Report Shows White Plains Office Vacancy Lowest In Eight Years
In the second quarter of 2018, the White Plains Central Business District (CBD) reached its lowest overall office vacancy rate, just 18.2%, in almost eight years, according to a Westchester Market Report just released by Stamford-based Cushman & Wakefield.
At the same time, the report indicates overall office vacancy in Westchester County increased 630 basis points from one year ago, to 25.7%, while leasing activity fell nearly 54 percent between Q2 2017 and Q2 2018.
Rents across the county averaged $27.85-per-square-foot, down $1.30 from Q2 2017. Notable large blocks of space, mainly concentrated in the northern submarkets and priced below the market average, heavily influenced the downward pressure on the county’s overall average asking rent, according to the report. However, White Plains CBD’s asking rents registered a $0.18 increase over Q2 2017, ending this quarter at $33.18, making it 19.1% higher than the county’s average.
The East I-287 submarket lead leasing activity in Q2 2018, with The Standard Life Insurance Company of New York’s 21,793-square-foot new lease at 333 Westchester Avenue in White Plains being the largest lease of the quarter.
The Northern Westchester submarket recorded the largest office property sale in Q2 2018, with the closing of 115/117 Stevens Avenue in Valhalla at $12 million.
The report further indicates that transportation-friendly markets are a driver of office rental activity.
Jim Fagan, Managing Principal, Connecticut and Westchester Market Leader of Cushman & Wakefield said in a press statement announcing the report’s release: “We expect leasing activity to increase by year end, particularly in downtown White Plains, where the live-work-play trend continues to transform the market and drive potential occupancy growth. Tenants increasingly need to attract employees looking for ease of commute, in a community that offers many quality-of-life amenities within walking distance. This urban influence will continue to play an important role going forward as tenants consider opportunities in communities such as White Plains, which will be seeing additional benefits from the almost $100 million Metro North White Plains train station renovation project.”
