The largest decline in office vacancies has taken place of late in the South Central region, which includes Norwalk, Darien, New Canaan and Wilton. There the office vacancy rate for Class A and B space now stands at 26.8%, down 2.2% from the 29.4% rate posted at the end of 2002.

While the market is showing some early signs that it might be strengthening, average asking rental rates throughout Fairfield County continue to fall. The average asking rent countywide fell from $29.85 per sf a year ago to $29.07 per sf at the end of the first quarter 2003. Class A average asking rents fell countywide from $31.97 per sf to $30.95 per sf. The only market that saw its average asking rent rise in the first quarter of this year was the South Central region (Norwalk, Darien, New Canaan and Wilton). Rents for Class A space rose from $29.54 per sf a year ago to $30.07 per sf in the first three months of this year.

The average asking rent in downtown Stamford for Class A space now stands at $33.75 per sf, down from $37.39 per sf recorded a year ago.

Commenting on Fairfield County's performance in the first quarter of this year, Mike Gordon, director, business development for Cushman & Wakefield's Stamford, office, says, "It remains to be seen whether the slight rebound in market conditions will continue throughout 2003. So far, the indicators are all positive-there were a number of major lease transactions completed this quarter, vacancies have dropped, less space has been added to the market and there is definite tenant interest."

Gordon cautions that despite the slight improvement in market conditions, "It's still a tenant's market. Landlords are continuing to offer generous concession packages in an effort to attract or retain tenants. That represents a significant opportunity."