Westchester County Office Market
Overall vacancy and availability grew to 25.7% and 27.1%, respectively, at the close of 2024. 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 21.3%. Leasing activity showed a decline over the past year, ending 2024 with a total of 1.4 million SF, down 14.5% from 2023. The number of deals transacted shrunk by 47, from 314 in the prior year to 267 in 2024. It also comprised of 23 deals less than the 10-year historical average. Deals for less than 5,000 SF drove demand in the fourth quarter, capturing 80% of the leasing totals, whereas large deals were scarce. Ongoing corporate downsizings by large tenants led to occupancy losses of 314,990 SF for the year. Rental growth rate softened in 2024, with the direct average asking rent ending at $28.43/SF, slightly decreased from a year ago. While concessions have remained stable, taking rents are expected to continue to see slight upward pressure amid higher operating costs.