HVEDC 2014 Hudson Valley Business Climate Survey

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





InDUSTrIAL

HIGHEr 10% 29% 14% 33% 40%

SAME 60% 71% 71% 50% 50%

LoWEr 30% 0% 14% 17% 10%

CONCEssiONs





InDUSTrIAL

HIGHEr 10% 13% 43% 29% 50%

SAME 70% 75% 43% 57% 30%

LoWEr 20% 13% 14% 14% 20%

VACANCy





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

[email protected]

erin pattersonJones Lang LaSalle

(203) 705-2261

[email protected]

Consolidation/Downsizing – 41%start-up – 18%Lease expiration – 18%

Expansion – 14%transit access – 9%

OFFiCe marKet sentiment

Documents

HVEDC 2014 Hudson Valley Business Climate Survey