like I-click, Monster.com, Entex, Lucent Technologies and Advanced Network, among others, vacated space in 2001. The return of large amounts of space by Pepsi's downsizing in Somers (160,000 sf) and International Paper's headquarters relocation to Stamford from Purchase (78,560 sf) also put upward pressure on availability rates in the first three months of 2001.
However, with the exception of the fallout from the pending Chevron-Texaco merger that could put a large amount of space at Texaco headquarters on the market, Insignia/ESG officials say they don't expect any more significant office downsizing programs to impact the market this year.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
