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Suburb Relocations Halt Until NYC Gels

TARRYTOWN, NY-Area commercial broker Scott Benson charges that major relocation deals will likely be on hold in the suburban markets of Westchester and Fairfield until New York City begins to absorb its existing available space.

By John Jordan | Updated on October 09, 2002

TARRYTOWN, NY-Until New York City’s office market begins to stabilize, the suburban markets of Westchester and Fairfield counties can expect little or no major relocation deals from New York City firms, according to area broker Scott Benson, president of Benson Commercial Realty, Inc.

Benson says that there are currently about 100 New York City office leaseholders occupying space of 100,000 sf or more whose deals are approaching renewal or are set to expire in the near term. He adds that other factors such as limited leasing activity, combined with the more than 45 million sf of direct and sublease space that is now available in Manhattan, have contributed to average asking rents falling by more than $11 per sf in the city.

“These are just some of the reasons the suburban market should anticipate limited, large-block, New York City relocations, for quite some time,” he says. “This conclusion is best proven by the lackluster absorption of large blocks of space in excess of 50,000 sf during the last number of months in both Westchester and Fairfield counties.” Benson also notes that tenants in New York City may decide to stay in the city because they can now get better deals from Manhattan property owners.

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