Large Firms Focus on Westchester County

Area brokers say Nokia, ITT, Kraft Foods, Dannon and Lillian Vernon are on the market for space. In addition, Anthony Campagiorni, president of the Hudson Valley Economic Development Corp., said that a major auto training facility is in the market for approximately 200,000 sf of space, including about 100,000 sf of laboratory-type space. The firm, which is also looking at other properties in the New York metro area, should make a decision by April, Campagiorni added.

Campagiorni, who was the keynote speaker at the Westchester County Board of Realtors' Commercial Investment Division meeting on Feb. 19, refused to divulge the identity of the auto training facility. He said the firm appears focused on the New York metropolitan area to house the complex and the company is looking at one site in Westchester County, two properties in Rockland County and one location in Orange County.

Nokia is on the market looking for approximately 100,000 sf of space, according to area brokers. Keith Nowak, a spokesman for Nokia, confirms reports that the firm is conducting a search for space in the New York metro area, including sites in Westchester County. The firm may be making a decision relatively quickly since Nowak says Nokia wants the new office to be functional by mid-year. The company plans to house approximately 150 people in its new regional office and would shift some workers from its corporate headquarters in Irving, TX.

As previously reported on GlobeSt.com, the Dannon Co., which is currently based at 120 White Plains Rd. in Tarrytown, is in the market for approximately 50,000 sf of space and could pull the trigger soon on a deal to relocate to 100-105 Hillside Ave. in Greenburgh. Earlier this month, the Westchester County Industrial Development Agency induced the firm's application for sales tax exemptions in connection with the 100-150 Hillside Ave deal. However, at press time the company has yet to make a final decision on if it will move out of its current US headquarters space in Tarrytown. The company is said to have considered some properties in Fairfield County, CT, although area brokers believe the firm will remain in Westchester County.

Other corporate requirements said to be looking at properties in the county include: Lillian Vernon, which is looking for approximately 50,000 sf of space; ITT Corp., which is said to be in the market for approximately 75,000 sf of space; and Kraft Foods, which acknowledged that the company requires additional space in the Tarrytown area due to the decision to move out of the Altria Group's complex at 800 Westchester Ave. Brokers say the firm is looking for somewhere between 50,000 sf to 100,000 sf of space. Lillian Vernon currently leases space at the former Dictaphone building in Rye Brook and ITT currently has operations at 4 West Red Oak Lane in White Plains.

John McCarthy, a principal of McCarthy O'Callaghan Co. of White Plains, says the level of tenant interest in Westchester County is definitely higher than a year ago. "Today we have a number of companies looking for space in Westchester, we couldn't say that a year ago," he says. While most of the requirements are Westchester-based companies, McCarthy notes the good news is that these firms appear to have made a commitment to stay within the county borders.

Commenting on the potential for leasing activity in 2004, McCarthy says, "My feeling is that last year was sort of a yawner. The leasing activity has definitely picked up this year."

Stephen Banker, managing principal of Newmark & Co. Real Estate, characterizes tenant interest in Westchester as "very encouraging, especially on the heels of the Snapple deal at 900 King St." He notes, "When you put it all together and if you take the Kraft (Altria Group) building out of the equation, what you start to see is that there are very few viable class A properties to select from. The (Westchester) market has definitely improved and I suspect that as the year progresses there will be new names that are introduced as well that will be looking for space in Westchester."