Westchester County Office Market
Overall vacancy and availability grew to 23.6% and 26.9%, respectively, at the close of 2023. This level remains skewed by a single, 1.1-million SF block of obsolete office space long vacated by IBM in Somers. Without this block the total vacancy rate would drop to 19.4%. Leasing activity showed an improvement over the past year, ending 2023 with a total of 1.6 million SF, up 6.0% from 2022. The number of deals transacted grew by 57, from 253 in the prior year to 310 in 2023. It also comprised of 20 deals more than the 10-year historical average. Deals for less than 5,000 SF drove demand, capturing a third of the leasing totals, whereas large deals were scarce. Since 2021 there have been no office deals signed for more than 100,000 SF. Ongoing corporate downsizings by large tenants led to occupancy losses of 195,904 SF for the year. Rental growth rate softened in 2023, with the direct average asking rent ending at $28.70/SF, slightly increased from a year ago. While concessions have remained stable, taking rents are expected to continue to see slight upward pressure amid higher operating costs.
Download Westchester Office Market Report 4Q23