78°
The data regarding the county's commercial real estate market came from Houlihan Lawrence's Q3 Commercial Market Report, released on Tuesday, Oct. 29.
According to the real estate brokerage, demand for retail space in Westchester "continues to evolve rapidly," as consumers have healthy purchasing power and are on the lookout for "convenience, performance, and value."
Some particular businesses experiencing success include food concepts with strong management and superior quality and service, which have taken off since the pandemic. On the other hand, though, older franchises like Walgreens and Stop & Shop have closed stores in an effort to improve their profitability, the report said.
Overall, retail had a positive supply-demand balance during Q3 and lease prices increased 2 percent from the last quarter, the report added.
Demand was also "robust" for residential apartments in Westchester during Q3, the report said. Despite this though, occupancy has slightly weakened and conversion rates from visits to leasing has declined "significantly."
"As a result, the next few quarters may be challenging for Westchester multifamily projects," the report said, continuing, "Modest fundamental challenges are likely to put a temporary cap on rental pricing gains."
Less successful commercial markets in Westchester during Q3 included offices, which had an unfavorable supply-demand balance and "very subdued" leasing activity, as well as industrial space, which experienced "cooled" demand because of decreased economic activity.
Lease prices for offices increased in Q3, while it slightly declined for industrial properties in Westchester, according to the report.
As a whole, the number of transactions in the county decreased during Q3 because of scarce financing, the report added.
Click here to follow Daily Voice Somers and receive free news updates.
