NEW PALTZ, NY—The economy in the Hudson Valley region in NewYork State has been stagnant of late with office vacancies andasking rents showing little improvement, despite sharp reductionsin the area's unemployment rates in the past year.

JLL Managing Director ChrisO'Callaghan said that he expects conditions to remain thesame in most markets in the northern suburbs of New York, with onekey exception: “There is going to a drive to transportationcenters, the urban centers, because companies need to find highlyskilled employees.” He added that because businesses are looking toattract and retain young professionals coming out of college, theyare seeking to locate their offices in vibrant downtown districtsnear transportation centers.

O'Callaghan shared his thoughts as well as the latest officemarket statistics for a seven county Hudson Valley region at theHudson Valley Economic Development Corp.'s “Stateof the Hudson Valley Economy” program held at SUNY New Paltz onTuesday. At the event, HVEDC and JLL released their QuarterlyEconomic Report and their first Hudson Valley Business ClimateSurvey.