Westchester County Office Market
Year-to-date leasing activity reached 1.2 million SF in 225 deals. Although trailing behind last year’s leasing volume, the number of deals transacted grew by a count of 45 year-over-year. This indicates an increase in small sized deals, whereas large deals are becoming scarcer. Since 2021 there have been no true office deals signed for more than 100,000 SF. On the flip side, medical or pharmaceutical deals continue to drive activity. The latest being White Plains Hospital, which signed a new deal for roughly 50,000 SF at 750 White Plains Road in Scarsdale. The county’s overall vacancy rate remains historically high, ending the third quarter at 23.9%. However, 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 19.8%. Overall asking rents continue trending upwards since the pandemic, though the growth rate has softened considerably this year. The direct average asking rent ended the third quarter of 2023 at $28.91/SF, 7.4% above the 2019, pre-COVID average asking rent of $26.92/SF.
Download Westchester Office Market Report 3Q23