What a distinction 1 / 4 makes.
After a powerful begin to the yr with 725,000 sq. ft in leasing exercise throughout the first quarter, Fairfield County’s workplace market slowed dramatically within the second quarter with 308,000 sq. ft in leasing exercise, in keeping with information from CBRE. The second quarter marked the bottom quarterly complete for leasing exercise within the county because the first quarter of 2013.
Nonetheless, CBRE famous that the mix of the colourful first quarter and comparatively gradual second quarter contributed to greater than 1 million sq. ft in leasing exercise, the very best stage for the primary half of a yr since 2015.
Tom Pajolek, govt vp at CBRE’s Stamford workplace, noticed that this stage was primarily pushed by a single larger-than-normal transaction: WWE signing a 16½-year lease for the 415,000-square-foot, three-building advanced at 677 Washington Blvd. in Stamford that was as soon as residence to UBS.
“WWE signing within the first quarter carried the day for the yr,” mentioned Pajolek. “The second quarter felt slower.”
The second quarter’s largest transaction was Morgan Stanley’s renewal on its 25,191-square-foot lease at 1 Fawcett Place in Greenwich. The most important new leases for the quarter have been significantly smaller: a 17,100-square-foot area for Authorized & Basic America at 750 Washington Blvd. in Stamford; a 16,033-square-foot area for Onward Search at 40 Danbury Street in Wilton; and a 15,494-square-foot area for Marblegate Asset Administration at 51 Weaver St. in Greenwich.
Fairfield County posted 196,000 sq. ft in destructive web absorption throughout the second quarter, though 100,000 sq. ft of this may be traced to the newly eliminated 860 Canal St. in Stamford and 77,000 sq. ft to a pair of Shelton properties — 6 Analysis Drive and a pair of Lure Falls Street — turning into obtainable. The Central Fairfield submarket recorded 45,000 sq. ft in constructive absorption, breaking a four-quarter streak of destructive web absorption. The second quarter additionally marked the third consecutive quarter of destructive web absorption for the county.
The Greenwich CBD recorded a 14% availability fee, its highest because the third quarter of 2013 however nonetheless the bottom among the many submarkets. The Stamford CBD noticed a 28.9% availability fee and town’s non-CBD skilled a 31% availability fee.
CBRE additionally famous that new enterprise leasing — outlined as both new companies or newly established places of work of present corporations — was up considerably, from 10% within the first quarter to 34% within the second quarter. Pajolek famous that these offers have been primarily smaller transactions.
As for asking rents, there was a scant six-cent improve quarter over quarter, winding up at a mean of $35.35 per sq. foot. Pajolek noticed that Fairfield County nonetheless stays “a tenants’ market” attributable to its emptiness charges, and he didn’t forecast any hire spikes for the foreseeable future.
As for the third quarter, Pajolek mentioned, “I anticipate and hope issues will decide up, however that flies within the face of what we often expertise in the summertime,” he mentioned. “It might speed up within the fourth quarter, however I’d prefer to suppose it might decide up ahead of later.”