T h e 2 0 1 4 h u d s o n V a l l e y
Overview A joint partnership study between the Hudson Valley Economic Development Corporation and Jones Lang LaSalle.
The 2014 Hudson Valley Business Climate Survey issued by HVEDC in partnership with JLL was distributed to a variety of businesses and commercial real estate brokerage firms throughout the Hudson Valley. The purpose of the survey was to gain insight into the business community’s outlook for their industries and for the region as a whole. While responses trend neutral, challenges remain in the areas of business friendliness of government, competitive incentives, tax exemptions, and high business costs and cost of living due to the overall tax burden.
Counties represented
industries represented
59%of respondents reported their business
entity type is a corporation.
82%of respondents reported their company
had less than 50 employees.
dutChess
orange
putnam
roCkland
sullivan
ulster
WestChester
aCCommodations & Food serviCes
manuFaCturing& distribution
arts &entertainment
media, marketing &advertising serviCes
FinanCial serviCes& aCCounting
inFormationteChnology
healthCare &eduCational serviCes
non-proFit
legal serviCes
real estate
liFe sCienCes& bioteCh
proFessional &business serviCes2
13
rES
po
nD
EnTS
DEMoGrApHICS
Business Climatesurv ey
pErCEpTIon
12-MonTH oUTLooK
50% 77%
83% 41%
project an increase in hiring.
of respondents have a neutral or favorable outlook for the oVErALL
business climate in 2015.
of respondents have no plans to relocate.
project staff size willstay the same.
50%
56%
32% of respondents think the oVErALL business
climate is in neutral territory.
of respondents believe their industry is growing, and more than half of respondents say their
company is in growth mode.
of respondents think the business climat for their industry is favorable, while 34% of respondents think the business climate for
their industry is in neutral territory.
· hospitality & tourism, Food & beverage and agriculture were respondents' choices for top industries.
· Most respondents cited Quality of life as a benefit of doing business in the region.
ArEAS oF IMproVEMEnT
73%of respondents feel the overall costs of doing business are challenging.
almost half of respondents rated the availability of skilled workers, as well as the availability of managerial/professional workers, to be average.
54%of respondents rated the business friendliness of regional government
as poor or somewhat poor.
2015 2015 RevenuePRojections:
uP
66
%
sAMe
22
%
DoWn
12%
Business sentiment
• Dutchess/Putnam Multifamily
oFFICE MArKET FUnDAMEnTALStenAnt neutRAL LAnDLoRD
• Westchester office
• Westchester Multifamily
touring and leasing activity of all property types is…
• Westchester industrial, retail
• rockland/orange office, industrial, retail
• dutchess/putnam office, industrial, retail
• sullivan/ulster office, industrial, retail, multifamily
• rockland/orange multifamily
• Mostly the same as last year in Westchester County.
• Mostly the same or worse than last year in rockland/orange Counties.
• Mostly the same or worse than last year in Dutchess/putnam Counties.
• Mostly the same as last year in Sullivan/Ulster Counties.
• Most office tenants are under 10,000 sq. ft.
• Most industrial tenants are between 10,000 and 50,000 sq. ft.
• Most retail tenants generally under 10,000 sq. ft.
market size range
CoMpArED To THIS TIME LAST YEAr
THE MArKET InDUSTrY ACTIVITY renewal activity across the board (all markets, all products) is on par with last year, which indicates stabilization.
Arts & Entertainment – 7%healthcare & educational services – 53%Manufacturing & Distribution – 7%Non-Profit – 7%Food & Beverage – 7%professional & business services – 13%Other – 7%
• Dutchess/Putnam Multifamily
OFFiCe marKet sentiment
12-MonTH oUTLooK
LoCATIon DrIVErS
For more information:
WESTCHESTEr oFFICEroCKLAnD/
orAnGE oFFICEDUTCHESS/
pUTnAM oFFICESULLIVAn/
ULSTEr oFFICEHUDSon VALLEY
InDUSTrIAL
HIGHEr 30% 25% 0% 0% 20%
SAME 60% 50% 71% 71% 50%
LoWEr 10% 25% 29% 29% 30%
AskiNg RENt
WESTCHESTEr oFFICEroCKLAnD/
orAnGE oFFICEDUTCHESS/
pUTnAM oFFICESULLIVAn/
ULSTEr oFFICEHUDSon VALLEY
InDUSTrIAL
HIGHEr 10% 29% 14% 33% 40%
SAME 60% 71% 71% 50% 50%
LoWEr 30% 0% 14% 17% 10%
CONCEssiONs
WESTCHESTEr oFFICEroCKLAnD/
orAnGE oFFICEDUTCHESS/
pUTnAM oFFICESULLIVAn/
ULSTEr oFFICEHUDSon VALLEY
InDUSTrIAL
HIGHEr 10% 13% 43% 29% 50%
SAME 70% 75% 43% 57% 30%
LoWEr 20% 13% 14% 14% 20%
VACANCy
WESTCHESTEr oFFICEroCKLAnD/
orAnGE oFFICEDUTCHESS/
pUTnAM oFFICESULLIVAn/
ULSTEr oFFICEHUDSon VALLEY
InDUSTrIAL
HIGHEr 11% 0% 0% 0% 20%
SAME 78% 57% 57% 50% 40%
LoWEr 11% 43% 43% 50% 60%
tAkiNg RENt
Taking rent for office leases largely the same across all markets, which indicates stabilization.
laurence p. gottliebHudson Valley Economic Development Corporation
(845) 220-2244
erin pattersonJones Lang LaSalle
(203) 705-2261
Consolidation/Downsizing – 41%start-up – 18%Lease expiration – 18%
Expansion – 14%transit access – 9%
OFFiCe marKet sentiment
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