Page 42 - 2021 Westchester County Economic Development Guide

Real Estate
A Shifting Real Estate Landscape
COVID-19 forced us all to reexamine where – and how – we work and live. Here, three local real estate experts share key real estate trends shaped by the pandemic.
Westchester Forward
AN ‘AMAZING’
RECOVERY
Richard K. Haggerty, Chief Executive Officer, Hudson Gateway Association of REALTORS®
“The onslaught of COVID-19 brought the Westchester real estate market to an almost complete shutdown from the middle of March until the middle of June
in 2020, as all in-person real estate activities were halted,” says Haggerty.
“However, in the third and fourth quarters of 2020, the market came roaring back, primarily fueled by New York City residents moving out of the city and relocating into the suburbs.”
“By the end of 2020, single family home sales in Westchester finished 14% higher than 2019, and single family home prices were 12% higher than 2019. Given the three-month shutdown of real estate activity at the beginning of 2020, this recovery is truly amazing.”
Haggerty fully anticipates that the strong residential real estate market will continue in 2021, with one proviso. “At the end of the day, Westchester is a suburbofNewYorkCity,andforthereal estate recovery and the Westchester economy to be sustainable in the long term,theNewYorkCityeconomymust also recover, and that recovery could take several years. The prospects of [additional] federal stimulus monies for states and cities may speed up that recovery.”
REIMAGINING THE
MODERN WORKSPACE
Craig Ruoff, Executive Managing Director, Westchester County, NY, Colliers International
During the pandemic, Ruoff has been help- ing his clients save money in a variety of ways, negotiating rent abatements, us- ing existing security deposits, relocating
within their current building or another of their landlord’s properties and other creative solutions. “Most office tenants are paying rent whether or not their employees are going into the office,” ex- plains Ruoff. “They would be advised to reach out to a real estate expert for ad- vice. A good real estate expert can help with more than just a transaction”
According to Ruoff, the pace of the vaccine rollout will strongly impact the pace at which employees return to an office environment. “Currently, approximately 30% of Westchester’s workforce is coming into the office, compared with only about 10% in Manhattan.” Given this dynamic, “companies will have to consider how to reapportionpeople.Doesthehubmove out of the city into the suburbs? Does it maintain a satellite office in the city?” Additionally,notesRuoff,regardlessof location, companies must modify how they work for the foreseeable future. “The high density open concept office is no longer a desirable environment. Companies are also advised to maintain partial work from home schedules, as well as strict temperature check and visitor policies.”
A HOT
INDUSTRIAL MARKET
Sarah Jones-Maturo, President,
RM Friedland
“The biggest trend we’re currently see- ing is tremendous demand for residen- tial development sites and particu- larly from historically urban developers,”
says Jones-Maturo. “Additionally, de- mand is shifting from transit hubs back to more single and multi-family homes in more traditionally suburban residen- tial areas.”
Citing a hot industrial market, Jones-Maturo notes that “developers are looking for opportunities to build industrial. With a sub seven percent availability rate, the market is very tight, and this is putting upward pressure on pricing.”
The repurposing of office buildings will continue and what we may begin to see is a repositioning of some obsolete office buildings into industrial buildings.
On the retail front, Jones-Maturo anticipates continued demand for second generation retail and restaurant space. “Despite pockets of activity, demand has been sluggish in all New York suburbs – apart from grocery-anchored centers and second generation restaurant space, which are still doing relatively well.”
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WESTCHESTER COUNTY ECONOMIC DEVELOPMENT GUIDE
© Ethan Ruoff
© Courtesy of RM Friedland