Westchester County Real Estate Market Reports

Westchester County Office Market

Market fundamentals continued the trajectory seen in the first half of 2025, with absorption improving even amid lighter leasing activity as outdated inventory continued to exit the market. Vacancy fell to 22.7%, direct availability declined to 23.1%, and sublease availability dropped to just 1.3%, signaling increasingly tight supply. Much of this improvement reflects the removal of more than 400,000 SF at the former “700 Series” complex and steady activity in the White Plains CBD. After a brief rebound in the previous quarter, leasing activity slowed again in Q3. Total volume, which ended at 300,000 SF, finished 18.7% below the third quarter of 2024, with new lease transactions down 28.5% and renewal activity down 19.8% year-over-year. The scarcity of quality space, particularly around transit-oriented buildings in Downtown White Plains, contributed to the softer pace. Even so, the slowdown appears more like a temporary pause than a true pullback, as many occupiers continue to evaluate long-term space needs amid broader economic uncertainty. Average asking rents continued to trend higher in 2025, driven largely by the removal of more than 400,000 SF of lower-tier space at the “700 Series” complex. This reset the market baseline, tightening availability and shifting the weighted average upward as higher-quality space now carries more influence. As a result, Class B asking rents climbed sharply year-over-year, rising from $25.72/SF in Q3 2024 to $27.44/SF, a 6.7% increase.