Brokers Hopeful for Increase in Leasing Deals in Fairfield

The two brokerage firms released second quarter office reports which indicated that office availability or vacancy rates were up in the second quarter from three months earlier, but down as compared to a year ago.

Jim Fagan, senior managing director and head of C&W's Fairfield, Westchester and Long Island offices, says, "Notwithstanding the rather unimpressive statistical activity, there appears to be quite a bit of activity in the transactional pipeline. Real estate transactions take a long time to complete. While the statistical numbers are important, the manner in which you interpret those numbers and the trends that are identified provide a more accurate picture."

He adds that the economic climate in Fairfield County continues to improve and "at present the market seems to be quite active, this just hasn't yet been reflected in the numbers."

C&W calculates that second quarter office vacancy rate for Fairfield County at 18.4%, up from the 17.9% posted at the end of the first quarter of this year but down from the 20.3% rate registered a year ago. CBRE reports Fairfield County's office availability rate at 17.9% at the end of the second quarter, down almost a half a percentage point from June 2003.

Dean Shapiro, senior managing director of CBRE, comments, "Once a real economic recovery is in full swing, and companies begin hiring again, we'll see a significant turnaround in Fairfield's office market-–even in places like Stamford. Already, with just a little new confidence, we've seen a pick-up in demand and the virtual disappearance of layoffs and space shedding."

Both firms report that the Stamford Central Business District continues to struggle with outward migration and the lack of tenant demand. The market directly outside of the CBD in Stamford has fared better of late.