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Westchesters largest blocks of office space are getting a closer look from prospective tenants and buyers, say real estate professionals -- a welcome sign in a market that has spent the past few years appreciating the importance of smaller deals.
Tenancies for up to 20,000 square feet still comprise most of the leases and purchases of space in the county's office market, as reflected in quarterly vacancy rate reports. But clusters of 100,000 square feet or larger -- as well as sites with rights to develop office space of that size -- have seen more interest by would-be tenants. Developers and brokers say their clients are eager to take advantage of cheaper rents and renovated properties in good locations near major highways and population centers.
Over the past year, two large buildings have undergone renovations while plans for four others have been made public Four large office sites and development rights for two others changed hands.
An Armonk building will resume construction in September after seven years, while Reckson Associates Realty Corp. submitted plans in June to expand its namesake Reckson Executive Park office campus in Rye Book, formerly known as Royal executive Park.
"It's a combination of things happening the improvement in the local economy, as well as interest in expansion by tenants within the county as well as from New York City," said Edward A. Lashins, president of Lashins Realty Services of Armonk.
Lashins is in the process of developing 90 Business Park Drive, a 110,000-square-foot office building on which he halted construction in 1991, with only a foundation in place. No leases have been signed, though talks are in progress with several would-be tenants, whom Lashins would not identify.
Plans for 90 Business Park Drive received a boost Aug. 5 when the Westchester County Industrial Development Agency (IDA) agreed to "induce" the $14.7 million project by agreeing to assist Westchester Park Associates L.L.C., of which Lashins is manager-member. The inducement should make the project more competitive by helping contain rents, now at $25 per square foot, a lawyer for Lashins told the IDA. Lashins is represented by Mark P. Miller of the Armonk law Veneziano & Oxman.
In interviews and statements, a half-dozen real estate professionals and developers said new interest has...