Westchester County Office Figures Q3 2026

Office fundamentals softened as supply increased and leasing activity slowed. The quarter posted negative net absorption of 78,000 sq. ft., reversing the 196,000 sq. ft. from Q2 2026. Availability increased 40 bps to 19.2%. This uptick breaks a seven-quarter streak of positive absorption. Tenants signed leases totaling 90,000 sq. ft., down from 240,000 sq. ft. in Q2 2026 and 180,000 sq. ft. in Q1 2026, the lowest quarterly volume in the period from Q3 2021 through Q3 2026. Despite weaker demand, average asking rents edged higher, reaching $30.45 per sq. ft. compared with $30.09 per sq. ft. in Q2 2026, amid a nonexistent construction pipeline.
Although the market did not witness a strong performance in Q3, the contraction of the office market has helped to stabilize availability and asking rents over the past several quarters. The quarter looks like a setback rather than a reversal of trends. Availability is still the second-lowest since Q3 2021, year-to-date net absorption remains positive at 246,000 sq. ft., and asking rents continued to edge higher.