hvedc economic report
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JULY 2013
QuarterlyEconomicReport
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
NYS
THRU
WAY
Rive
r
Ashokan Reservoir
Hudso
n
S S
17
17199
22
22
28
32
32
32
42
52
52
52
55
55
97
97
209
209
209
44
44
6
9
9W
9W
9W
68484
87
87
Neversink R
.
Delaware
River
CATSKILL PARK
84
95
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
from 1.3% in 2012
from 1.1M in EOY 2011
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
from 7.6% in 2012
Employment Trend Shows Steady RiseWelcome to the first edition of the HVEDC-Jones Lang LaSalle Quarterly Economic Report, produced by the Hudson Valley Economic Development Corp. in partnership with commercial real estate firm Jones Lang LaSalle. We are excited to present the very latest economic trends that define the future of the Hudson Valley.
In the second quarter the Hudson Valley saw 1.4% growth in employment, just larger than the 1.3% growth a year ago. Rockland and Westchester counties led with employment growth of 2.2% and 1.8%, respectively. The number of office users continued to grow, by 0.4% - less than the 1.4% growth a year ago.
Other news of note:• While the Hudson Valley experiences major
personnel reductions at IBM Corp., we see a spectrum of business growth at other technology companies with recent announcements including Varta Microbattery establishing a new U.S. headquarters in Rye and Bloomberg LP building a massive 130,000-square-foot data center in Orangeburg.
• Early in the quarter, HVEDC helped secure $9.5 million from China’s Yongyi Group for Yonkers-based biotech firm, ContraFect Corp.; NY BioHud Valley’s Regeneron announced a major expansion of its headquarters and laboratories, which will add 400 jobs; and national organic foods distributor United Natural Foods announced a new facility in Montgomery.
• Gov. Cuomo’s Start-Up NY program is positioning State University of New York campuses as tax-free zones, which coincides with HVEDC’s recently announced Hudson Valley 3D Printing initiative at SUNY New Paltz. For more information, go to www.hudsonvalley3dprinting.com.
Laurence P. Gottlieb President and CEO HVEDC
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
SULLIVAN-ULSTER
DUTCHESS-PUTNAM
ROCKLAND-ORANGE
Total Labor Force (EOY 2012)
Employment Growth (Q2/Q2)
Unemployment Rate (May)
1.2M 6.6%
Hudson Valley Employment Q2 2013
1.4%
+ 5,837 jobs Professional and business services; education and healthcare
+ 2,776 jobs Education and healthcare; trade, transportation and utilities
+ 726 jobs Leisure and hospitality; construction
+ 662 jobs Trade, transportation and utilities; leisure and hospitality
Job
Gai
ns (l
ast 1
2 m
onth
s)
&
Lea
ding
Indu
stry
Driv
ers
From 1.1M in 2011 From 1.3% growth in
2012 From 7.4% in 2012 as
more people are actively looking for jobs
Rockland & Westchester strongest overall empl. growth at 2.2% and 1.8% Q2/Q2.
Hudson Valley office-using empl. growth slowed to 0.4% Q2/Q2.
Office-using empl. was up 1.4% in 2012.
Westchester office-using employment grew 1.3% Q2/Q2.
Education & healthcare and leisure & hospitality driving empl. growth.
WESTCHESTER COUNTY
Hudson Valley Labor Market
ECONOMIC REPORTUARTERLYQH V E D C - J O N E S L A N G L A S A L L E
JULY 2013
Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Office vacancy rate by market 2012Q2 2013
The Orange-Rockland submarket posted the lowest vacancy in the second quarter 2013 at 14.2%, relatively flat compared with the close of 2012.
The vacancy rate declined the most since year-end 2012 in the Dutchess-Putnam submarket; add sentence or two of greek text for why explanation coming later from JLL….
Year-to-date leasing activity is the highest in Westchester County at xxx,xxx square feet. The largest deal signed was xxx.
OVERVIEW
Hudson Valley Q2 2013 Office Market
Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Asking rent (cost per square foot) by market 2012Q2 2013
Adaptive re-use in Westchester County is helping to tighten supply side fundamentals. The possibility of mass rezoning along the Westchester Avenue/Interstate-287 Corridor could lead to more conversions of office space.
The local biotechnology and life-science industry continues to be a growth opportunity with the iBio-NY incubator at New York Medical College in Valhalla and Hudson Valley Economic Development Corp.’s NY BioHud Valley cluster development initiative in place.
The Orange-Rockland submarket is expected to bottom and transactions will still be dominated by renewals.
