Coyle adds that the recent decision by Marsh & McLennan Companies to lease 84,000 sf of space at 601 Merritt 7 will help fill some of the speculative space coming on the market.

She predicted that businesses will continue to put some space back on the market for sublease, but "at a less aggressive pace than the preceding year."

Coyle adds, "Tenants that recognize that the economy is about to round the bottom of the cycle will try to secure space at rates that have not been more favorable in more than a year. Additionally, smaller New York businesses that have been investigating the county for alternatives will begin to secure space, particularly in Greenwich and Stamford."

She notes that Westchester should also see some activity from mid-size New York City firms seeking to take advantage of lower operating costs.

Downtown White Plains had until recently been showing significant growth and had cut office availability rates to the mid to low teens from highs of more than 30 percent in the late 1990s. Some of that growth came from deals with new technology firms.

Coyle relates, that today many of those businesses are now struggling to stabilize their operations or have since shut their doors entirely.

"Contractions will continue to inflate availability, and rents in the (White Plains) CBD will soften another three percent to five percent before leasing activity strengthens and buildings regain their occupancy levels," Coyle relates.

Grubb & Ellis reports that at the end of the first quarter, asking rent for Class A space in downtown Stamford stood at $42.01 per sf, while the average asking rent for Class A space in downtown White Plains was $31.59 per sf.