Westchester County Real Estate Market Reports

Westchester County Office Market

Total availability declined to 25.0% and vacancy dropped to 23.6%, both reaching their lowest levels since 2021. Nearly 550,800 SF of positive absorption in the first half contributed to the drop, aided by the removal of 400,000 SF of obsolete space at the former “700 Series” complex and renewed government sector activity in the White Plains CBD. Sublease availability also fell to just 1.5%, another post-2021 low. After a slow start to the year, demand rebounded in the second quarter, bringing total first-half leasing volume to approximately 820,000 SF, an 11.3% increase over midyear 2024, though still trailing the 10-year historical average by about 100,000 SF. The White Plains CBD led with nearly 265,000 SF transacted, representing roughly one-third of all leasing, up 22.8% year-over-year and nearly 10% above its long-term average. This second-quarter boost helped close the gap toward the historical midyear average of 900,000 SF, following three consecutive sluggish first halves. The Northern Westchester submarket also gained momentum, highlighted by Ralph Lauren’s 25,000 SF lease at Pepsi Way in Somers and a lease by White Plains Hospital at 2651 Strang Boulevard in Yorktown Heights. Pricing moved higher over the past quarter, with Class A ($29.39/SF) and Class B ($26.50/SF) rates rising 1.9% and 2.6%, respectively. The increases were largely driven by the removal of 400,000 SF of lower-tier space at the obsolete “700 Series” complex. This reset the market baseline, shifting the weighted average upward as higher-priced space now carries greater influence, while also tightening availability and adding upward pressure on rents.