According to John Jordan, Editor (Real Estate In-Depth News, Jan 28, 2025), commercial brokers and developers who participated in the Building Owners and Managers Association recently held annual State of the Market program were generally optimistic that the Westchester commercial real estate markets will continue to rebound from the devastation wrought by the COVID-19 pandemic.
While some segments are expected to be stronger than others, specifically the multifamily and industrial sectors, even the long-troubled Westchester County office market will be bolstered somewhat by a continued push by public and private companies to bring employees back to the office and building owners seeking to repurpose outdated properties.
The Jan 16 panel was moderated by Glenn Walsh, Executive Managing Director, Newmark, based in Rye Brook, featured: Andrew Weisz, President, of development firm RPW Group of Rye Brook; Bruce Berg, Chief Executive Officer, Cappelli Development Company of White Plains; Jay Black, Vice President Operations, Diamond Properties of Mount Kisco; and Howard Greenberg, President, Howard Properties of Valhalla.
Office Market’s Continued Transformation
At the recent program, Howard Greenberg noted that there are plans to possibly redevelop even more current office space to other uses, while there are other properties that either cannot or choose not to undertake any lease transactions at this time. He said that there is a significant amount of “shadow space” on the market today that is not available for one reason or another.
“So, I think the market will be further contracting in the very near future,” Greenberg predicted.
Greenberg also advised that tenants, looking for 20,000 to 30,000 square feet of space in the county, should be asking their prospective landlords the current status of their debt, when do they plan to refinance and what is their capital structure going forward since most office transactions now have a seven to 10-year term or longer.
“A lot of stuff can happen in seven to 10 years. You have to be prepared. It is kind of a new world. You used to assume that every landlord is financially viable, but you just cannot assume that anymore,” he said.
Greenberg noted that during his career he has witnessed four distinct economic downturns, but characterized the COVID-19 pandemic as “the most devastating” since it prompted economic and lifestyle changes that adversely impacted the office market in Westchester and elsewhere.
He believes that some market dynamics, such as remote work and hybrid work will be part of corporate operations “in perpetuity.”
What’s new at Howard Properties?
The New Year is off to a fantastic beginning at Howard Properties. I have signed agreements for a new real estate consulting project, and for an 18,000 high tech manufacturing tenant representation assignment.
In addition, I am working on multiple leases in the White Plains Central Business District, in Downtown Yonkers, as well as kicking off a new 25,000 square foot headquarters relocation assignment.
Stay tuned for updates on the above.
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