What a distinction a quarter tends to make.
Following an impressive get started to the year with 725,000 square feet in leasing activity throughout the initial quarter, Fairfield County’s workplace industry slowed drastically in the second quarter with 308,000 square feet in leasing activity, according to information from CBRE. The second quarter marked the lowest quarterly total for leasing activity in the county given that the initial quarter of 2013.
Having said that, CBRE noted that the mixture of the vibrant initial quarter and comparatively slow second quarter contributed to much more than 1 million square feet in leasing activity, the highest level for the initial half of a year given that 2015.
Tom Pajolek, executive vice president at CBRE’s Stamford workplace, observed that this level was mainly driven by a single bigger-than-standard transaction: WWE signing a 16½-year lease for the 415,000-square-foot, 3-creating complicated at 677 Washington Blvd. in Stamford that was after residence to UBS.
“WWE signing in the initial quarter carried the day for the year,” stated Pajolek. “The second quarter felt slower.”
The second quarter’s biggest transaction was Morgan Stanley’s renewal on its 25,191-square-foot lease at 1 Fawcett Location in Greenwich. The biggest new leases for the quarter had been significantly smaller sized: a 17,100-square-foot space for Legal & Common America at 750 Washington Blvd. in Stamford a 16,033-square-foot space for Onward Search at 40 Danbury Road in Wilton and a 15,494-square-foot space for Marblegate Asset Management at 51 Weaver St. in Greenwich.
Fairfield County posted 196,000 square feet in adverse net absorption throughout the second quarter, while 100,000 square feet of this can be traced to the newly removed 860 Canal St. in Stamford and 77,000 square feet to a pair of Shelton properties — six Study Drive and two Trap Falls Road — becoming accessible. The Central Fairfield submarket recorded 45,000 square feet in constructive absorption, breaking a 4-quarter streak of adverse net absorption. The second quarter also marked the third consecutive quarter of adverse net absorption for the county.
The Greenwich CBD recorded a 14% availability price, its highest given that the third quarter of 2013 but nonetheless the lowest amongst the submarkets. The Stamford CBD saw a 28.9% availability price and the city’s non-CBD seasoned a 31% availability price.
CBRE also noted that new venture leasing — defined as either new corporations or newly established offices of current providers — was up substantially, from 10% in the initial quarter to 34% in the second quarter. Pajolek noted that these offers had been mainly smaller sized transactions.
As for asking rents, there was a scant six-cent raise quarter more than quarter, winding up at an typical of $35.35 per square foot. Pajolek observed that Fairfield County nonetheless remains “a tenants’ market” due to its vacancy prices, and he did not forecast any rent spikes for the foreseeable future.
As for the third quarter, Pajolek stated, “I count on and hope points will choose up, but that flies in the face of what we ordinarily practical experience in the summer time,” he stated. “It could accelerate in the fourth quarter, but I’d like to assume it would choose up sooner than later.”