More NYC Firms Looking for Space in Westchester

That was the consensus of those who participated at the Westchester-Fairfield Chapter of BOMA's Annual State of the Market meeting held on Jan. 9 at the Crowne Plaza Hotel in White Plains.

Salvatore Campofranco, senior vice president/managing director of the Westchester/Connecticut division of Reckson Associates Realty Corp., said that thanks to the credibility afforded Westchester by Morgan Stanley's purchase and investment at the former Chevron/Texaco building in Harrison, the county is starting to see increased interest from New York City firms looking for space in the 10,000-sf to 30,000-sf range.

"I think White Plains and Westchester has good momentum underway relating to Midtown (Manhattan) companies looking to come up," Campofranco said. He noted some firms already have some employment base that live in either Westchester or Fairfield so that companies can now offer those workers an option to work closer to home.

He added that access to the White Plains Metro North stations with sufficient reverse commute options to and from New York City as well as favorable rental costs, have made quality downtown White Plains buildings attractive to some midtown New York City firms.

Michael Siegel, executive managing director of Insignia/ESG, agreed, but said another factor may be in play in terms of potential New York City decentralization programs in the suburbs.

"I think a lot of tenants are concerned not so much about 9/11 because I think we are beyond that, but the quality of life which they are afraid is slipping in New York, and that I hate to say bodes well to some degree for the suburbs."

He added that the suburbs will also see some New York City firms set up back-up operations here in 2003.

"I think that tenants have come to grips with the fact that they are going to have an operation that doesn't have to be in New York City and as a component of that operation they can have space that is there for an emergency. That is starting to become more and more of a reality," he said.

Frank Tomasulo, senior vice president of CB Richard Ellis, said there is by no means a wholesale movement of firms from New York City, but his firm is working with a number of New York City firms that are looking for "dark" space or conventional space for some of their operations.

Campofranco, Tomasulo, Siegel and Jeffrey Newman, executive vice president with W&M Properties, agreed that the commercial office market in Westchester and Fairfield will continue to make slow and steady progress in 2003 to lease up vacant and sublease space. All also contended that a real recovery will not take hold until 2004 and into 2005.

Howard Greenberg, a principal of Howard Properties of White Plains, was the moderator for the program.