The Westchester County investment real estate market remains a viable option for investors who have been priced out of New York City, where properties continue to trade at record-highs and asking rents continue to rise. Whether you are looking to reinvest proceeds from a prior investment or simply looking to expand your portfolio, keep an eye on these Westchester market trends:
Adaptive reuse in Westchester is strong
As companies migrate to dynamic urban centers, which offer easy access to talent and are luring both millennials and baby boomers alike with their walkable lifestyles, many suburban office buildings are sitting vacant. Both investors and developers are taking advantage of these opportunities to reposition existing assets for new uses.
In Harrison, a vacant office building off of Westchester Avenue is poised to be torn down and replaced with a 421-unit luxury apartment building known as The Residences at Corporate Park Drive. The Westchester County Business Journal reports this project will be the first conversion of an office for residential use along the 287 corridor. Similarly, an abandoned hospital campus in Port Chester is the site of a proposed $300 million mixed-use development. In Chappaqua, the 690,000-square-foot Reader’s Digest office building is set to be converted into market rate, workforce and affordable housing apartments.
Of note, Westchester’s office vacancy rate rose to a new five-year high of 22.4 percent at the end of Q2-2016.
Assets offering easy-access to transportation are in-demand
The pool of new developments along the Saw Mill Parkway and near area train stations continues to grow throughout Westchester County. Close proximity to public transportation remains paramount in attracting tenants and maintaining occupancy rates. Nowhere is this more evident than the city of Yonkers where private developers and city officials remain committed to the revitalization of the Yonkers Waterfront and surrounding areas.
Northeast PCG has emerged as a market leader in transacting multifamily and mixed use properties in Yonkers. Recent sales include investment properties located at 110 School Street and 14 Highland Avenue. Our newest Yonkers assignment is a mixed-use commercial and multifamily property in the heart of the city’s downtown redevelopment zone.
Economic development will bring jobs and purchasing power to the local economy
In the first 9-months of 2016, the Westchester County Industrial Development Agency (IDA) and Local Development Corporation (LDC) have supported $350 million in development through incentives and financing, which will lead to the creation of more than 1,200 jobs.
Biotech company Regeneron Pharmaceuticals also recently unveiled plans to double the size of its research and development center in Greenburgh. The phased development plan would be executed over a 10-year period and drive money into the local economy. Similarly, a number of new developments in neighboring counties also seek to help strengthen the local economy. If you’re curious about the investment real estate market in the rest of the Hudson Valley, check out our recent blog post.
As vacant office properties in Westchester are repurposed for new uses and economic development projects seek to create new jobs within the county, there remains opportunity for investors to purchase under-valued Class-B and Class-C assets and create the conditions to maximize returns.
New to the Westchester market and looking for an investment sales broker to help you identify the right investment properties for our portfolio? Download The Guide to Choosing an Investment Sales Professional for tips on how to identify a partner who is aligned with your long-term goals and strategies.