Despite an influx of new companies coming to Westchester’s commercial corridor along I-287, office vacancies are expected to increase a bit in 2013 before dropping significantly in the following years, according Jones Lang LaSalle.
A new analysis reviewed the key data points and market events since the real estate crisis took hold in 2009.
Erin Patterson, a researcher at the commercial real estate firm, said the initial drop in vacancy could come from a the departure of a tenant, which currently leases 35-40,000 square feet. She would not reveal the tenant.
The study compares the vacancy rates with the rental rates for corresponding fiscal quarter, and projected those rates to go up over the next several years as new purposes – including a recreation center, cancer treatment facility and a biotechnology lab – move onto the strip. Check out her chart below:
The study assumes that two new residential or hotel buildings could replace a couple of the empty office buildings on Corporate Drive in Harrison, where the town is considering a broader zoning policy in its new master plan.
It also accounts for Pepsi’s temporary stay at the former Starwood building on Westchester Avenue in White Plains and the possibility that Xylem stays within the corridor after it leaves 1133 Westchester Ave. in White Plains.
