NEW HAVEN: A detailed real estate report by the real estate firm Colliers International shows that new developments in the recently ended 1st Quarter combined to produce a positive outcome for New Haven’s office market. While the report presents the information as good news the actual city’s vacancy rate has increased in the quarter.
More than 60,436 feet of square footage was absorbed in the quarter, which is a pretty healthy number for New Haven. As we previously reported in January, Colliers had not yet considered the new 95,000 of square feet by the new “tech” building, District. The most recent report includes that added space to the New Haven market, and it has increased the overall vacancy rate for the city from 19% percent at the end of 2017 to 19.3 percent today in spite of the new square footage leased.
The Collier’s report authored by New Haven realtor John Keough describes the District located at 470 James Street between the East Rock and Fair Haven neighborhoods.
“District is a renovated and remodeled Connecticut Department of Transportation bus garage. It features wide-open collaborative work spaces with high ceilings and clean surfaces, all of which are meant to appeal to entrepreneurs in the city’s growing tech scene. Inaugural tenants there include Digital Surgeons, a marketing firm founded by David Salinas, the building’s principal developer. The property also offers a 12,000-square-foot co-working space, a CrossFit gym, a restaurant and an outdoor amphitheater.”
Big news for downtown New Haven, was the subleasing of 39,576 feet for 13 years by the Boston headquartered medical imaging company Invicro at 100 College Street. The space was vacated by Alexion [NYSE:Alxn] which dropped 300,000 square feet for the movement of its headquarters to Boston.
The company is holding on to 200,000 square feet for the research team that manages its core revenue product Soliris.
Invicro, acquired the New Haven start-up MNI two years ago, and is retaining its lab space at 60
Temple Street and moving its executive and administrative functions to the 100 College street
Keough cites, the Connecticut Conference of Municipalities, a not-for-profit that lobbies on behalf of the state’s cities and towns and organizes pooled buying of insurance and other services. The organization is leaving its longtime home at 900 Chapel Street and moving to 545 Long Wharf Drive, the former headquarters of Southern New England Telephone Company, where it will occupy 30,000 square feet.
According to Keough’s report, the Long Wharf building, purchased by New Boston Fund in 2007, “has been suffering from low occupancy rates as successor owners of SNET ╨ the latest being Frontier Communications have pulled employees out of the building.”
The Invicro lease, helped decrease the Class A vacancy rate from 31.0 to 29.7 percent. The report comments on the impact of the sublease on downtown saying ,”it can also be seen as a plus for New Haven in that the organization contemplated moving to a suburban building in the Interstate 91 corridor.”