Recession up-state style - evaluation of real estate recession in northern New York state suburbs

Real Estate Weekly, Oct 21, 1992 by Barry F. Hersh

The northern New York suburbs have been experiencing their own version of the real estate recession, with some patterns different from New York City and other areas.

As in most places, there is an over-supply of office space. Right now, White Plains, especially downtown, seems most impacted with vacancy rates over 30 percent. The Stamford, Connecticut and Montvale, New Jersey, areas, previously hard-hit, seem to have stabilized with some positive absorption. Of course, between the credit crunch and poor market, there is no new speculative construction.

The industrial market has consistently been less weak. Vacancies have been between 10 percent and 15 percent, in a market with significant owner and single tenant occupancy. The most new activity seems to be the major distribution facility; Caldor's 500,000 square feet and Baxter's 800,000 square feet, both near Stewart Airport in Orange County.

Other areas, such as Rockland County, New York, and Shelton, Connecticut, seem to have increased occupancy particularly of the medium-sized (30 to 100,000 square feet) single-story flex-type space. At Rockland Corporate Park only one formerly owner-occupied building is available, and there has been increased interest by small to medium users at The Nyacks Corporate Park. It is actually difficult to place the smaller flex-type user in these markets.

One side note on brokers. In the past few months both Rockland and Orange Counties held brokers' tours. One could not help but be struck by the positive attitudes, good overall turnout, and significant attendance by brokers from New York City and the closer suburbs.