CBRE: Leasing Activity in Westchester County Stalls Due to COVID-19
27 Jul 2020
The Westchester County office market felt the effects of the COVID-19 crisis in Q2 2020 as a deep global recession led to sharp decreases in employment, consumer spending and business confidence. Westchester County’s slow pace of leasing in Q1 2020 carried over to the second quarter of the year with only 166,870 sq. ft. of new leases signed in the quarter, 38.7% below the five-year quarterly average. Renewal activity accounted for 34% of Q2 2020’s total leasing velocity of 253,174 sq. ft., which includes new leases and renewals.
“Finance, insurance and real estate tenants accounted for the largest share of leases by square footage in Westchester County during the second quarter of 2020, with CBRE arranging four of the five top transactions” said CBRE’s William V. Cuddy, Jr., an office broker specializing the Westchester County market. “While most of the deals during the quarter were under 5,000 sq. ft., activity during Q2 2020 skewed heavily toward Class A assets, which accounted for 86.6% of the quarter’s leasing velocity.”
Westchester County’s availability rate of 18.3% was unchanged from Q1 2020 as only 207,234 sq. ft. of new space was added to the market. However, year-over-year availability rose 100 basis points (bps) as companies looked to shed extra space.
The average asking rent for office space in Westchester County during Q2 2020 was stable at $29.06 per sq. ft., largely unchanged quarter-over-quarter and up 3.2% year-over-year.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.