NORTHEAST SNAPSHOT, SEPTEMBER 2004
Hudson Valley Office Market
The New York Hudson Valley has numerous major office developments
in the works. The Hudson Valley, particularly the lower
Hudson Valley, is seeing the continued absorption of Class
A office space, notes Anthony Campagiorni, president
and CEO of the Hudson Valley Economic Development Corporation
(HVEDC). It is New York States fastest growing
region in terms of both job growth and population, which helps
foster a healthy office market.
National and international companies alike are relocating
to the area and many existing companies are expanding. In
the past year alone, more than 1.8 million of the 10 million
square feet originally listed on the HVEDC property database
have been leased, resulting in nearly 4,000 new jobs,
Nokia plans to establish a New York corporate office for
its Enterprise Solutions business group in a 102,000-square-foot
building located in Harrison. Before Nokia moves employees
into the office, the building will undergo nearly $30 million
in renovations. Also in Harrison, Morgan Stanley is investing
$227 million to transform what was the Chevron/Texaco headquarters
into a data center and backup trading facility. Two new tenants,
Argent Mortgage Company and Endurance Reinsurance Corporation,
have combined to lease more than 165,000 square feet of the
former Kraft headquarters in White Plains. Moving into the
Hudson Valley, New York Life is relocating 1,000 employees
from Manhattan to an executive center in Mount Pleasant.
In Rockland County, Avon has announced it will build a $100
million global R&D center in the city of Suffern. Scheduled
to be complete in early 2005, the 225,000-square-foot building
will house approximately 350 employees. WMC Mortgage of California
is establishing a new Northeast base in Orangeburg. The lender
is leasing 55,000 square feet of space at One Ramland Road
and has already hired more than 200 employees. Cadbury Schweppes
companies Snapple and Motts plan to combine headquarters in
Rye Brook, relocating more than 400 employees to a 135,000-square-foot
office space once the $10.9 million renovations are finished.
Further down the Hudson Valley, in Yonkers, nValley Technology
Center just opened a new office space after $14 million in
renovations that modernized the 116,000-square-foot former
home of Purdue Frederick Pharmaceuticals.
With the influx of prospective tenants, new developers are
moving into the Hudson Valley area as well. First Columbia
will build two new office buildings at New York International
Plaza at the Stewart International Airport in New Windsor.
Construction on the 60,000-square-foot and 20,000-square-foot
Class A office buildings will get underway in September and
be complete in spring 2005. Class A rental rates range from
$8 per square foot in the northern counties to the mid-$20s
in the lower Hudson Valley.
Cohen Brothers Realty recently acquired 333 Westchester Ave.
in White Plains, a 632,000-square-foot building with 50,000
square feet available. Castagna Realty, a newcomer to the
Hudson Valley, has developed Castagna Commerce Park in Pawling.
While development in Rockland and Westchester counties is
increasing, the Interstate 84 corridor shows the most promise
for near-term future development. The interstate highway links
Hudson Valleys two fastest growing counties: Dutchess
Thanks to its close proximity to New York City, outstanding
transportation infrastructure and workforce of 1.1 million
people, the Hudson Valley is blessed with a vibrant economy,
says Campagiorni. Companies seeking to relocate or expand
in the region will find abundant office buildings available,
including former headquarters, lab space, data centers and
The region easily accessed by six interstate highways,
six international airports, and extensive commuter and freight
rail service has one of the nations most advanced
telecommunications networks. With so much in the works for
this region, expect the Hudson Valley to continue to experience
growth in development of office space.
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