Survey Sampling International renewed 47,765 square feet at 6 Research Drive in Shelton
STAMFORD: A second quarter report by Colliers International Group [Nasdaq: CIGITSX:CIG] shows that the Fairfield County office market showed gains in spite of the impact of some large scale vacant space.
The report follows::
The Greenwich and Stamford submarkets continued to post positive activity, but rumored interest among some large occupiers wasn’t enough to prop up leasing across the County, which fell 44.5% below the five-year quarterly average to 495,304 square feet. Concurrently, the average asking lease rate dipped from last year, falling $0.14 per square foot to $35.95.
“Newly available space at 383 Main Ave. in the Central submarket contributed to half of the 60 basis point increase in the availability rate, which rose from last quarter to 24 percent,” said Sean Cullen, director of research for Colliers’ Stamford office. “With the exception of the Greenwich and Stamford submarkets, availability rose across the entire county.”
- The Eastern submarket led the County with 160,070 square feet of leases signed, but newly available space pushed the availability rate up 50 basis points from last quarter to 15.5 percent, still the lowest rate in the County. The largest lease, Survey Sampling International’s renewal of 47,765 square feet at 6 Research Drive in Shelton, couldn’t reverse the climb in availability rate.
- The Central submarket’s availability rate increased 280 basis points from last quarter, reaching a record 26.9 percent. A primary contributor was the marketing of Reed Exhibition’s space at 383 Main Ave. in Norwalk, although Reed has not officially announced a relocation decision. Despite the high availability rate, the average asking lease rate rose for the second quarter, climbing 2.4 percent from last year to $31.64 per square foot.
- Greenwich continued to post impressive submarket activity as availability decreased for the fifth consecutive quarter to 16.6 percent, thanks to activity like Eagle Point Credit taking 20,000 square feet at 600 Steamboat Road. The 120 basis point drop from last quarter marked a low not seen since Q2 2009. As space conditions continue to tighten, the average asking lease rate rose moderately over last year, by $0.30 per square foot to $66.00.
- The availability rate in Stamford’s CBD and Non-CBD submarkets showed modest improvement, buoyed by notable transactions like Perkins Eastman, which took 13,000 square feet at 677 Washington Blvd. The transaction was not one of the largest leases this quarter, but the company was the first to sign at the Class A building since UBS vacated it in 2014 – a potential harbinger of better things to come for that building and for the submarket overall. During the quarter, the Stamford CBD availability rate dropped by 20 basis points to 32.9 percent and the Stamford Non-CBD fell by 30 basis points from last quarter to 28.1 percent.
- The overhang of space in 2017 in the Northern submarket kept the availability rate frozen from last quarter at 15.7 percent, but leasing activity in the submarket remained almost identical to the five-year quarterly average at 40,447 square feet. New supply and demand have largely been in check in recent quarters, but the average asking lease rate dropped 7.2 percent from last year to $22.15 per square foot, as new supply is priced lower than recently leased space. Significant activity in the second quarter included Owl Cyber Defense Solutions, which took 30,230 square feet at 42 Old Ridgebury Road in Danbury.