Westchester County Office Market
The total availability rate, which ended at 27.3%, remained unchanged from the year prior. The total vacancy rate hit a new record high of 25.3% for the second quarter in a row, with more of these availabilities becoming vacant as leases expire. 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 21.0%. After getting off to a slow start, leasing activity finished the third quarter with 346,000 SF of leases tracked. This resulted in a combined 1,028,000 SF of leasing year to date, 12.1% lower than levels registered during the third quarter of 2023 and remaining 21.2% below the historical third quarter average. In recent years smaller deals have kept leasing volumes well below average. This quarter deals ranging from 10,000 SF to 25,000 SF decreased by 19.3% from the third quarter of 2023. The county’s direct average asking rent ended at $28.63/SF this quarter, down from $28.72/SF last quarter and $28.72/SF in the third quarter of 2023.
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