Healthcare sector continued to lead Westchester’s commercial real estate market in the third quarter, as leasing activity by other sectors took a breather, according to the market snapshot issued by Colliers International.
The market’s availability rate remained unchanged at 22 percent from the second quarter and had increased by 0.9 percentage points from a year ago.
Seven out of the top 10 leases in the third quarter, totaling 663,142 square feet, were signed by medical tenants. Montefiore’s 281,497 square-foot renewal in Yonkers accounted for 42.4 percent of the total activity.
Healthcare sector has been transforming the area’s business corridors, as former business office space has been converted into medical-related use.
Average asking rent for the third quarter took a small dip to $26.7 per square foot a year, or about 4.3 percent less than the second quarter when the figure was $27.9. The average rent for the third quarter last year was $27.51 per square foot a year.
The availability rate for the northern Westchester market remained the highest in the county at 36.8 percent because of large office space vacated by IBM and PepsiCo in prior years.
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Healthcare sector leads Westchester office market