Westchester: a county in transition

Real Estate Weekly, Dec 22, 1993

The bad news: high utility rates, government regulations, lack of state assistance and competition from neighboring regions are repressing economic development in Westchester County. The good news: location, ample opportunities and quality of life counteract the negatives, making it an attractive place to do business.

These were the impressions shared by Westchester County's business leaders at a conference entitled "A County in Transition: How Savvy Businesses are Taking Advantage of Westchester's Changing Economy," on November 16. The conference, which attracted more than 100 area business and real estate executives, was held in the exceptional facilities at 2000 Purchase Street, and was sponsored by the Edward S. Gordon Company, the Westchester County Business Journal, the Westchester County Association, and the County Chamber of Commerce.

Two of the conference's panelists are business leaders who have recently signed new and expanded leases in Westchester County, despite the recent downturn in the economy.

Dr. Sol Steiner, president of Pharmaceutical Discovery Corp., said quality of life and labor force were the key factors for his firm's decision to remain in Westchester County.

"Based in Westchester, we are situated within a two-hour drive to 70 percent of the entire U.S. pharmaceutical industry," Dr. Steiner noted. "As for Westchester itself, it is a good place to bring clients, attractive, comfortable and easily accessible. It's also a good place to attract a talented, committed workforce."

Steiner, whose 3-year-old firm was rounded in Westchester, did voice a concern about the region: over-regulation of pharmaceutical and research facilities by New York State. He said that, for instance, it takes one full year to obtain a state license to handle radioactive materials, regardless of quantity. That regulation alone, he said, could prompt companies to consider relocation or cut Westchester County out of the running altogether.

"The state could do a lot to make Westchester a friendlier place for hightech firms," Dr. Steiner said. "Yet even without state assistance - and in spite of tremendous financial incentives offered by New Jersey - we felt that Westchester County remained the best location for our growing business."

Arlene Gandler, managing director of Moskowitz Jacobs Inc., a market research firm specializing in consumer product development, said location and quality of life were the prime factors in her firm's decision to remain in the county.

"When we expanded, we quickly decided that we wanted to stay in Westchester County," Gandler said. "We live here - and we wanted to work near our homes. We also like the easy access to other regions a Westchester County location affords."

According to Gandler, "image" was another prime consideration. "We feel that a Westchester County location provides us with an upscale and professional image," she said.

Panelist Michael Siegel, executive director of the Edward S. Gordon Company. said that quality of life and image issues continue to bolster the sagging real estate market in Westchester County. Pointing out that leasing activity in the county totalled nearly 1.5 million square feet by the thirdquarter of the year, Siegel noted that interest in the county remains high. Yet, at the same time, the strong leasing velocity could not offset the impact of space returned to the market by corporate downsizing.

One example of such corporate downsizing - representing a tremendous opportunity for another user - was the 2000 Purchase Street facility, highlighted as the site of the conference. This property, formerly occupied by IBM, is currently available for purchase by a major corporate user.

Both Gandler and Steiner pointed out that the downturn estate market created tremendous opportunity for their businesses, enabling them to take advantage of competitive rental rates and exceptional sites.

Panelist George Delaney, president of the Westchester Business Partnership, noted that more than 80 new businesses moved into the county in the last year, and more than 310 businesses expanded or relocated within the county.

"Clearly, Westchester remains a viable location for business," Delaney said. "Being able to provide tax and energy relief makes us more competitive. But we also need to look to the town, village and state officials for greater assistance when it comes to attracting and maintaining businesses in our county."

Siegel agreed, saying, "We aren't doing enough to maintain a competitive edge between Westchester, Fairfield, New York and New Jersey. We need to find more ways to level the playing field."

Panelist Kathleen Sullivan, regional director of the state's Department of Economic Development, said she has been working on a number of grants and programs to help businesses train employees and grow. "There are state programs that can help every single business in Westchester," she said.

The panel, which also included Lawrence Dwyer, president of the Westchester County Association and Harold Vogt, president of the County Chamber of Commerce, was moderated by Alfred DelBello, former county executive and lieutenant governor.