HGAR’s Orange County Day Shined the Spotlight on the County’s Vibrant Commercial and Residential RE Sectors

CAMPBELL HALL—On Sept. 28, the Hudson Gateway Association of Realtors feted Orange County with a highly informative and well-attended program that focused primarily on commercial and residential real estate trends.

The program aptly titled “Orange County Day,” held at the Country Club at Otterkill in Campbell Hall, featured association executives who discussed the state of the residential real estate market and legal trends, while Orange County Executive Steve Neuhaus; Conor Eckert, Senior Development Officer & Vice President of Business Attraction for the Orange County Partnership; Bill Fioravanti, CEO of the Orange County Industrial Development Agency and Oriona Nikaj, a Board Director of the Woodbury Common Premium Outlets Business Improvement District, who collectively briefed the attendees about the county’s economy and business attraction, expansion and retention efforts.

The program also included presentations by New York State Assemblyman Christopher Eachus (D-99th District) and via video by New York State Senator James Skoufis (D-42nd District).

The event kicked off with presentations by Carole McCann, HGAR Regional Director, Orange County; President-elect Vlora Sejdi and HGAR Secretary Rey Hollingsworth Falu.

HGAR Chief Executive Officer Lynda Fernandez provided the latest statistics on the Orange County residential market, which while experiencing lower sales, is enjoying rising prices and continued solid demand. She also reported on a host of association initiatives and upcoming events.

Eckert of the Orange County Partnership said that national developer interest in Orange County remains “very strong” despite the present financial market volatility.

He noted that there are a number of potential development sites in the county that have completed the municipal approval process. In fact, he related that the county currently has approximately three million square feet of industrial space/commercial space that have come onto the market in the past three years.

“We have a multitude of sites coming to market so that we can satisfy most industrial requirements,” he noted.

The current industrial vacancy rate has ticked up to 3%, which is still below the national rate of 5%. In 2023, the average industrial rent was $12.75-per-square-foot. However, he said rents are rising in Orange County. He related that a recent deal in the county netted an effective rent of $14.50-per-square-foot. At present there is approximately 250,000 square feet of Class A industrial space available in the county.

The paramount issue impacting commercial real estate transactions in the county is access to infrastructure (sewer, water and energy). “Unique sites” that have access to water, energy or are adaptive reuse opportunities “are really moving the needle,” Eckert said. He also cited having an available qualified workforce and access to housing as other critical needs going forward.

“We have sophisticated companies saying, ‘I want your site, but where are my people going to live.’ … So, we need more housing,” he said. He advised that state funding programs, such as FAST NY, the Mid-Hudson Momentum Fund and New York Forward grant programs, are helping developers deal with the high costs associated with development in New York State.

Eckert said that Orange County, due to its location, is a strategic hub for industrial distribution, but is also now diversifying its economy. Among the emerging industry sectors the county is marketing to include: life sciences/pharmaceutical, advanced technology/microelectronics, semiconductors, clean technology and the offshore wind supply chain.

He also related that U.S. Senator Charles Schumer recently announced $3,828,000 in federal funding for the Educational and Cultural Trust Fund of the Electrical Industry to help establish a Global Wind Organization onshore and offshore wind safety training facility in the Newburgh/Walden area to train New Yorkers for careers in clean energy. He also related that Orange County had secured $320,000 to perform site analysis and feasibility and the potential for adaptive reuse at the Danskammer and Roseton power plant sites in Newburgh.

After profiling some of the large possible business attraction and retention opportunities in the current pipeline, Eckert concluded his remarks by saying that he believed the towns of Wawayanda and Wallkill can serve as the hubs for advanced manufacturing in Orange County. He said they have all the key elements users require—power, sewer, water, access to key markets and available sites.

“So, I think we are going to see amazing opportunities in those two markets in particular over the next decade,” he said.

Fioravanti of the Orange County Industrial Development Agency discussed “Understanding IDA Incentives” and related some of the major projects that benefitted from IDA assistance.

Noting the controversies surrounding incentives, Fioravanti related that unfortunately incentives are necessary in some cases to help offset the high costs of doing business in New York State that could deter investment in Orange County. He said the Orange County IDA is “leveling the playing field” to make the region competitive with other low cost areas.

He said in terms of development sites, the investor is building at locations that are in many cases raw land that produce little in taxes. “There are no taxes being lost,” Fioravanti stressed. “We are not taking from the school district’s coffers or taking from your neighbor’s taxes in any way.” He also noted that any special district, such as police and fire, are completely excluded and are not impacted by any IDA agreement.

Nikaj, who is also a real estate agent at CENTURY 21 Realty Center in Monroe and a manager at Bottega Veneta at Woodbury Common, discussed the current expansion proposal involving an estimated $250-million investment that will further elevate the shopping experience for customers and retailers by adding more than 132,000 square feet of retail stores and restaurants, approximately 33,000 square feet of tenant storage space, a 200-key luxury hotel, and more than 3,000 new parking spaces. Most of the development will take place in the Niagara region of the outlet center.

The project, announced last year by owner Simon, will add more than 3,000 jobs and will open in phases. Once construction is complete, the expansion of Woodbury Common will also generate substantial additional annual tax revenues and economic benefits while attracting increased tourism to the county and region. Nikaj said the added annual tax benefit will total more than $20 million, with $8 million going to New York State, more than $8 million to Orange County, $2 million to the Monroe-Woodbury School District, more than $570,000 to the Town of Woodbury, $377,000 to the Village of Woodbury, $283,000 to the Town of Woodbury Police and $712,000 to the MTA.

Among the other benefits from the expansion project will include 770 additional full-time and part-time jobs, plus an additional 296 indirect and induced jobs in New York State and nearly 2,000 direct and indirect construction jobs, including 1,659 on site, according to Indianapolis-based Simon.

Orange County Executive Neuhaus noted that in his 2024 budget, he has proposed the ninth consecutive property tax cut for Orange County residents. He said the fiscal strength of Orange County relies on its solid economic base and its growing sales tax revenue.

He said that Orange County is investing heavily in maintaining and upgrading its infrastructure. During the question-and-answer segment of the program, Neuhaus was asked to comment on the recent release of the scoping document for the Route 17 expansion that had project estimates for the two options to be studied by NYSDOT at $1.3 billion to $1.4 billion. The construction timeline puts the first shovel on the roadway expansion in 2026. New York Gov. Kathy Hochul has committed $1 billion for the Route 17 expansion.

Neuhaus responded that the Hudson Valley region is underfunded by New York State and its roads are in poor condition. He said that state government must find a way to fund the Route 17 project. “Pay the damn bill. I have been hearing about Route 17 being converted to I-86 since I have been in diapers. It’s like ‘Big Food.’ I think it might exist… Get it done. Figure it out,” he said.

The Orange County Day program concluded with a Legal Update by John Dolgetta, Esq., principal and managing member of Dolgetta Law PPLC, who covered the latest developments in the NAR settlement case and practice changes that have been instituted and implemented by NAR, NYSAR and HGAR.

The premier event sponsor was OneKey MLS. Event Gold sponsors were: York Laboratories, Sobo & Sobo, Rolo Home Inspections, House Masters and 1st Priority Mortgage.