THINGS TO WATCH Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Office vacancy rate by market 2012Q2 2013
The Orange-Rockland submarket posted the lowest vacancy in the second quarter 2013 at 14.2%, relatively flat compared with the close of 2012.
The vacancy rate declined the most since year-end 2012 in the Dutchess-Putnam submarket; add sentence or two of greek text for why explanation coming later from JLL….
Year-to-date leasing activity is the highest in Westchester County at xxx,xxx square feet. The largest deal signed was xxx.
OVERVIEW
Hudson Valley Q2 2013 Office Market
Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Asking rent (cost per square foot) by market 2012Q2 2013
Adaptive re-use in Westchester County is helping to tighten supply side fundamentals. The possibility of mass rezoning along the Westchester Avenue/Interstate-287 Corridor could lead to more conversions of office space.
The local biotechnology and life-science industry continues to be a growth opportunity with the iBio-NY incubator at New York Medical College in Valhalla and Hudson Valley Economic Development Corp.’s NY BioHud Valley cluster development initiative in place.
The Orange-Rockland submarket is expected to bottom and transactions will still be dominated by renewals.
THINGS TO WATCH
About Hudson Valley Economic Development Corporation (HVEDC)HVEDC is the leading economic development agency for the seven-county region of Westchester, Putnam, Dutchess, Rockland, Orange, Ulster and Sullivan counties. The public-private partnership markets the region as a prime business location to corporate executives, site selection consultants and real estate brokers. HVEDC created the branding and promotional efforts for industry cluster initiatives Hudson Valley 3D Printing, the Hudson Valley Food & Beverage Alliance and NY BioHud Valley. For more information or to review available business sites, visit www.hvedc.com or call CEO Laurence P. Gottlieb at 845-220-2244.
Hudson Valley Economic Development Corp.
4 Crotty Lane, Suite 100 New Windsor, NY 12553
845.220.2244
Laurence P. Gottlieb, President and CEO
SUMMER 2013 | HVEDC-Jones Lang LaSalle Quarterly Economic Report
Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Office vacancy rate by market 2012Q2 2013
The Orange-Rockland submarket posted the lowest vacancy in the second quarter 2013 at 14.2%, relatively flat compared with the close of 2012.
The vacancy rate declined the most since year-end 2012 in the Dutchess-Putnam submarket; add sentence or two of greek text for why explanation coming later from JLL….
Year-to-date leasing activity is the highest in Westchester County at xxx,xxx square feet. The largest deal signed was xxx.
OVERVIEW
Hudson Valley Q2 2013 Office Market
Westchester Orange-Rockland Dutchess-Putnam Sullivan-Ulster
Asking rent (cost per square foot) by market 2012Q2 2013
Adaptive re-use in Westchester County is helping to tighten supply side fundamentals. The possibility of mass rezoning along the Westchester Avenue/Interstate-287 Corridor could lead to more conversions of office space.
The local biotechnology and life-science industry continues to be a growth opportunity with the iBio-NY incubator at New York Medical College in Valhalla and Hudson Valley Economic Development Corp.’s NY BioHud Valley cluster development initiative in place.
The Orange-Rockland submarket is expected to bottom and transactions will still be dominated by renewals.
THINGS TO WATCH
Overview• The Orange-Rockland submarket posted the lowest
vacancy in the second quarter 2013 at 14.2%, relatively flat compared with the close of 2012.
• The vacancy rate declined the most since year-end 2012 in the Dutchess-Putnam submarket due to the sales of 600 and 640 Auditorium Drive to Linuo Solar Group.
• Year-to-date leasing activity is the highest in Westchester County at just less than 530,000 square feet, on par with the first quarter.
Things to watch• Adaptive re-use in Westchester County is helping
to tighten supply-side fundamentals. The possibility of mass rezoning along the Westchester Avenue/Interstate-287 Corridor could lead to more conversions of office space.
• The Orange-Rockland submarket is expected to bottom and transactions will still be dominated by renewals.
• Gov. Cuomo’s StartUpNY initiative, which creates tax-free zones on SUNY campuses, will generate new economic development opportunities for entrepreneurs by turning sections of academic institutions into for-profit business enclaves. As more details emerge, check with HVEDC for the latest program developments.
About Jones Lang LaSalle ResearchJones Lang LaSalle’s research team delivers intelligence, analysis, and insight through market-leading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s challenges and opportunities. Our 300 professional researchers track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivaled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.
Leasing
Chris O’Callaghan
Research
Erin Patterson
www.us.joneslanglasalle.com
www.us.joneslanglasalle.com/ct-westchester
Quarterly Economic Report | Summer 2013