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Westchester Market Showing Early Signs of Recovery

STAMFORD, CT-Increased tenant demand and the recent sale of the Chevron/Texaco building helped bolster the Westchester County office market in the first quarter leading some to say that the county is in the early stages of a recovery.

By John Jordan | Updated on April 22, 2002

STAMFORD, CT-After about a year of experiencing modest tenant demand and increased office availability due to the economic downturn, the Westchester County market is beginning to show some indications of a turnaround, according to Insignia/ESG officials.

The brokerage firm in its first quarter 2002 office market report for Westchester County states that the region’s office availability rates have improved, due at least in some part to Morgan Stanley’s recent purchase of the Chevron/Texaco headquarters in Harrison. Westchester’s leasing velocity in the first quarter of 2002 rose 95 percent from the first three months of 2001 to one million sf, Insignia officials note. That, combined with a slowdown of either direct or sublease space coming back on the market, led to positive absorption for the first time in more than a year–almost 519,130 sf of positive absorption, compared to 608,290 sf of negative absorption at the end of the same period last year. In the fourth quarter of 2001, the market recorded a negative absorption of 795,860 sf of office space.

Westchester County’s office availability rate, while rising almost two percentage points from the first quarter of last year, decreased more than a point and a half from three months ago to 15.1 percent. The countywide average asking rent fell 39 cents per sf from last year to $25.66 per sf.

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