Westchester County Real Estate Market Reports

Westchester County Office Market

Following a brief rebound earlier in the year, leasing activity remained measured through both the third and fourth quarters. The fourth quarter, which typically delivers a seasonal pickup in deal volume, tracked largely in line with Q3, resulting in total 2025 leasing activity of just over 1.3 million SF. While this level was essentially on par with 2024, and among the lowest annual totals since 2020, it reflects a market adjusting to a more selective and supply-constrained environment rather than a deterioration in demand. As noted earlier in the year, the slowdown appears more consistent with a strategic pause as occupiers reassessed long-term space needs amid ongoing economic uncertainty. At the same time, continued redevelopments, conversions, and transitional assets awaiting sale and new ownership have effectively sidelined portions of inventory, particularly within higher-quality and transit-oriented assets, contributing to tighter conditions. With fewer viable options available, current leasing levels may represent a more sustainable equilibrium for the market, positioning well-located assets to benefit as decision-making clarity improves. Average asking rents continued to trend higher in 2025, driven in part by the removal of more than 400,000 SF of lower-tier space at the former “700 Series” complex. At the same time, demand remained increasingly selective, sustaining activity among the highest-quality assets and supporting rent growth for buildings offering stronger amenity profiles, most notably in Downtown White Plains, but increasingly within tightening submarkets such as the West I-287 corridor. As a result, the county’s direct average asking rent ended at $29.24/SF, up 2.8% year-over-year, while Class B rents climbed to $27.49/SF, reflecting a roughly 7.3% annual increase.