Simone: Projects Will Create Demand

WHITE PLAINS-The numerous high-rise luxury condo and rental projects in Westchester's urban centers are creating increased demand for office space here, so says Joseph Simone, president of Simone Development Companies of New Rochelle. Simone, who was the guest speaker at the Westchester County Board of Realtors' Commercial Investment Division meeting, says that tightening vacancy rates and increased demand will prompt developers to build new office product in Westchester County and the Bronx.

"We are all witnessing the vacancy factor shrinking in the office market," Simone said. "And I think you will see very shortly more new office construction. With all this residential construction going on all around us, people need places to work and we need to supply that need."

In fact, Simone said that he will begin construction sometime next year on a new 45,000-sf office building at his firm's Harrison Office Park. Just last week, officials with Reckson Associates Realty Corp. said that the REIT is likely going to begin construction later this year on a new 315,000-sf office building at its Reckson Executive Park in Rye Brook.

"I'm very bullish on the Westchester office market," Simone said. "I think you will absolutely see new construction. The vacancy rate is definitely shrinking, relatively quickly and again one of the reasons is the increase in housing and population has caused a greater demand [for office space]."

Simone told the gathering that his firm plans to begin construction on the second phase of his Hutchinson Metro Center office development in the Northeast Bronx this September. The $65-million project calls for the phased construction of two 260,000-sf, 10-story office towers, built alongside his $60-million, 460,000-sf Hutchinson Metro Center, which is 100% leased.

The first tower building will be constructed on spec. "Leasing is not a problem," he said, noting that there is a significant amount of demand for space at the project.

"We are talking to a tenant right now that wants 400,000 to 500,000 sf with 100,000 sf floor plates. I would have to build a separate building for them," he said. Simone did not identify the prospective tenant.

He also discussed his firm's $175-million Church/Division project in New Rochelle, which is currently in the approval process. Plans call for Simone to demolish an existing parking garage and build a new 860-space parking facility as well as a 39-story tower building that will contain more than 400 luxury condominium units. Construction on the parking garage could begin by March 2007 with ground breaking on the residential tower building in the fall or winter of 2007.