Mack-Cali Reports Westchester Market is Stabilizing

Although leasing activity at Mack-Cali's Westchester-Connecticut portfolio in the first quarter of this year was down slightly from a year ago, company officials note that leasing interest at its suburban portfolio has picked up around 15% as compared to last year. They add that last year's leasing numbers were skewed a bit by several large lease renewals.

Grossman, who was a guest speaker at the Westchester County Board of Realtors Commercial Investment Division meeting on May 14, said that the firm was pleased with its first-quarter leasing performance. Mack-Cali completed 248,136 sf of leasing transactions at its New York and Connecticut properties during the first quarter of 2003.

The Cranford, N.J.-based REIT's portfolio in Westchester was 96.6% leased at the end of the first quarter of 2003.

Grossman said, "In the Westchester market the trend we have seen is the sublease space coming to the market has abated and that is consistent with our portfolio." Based on the drop in sublease space, combined with office availability rates and rental rates holding steady in the region, he noted that Mack-Cali is "conservatively optimistic" that the region's office markets will continue to stabilize through the end of 2003.

Among the major initiatives Mack-Cali is currently engaged in includes ongoing negotiations with Westchester County government on the development of a Bioscience Park on a vacant 60-acre parcel of land at the Grasslands campus in Valhalla, NY.

Grossman notes that Mack-Cali has been selected as the designated developer and is holding discussions with Westchester County to finalize an agreement.

In total, there could be as much as 950,000 sf of new development potential at the Grasslands site. Mack-Cali is also holding talks with New York State lawmakers about possible infrastructure and regulatory assistance it might obtain for the venture.

In addition, Mack-Cali is marketing a total of about 140,000 sf of available office space at 555 Taxter Rd. in Elmsford, NY. Most of the space was made available due to the relocation of Fuji Photo Film, U.S.A., Inc. to Valhalla.

The company plans to invest in the property by upgrading its lobbies and common areas. Grossman said of the Taxter Rd. property, "It is the best large block of available space in the county with the most prominent signage available in the county." The signage outside the building is visible from both I-87 and I-287.

Recently, the company announced four of its largest lease transactions in the first quarter of this year. E & B Giftware LLC, a designer, developer and manufacturer of gift products, leased 28,430 sf at 4 Executive Plaza in Yonkers, NY. The lease represents an 8,075 sf expansion of E&B Giftware's current space. The 80,000-sf office/flex property, located at South Westchester Executive Park, is 99% leased. Carol McGuire, in-house leasing director, represented Mack-Cali in the transaction. Westinghouse Air Brake Technologies Corp., a manufacturer of train equipment, renewed its 28,000 sf lease at 4 Warehouse Lane in Elmsford. The 195,500-sf industrial/warehouse facility, which is located in the Elmsford Distribution Center, is 100% leased. Ivan Abry, in-house leasing director, represented Mack-Cali in the transaction.

Baker Engineering New York Inc. signed a lease renewal of 16,446 sf at 400 Executive Blvd. in Elmsford. The 42,200-sf office/flex building, located at Cross Westchester Executive Park, is 100% leased. Mitchell S. Pearl of Equis Corp. represented the tenant and Lou Amalfitano, in-house leasing director, represented Mack-Cali in the transaction. Also, Mamiya America, a distributor of professional photographic products, signed a renewal for 16,300 sf at 8 Westchester Plaza at the Cross Westchester Executive Park. The 67,200-sf office/flex building is 97% leased. Abry represented Mack-Cali in the transaction.