Medical tenants fill Westchester County’s empty office spaces

Average asking rents still declining and vacancies are up

New York /
Sep.September 08, 2014 12:00 PM

Westchester County’s office market continues to struggle, but the health care industry is providing some much needed medicine in the form of large leases for former corporate space.

Clinics, Labs And Research Centers Are Taking The Place of corporate operations as individual doctors consolidate their practices into large medical parks, the Wall Street Journal reported. Simone Development and Fareri Associates are repositioning their Purchase, N.Y., executive park as a medical center, according to the newspaper, while Memorial Sloan Kettering Cancer Center expects to open a new outpatient facility in West Harrison next month.

Nearly 4.9 million square feet of office space in Westchester has been converted for other uses since 2001, according to CBRE data cited by the newspaper. The amount of high-quality office space has fallen from 33.2 million to 28.4 million in that time.

The fall has not yet pushed up prices. In fact, average asking rents dropped 1.9 percent to $25.69 per square foot since 2011, according to JLL data cited by the Journal. Vacancies also increased to 20.6 percent from 19.2 percent over the past three years. [WSJ] — Tom DiChristopher


Related Articles

arrow_forward_ios
Renderings by Archimaera

LIC will soon house the nation’s largest passive house office

LIC will soon house the nation’s largest passive house office
From left: former Vornado CFO Joseph Macnow; ; Howard Hughes Corporation CEO David O’Reilly, former Cushman & Wakefield CFO Duncan Palmer (Photos via Vornado, Howard Hughes, Cushman & Wakefield)

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes
Shadow inventory in Manhattan’s flex-office market is contributing to the rising overall availability rate (iStock)

WeWork and Co’s woes add to rising shadow office inventory

WeWork and Co’s woes add to rising shadow office inventory
About 25 percent of employees had returned to work as of Nov. 18 (Getty; iStock)

Offices remain empty, and big cities are feeling the crunch

Offices remain empty, and big cities are feeling the crunch
CBRE CEO Robert Sulentic (iStock)

CBRE lowers SPAC IPO valuation target to $350M

CBRE lowers SPAC IPO valuation target to $350M
Union Crossing at 825 East 141st Street with LibreMax's Greg Lippmann (Union Crossing Bronx; LibreMax)

$78.6M sub-performing loan on Union Crossing up for sale

$78.6M sub-performing loan on Union Crossing up for sale
Convene CEO Ryan Simonetti (Convene)

Convene closes Manhattan locations as corporate events fail to return

Convene closes Manhattan locations as corporate events fail to return
(iStock)

What doom-and-gloom forecasts miss about the office market

What doom-and-gloom forecasts miss about the office market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...