STAMFORD, Conn. – CBRE’s Westchester and Fairfield County office announced second quarter of 2015 results for the office sector for both counties.
Each county saw improved conditions in several metrics studied, according to Robert Caruso, senior managing director of the firm’s Westchester/Fairfield County operations.
Fairfield County’s results were strong for the quarter and were notable for the 30 percent increase in activity on behalf of the county’s mid-sized tenants—those occupying space ranging from 10,000 to 50,000 square feet.
The overall pace for the quarter resulted in 721,141 square feet leased, down from 887,414 square feet the previous quarter. However, this drop was lessened by activity on the part of mid-sized tenants, and though the pace fell off slightly, the year-to-date volume was virtually unchanged from the 1.6 million square feet recorded at the end of the second quarter of 2014.
Stamford’s CBD and Central Fairfield County’s submarkets drove leasing during the quarter, with leasing in those areas totaling 287,707 square feet and 161,148 square feet, respectively. UBS’ 119,216 square foot lease at 600 Washington Boulevard in Stamford marked the county’s largest lease transaction for the quarter.
In Westchester County, fundamentals remained restrained for the quarter CBRE’s data shows, however there was momentum in several areas.
Overall, leasing activity in Westchester County rose sharply in the second quarter of 2015 as a result of PepsiCo’s 361,181 square foot relocation of its operations from Somers to 1111/1129 Westchester Ave. in White Plains.
This, the largest transaction in the county over the course of the second quarter, helped fuel the activity to rise to 594,502 square feet from the previous quarter, accounting for 61 percent of activity. With 586,053 square feet of negative net absorption recorded in first quarter of 2015, the PepsiCo deal was still not enough to generate positive absorption for the second quarter.
The county ended the first half of 2015 with 654,461 square feet of negative net absorption. Financial, accounting and information services tenants made up some of the top transactions for Westchester County over the course of the quarter, including Compass Group’s 25,927 square feet at 2 International Drive in Rye Brook, Marks Paneth’s 19,939 square feet at 4 Manhattanville Road in Purchase and Sqad Inc.’s 12,563 square feet in Tarrytown.
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