Westchester Business District: 2025 Market Outlook

Activity in the commercial real estate market in Westchester is picking up in early 2025.

The largest real estate transaction in the 287 East submarket is reportedly closing sometime in May. The buildings known as 701, 707, 709, 711 and 777 Westchester Ave. were developed by Lowell Schulman in the late 1970’s and early 1980’s (totaling 660,000 square feet) will be taken off the inventory this quarter. These were the anchor of the submarket previously known as the Platinum Mile and were (in their time) an example of the best in suburban office space in the county.

These five buildings are being purchased by an out-of-town developer whose intent seems to be to construct a new mixed-use development on the site. The buildings have almost completely emptied out over the last few years, as the present ownership has not had the funds to do new lease transactions or to maintain the office park to a proper standard.

This is a very prominent site on the Cross Westchester Expressway, just east of the White Plains Central Business District. Of course, zoning changes and approvals will likely take years to achieve and will certainly face opposition from local neighborhood associations. The developer is rumored to have “patient money” and it is likely that the buildings will continue to deteriorate while he waits for the opportunity to redevelop this very large site.

East of the 700 buildings, New York Presbyterian Hospital continues its massive reconstruction at 1111-1129 Westchester Ave.

One of the buildings will be used as administrative offices and the other building is being converted into medical offices. This 380,000 square foot former headquarters of Nine West and most recently Pepsico (during renovation of its Purchase headquarters campus) will come alive again as the largest office building repurposing project in recent years.

There is also a lot of activity in the White Plains Central Business District (CBD):

The New York Power Authority has struck a deal to purchase a development site which was slated to be part of a 4 building multi-family development at Hamilton Green and will build its own state-of-the-art energy efficient headquarters there.

• This transaction will keep this important tenant in the CBD and will result in the construction of the most energy-efficient and sustainable office building in Westchester. Its current headquarters at 123 Main St. (literally across the street from the new headquarters) will either be razed or redeveloped.

The NYS Attorney General’s office renewed and expanded at 44 South Broadway, and PURE Insurance is relocating from that building to 1 No. Lexington Ave.

Law firm Leason Ellis is also relocating to 1 No. Lexington Ave from 1 Barker Ave, whose site will likely become a multi-family development in the future.

The law firm of Delbello, Donnellan, Weingarten, Wise & Wiederkehr has moved to 360 Hamilton Ave., vacating its long-time space at 1 No. Lexington Ave.

Transunion has retained one of the 3 floors at City Square it had been subletting from former tenant Bunge and will give back the other two at the end of its sublease. Landlord Ginsburg Development already has activity on the soon to be vacant floors.

New retail tenants in place or coming to City Square include Yoga Six, GolfTEC, a new gourmet grab and go food concept as well as wine shop and multiple eateries.

There is also a new Martine’s Bakery and an unnamed steak house coming to the brand-new apartment building at 25 No. Lex, right across from the Metro-North Station. This L-shaped copper colored building is certainly the most interesting design of all the new multi-family buildings in Westchester.

Howard Properties Represents Homeocare Laboratories in 12,833 Square Foot Lease Extension and Expansion

Howard E. Greenberg, President of Howard Properties, Ltd. announced his firm represented Homeocare Laboratories, Inc. in the extension and expansion of its lease at 7 Odell Plaza, Yonkers, New York.

The FDA-approved laboratory produces a variety of homeopathic remedies. It was founded in 1995.

“My client is in a growth mode, as they were when I represented them some eight years ago. We were able to achieve a 65% expansion of their space and potential additional expansion in the future in a very space-constrained market.” said Mr. Greenberg.

Mr. Greenberg represented the tenant, and Jeffrey Warner of Robert Martin Company and William Anson of RM Friedland Realty represented the landlord.